Go with Go Air to fly overseas

Go Airlines (India) Ltd, which runs no-frill airline, GoAir, has taken delivery of its first fuel efficient A320neo aircraft. The European airplane maker Airbus SAS clarified that A320neo, powered by Pratt and Whitney engines. The A320neo planes are expected to offer 15 per cent to 20 per cent savings on jet fuel, which makes up the largest portion of spending by airlines. The aircraft is configured in a conformable layout and innovative Spaceflex cabin configuration with 186 seats.

GoAir’s first of 72 NEO aircraft on order, the company has reached a fleet strength of 20 aircrafts. The company placed an order for 72 new A320 Neo aircraft in June 2011, valued at about Rs 32400 crore.

GoAir currently flies to 22 Indian destinations. After introduction of new carrier, the company will expand its network and offer fliers better connectivity and continue its growth as one of India’s preferred low-cost airline.

The company is planning for initial public offer (IPO) which is directly linked with the induction of A320neo planes into its fleet. GoAir would finalize the share sale plan once it receives clarity on the delivery schedule from Airbus. According to media reports, it will likely to file the draft red herring prospectus for its IPO in Q3FY17. The company may dilute about 24 per cent stake in the airline and likely to raise Rs 1000 to 1200 crore.

In October 2015, the IPO of InterGlobe Aviation, which operates India’s largest and most profitable airline IndiGo, received block buster performance from investors.  The company already took A320neo aircraft on 10 March from Airbus and another 24 A320neo aircrafts will be delivered by March 2017.