GoAir bets big on fleet expansion to fly higher

Mumbai: The Wadia group-promoted GoAir hopes to achieve breakeven in financial year 2008-09, even as it invests heavily to expand its fleet.
GoAir managing director Jeh Wadia told DNA Money, “We intend to breakeven by end-2008 or beginning-2009 and thereafter start making profits in the next six months time.” The airline plans to go for a public issue after it achieves breakeven.
Wadia said the airline has also received 6-7 proposals from private equity players.
The low-fare carrier on Thursday roped in Bollywood actor Priety Zinta as its brand ambassador. Wadia said, “The idea was to reinforce the airlines value and what it stands for.” It spends 4% of its revenues on marketing and advertising.
The airline is expanding its fleet to 34 aircraft as compared with the present 5 leased aircraft by 2010 to tap the booming domestic air travel. GoAir will induct two more aircraft in October.
19/04/07 Vijay Ganeshan/Daily News & Analysis

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Categories: GoAir Apr 2007