GoAir says P&W engine deal worth $1 bln

New Delhi: Low-cost airline GoAir's engine supply deal with United Technologies Corp's Pratt & Whitney unit is valued at about $1 billion, managing director Jeh Wadia said.
The privately held airline, which has a market share of about 6 percent in India, ordered 72 A320 aircraft from Airbus last year for about $7.2 billion.
Pratt & Whitney will supply about 150 engines when the planes are delivered between 2015 and 2020, Wadia said in an interview on Wednesday. The deal will be funded through a combination of equity and debt, he said.
"The reason why we chose these engines is because they will give us fuel efficiency of more than 15 percent in total, and that would relate to 11 percent improvement in direct operating cost," Wadia said by phone from Mumbai.
Indigo, the only major Indian airline that is making a profit, also ordered 150 Pratt & Whitney engines for planes it ordered from Airbus last year.
Wadia declined to reveal GoAir's debt load but said the company would be "extremely profitable" on an operating basis if fuel costs had not risen. He did not elaborate.
India's airlines, burdened by $20 billion of debt and fighting high fuel costs and low fares, are desperately seeking changes in government policies to help their business.
15/02/12 Reuters/Moneycontrol.com

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Categories: Foreign Feb 2012, GoAir Feb 2012