GoAir may buy more planes to connect smaller cities
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Budget carrier GoAir, which recently ordered 72 Airbus SAS A320neo jets last month, is considering adding smaller planes to tap rising travel demand in the South Asian nation.”The Indian market has significant potential for regional aircraft,” Giorgio De Roni, who took over as chief executive officer last month, said in an interview with Bloomberg.GoAir has had “very preliminary” talks with planemakers Avions de Transport Regional, Bombardier Inc (BBD/B)and Embraer SA (EMBR3), he was quoted saying.GoAir may join rival SpiceJet in ordering smaller planes that seat less than 100 people as economic growth spreads beyond India’s major cities. The Mumbai-based carrier plans to double its fleet of larger A320s to 20 in the next two years before it starts receiving aircraft from its latest order.”There is a strong case for airlines to create a regional network,” said P.C.K. Ravindran, chairman of Kochi, India-based Institute of Applied Aviation Management, and an adviser on aviation projects. “Gradually, if not immediately, air traffic will grow in states as industrialisation catches up.”Deliveries of GoAir’s 72 A320neos will begin in 2016. The airline currently flies to smaller Indian cities including Bagdogra, Guwahati, Jaipur and Nagpur using its A320s. The carrier had sales of $300 million in the last financial year and posted a profit.Another budget carrier, SpiceJet, would add 15 Bombardier Q400 turboprops by July next year. The carrier is expanding services to smaller cities and towns as it aims to more than double passenger numbers in three years. It ordered the planes last year and took options for another 15.IndiGo, the nation’s biggest low-fare airline, last month placed an order for 180 Airbus planes at the Paris Air Show.
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