Mumbai: Jet Airways and GoAir will place aircraft orders worth $6.5 billion with Airbus SAS at the Paris Air Show later this month, signaling that the domestic aviation sector may be turning the corner after grappling with rising fuel prices and slow economic growth.
The aircraft orders will be a mix of narrow-body A320 type for short-haul routes and wide-body aircraft for long-distance flying, two sources with knowledge of the matter said. Wadias-promoted GoAir, the smallest budget airline in the country, will place a minimum order for 50 A320s worth $4 billion, while Naresh Goyal-promoted Jet Airways will buy 10 Airbus A330s worth $2.5 billion for its international plans. The average cost of single-aisle A320 type is $80 million and that of wide-body A330 type is $250 million.
Airlines though, negotiate discount pricing and this is kept confidential as it differs from deal to deal. IndiGo will be placing firm orders for 180 A320s with an estimated value of $15 billion. The airline had signed a memorandum of understanding with Airbus in December 2010 for the deal. According to aviation experts, the Indian market has grown by over 25% and tripled itself over the past five years. It is expected to sustain this growth for the next couple of years, allowing Indian carriers to expand.
09/06/11 Manisha Singhal/Economic Times
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