GoAir mulls leasing planes to retain market share

Mumbai: GoAir is evaluating plans to lease planes over the next two to three years, to retain its market share as India opens to two new domestic airlines.
The Wadia group-run airline has 17 Airbus A320 planes now and will add three more aircraft by next July. It has no further deliveries scheduled till 2016, when Airbus rolls out its fuel-efficient A320neo.
GoAir has 72 of the A320neo on order but is now also looking at options to increase capacity till it begins receiving the former. AirAsia India, which is awaiting approval from the Directorate General of Civil Aviation, has indicated it will import 10 planes in its first year of operations. Tata-Singapore Airlines also plans to launch services next year, raising the competition for existing airlines.
“We are in discussion with Airbus and leasing companies. No decision has been taken. We are evaluating plans,” GoAir’s chief executive officer, Giorgio De Roni, told Business Standard on Friday.
He said the  management was studying market growth and demand evolution. A decision in the matter was not easy, he said, with weak market conditions and uncertainties in the regulatory framework, dollar movement and the price of aviation turbine fuel. De Roni said he could not share a figure for the additional planes which could be taken on lease, as a decision was yet to be taken.
Read news in full 21/12/13 Aneesh Phadnis/Business Standard