Wednesday, October 17, 2018

GoAir’s plan to sub-lease aircraft suffers setback, talks with Bamboo Airways fall through

Mumbai: Wadia Group-promoted budget airline GoAir’s plan to largely be an Airbus A320neo fleet airline seems to have suffered a setback as the airline’s discussions with start-up Vietnamese carrier Bamboo Airways to sub-lease its A320ceo aircraft have fallen through, a source close to the development told FE.

The airline was in discussion with the Vietnamese carrier, which has delayed its October launch, for sub-leasing nine of its A320ceo aircraft type. GoAir, with a fleet of 41 aircraft — a mix of both A320neos and A320ceos — had earlier said that it was weighing options of either sub-leasing its A320ceos or returning the lease of 16-17 of the A320ceos in its fleet.

“We are looking at whether we should be keeping the A320ceos on board or return the leases as they are 20% more expensive than the A320neos. We are looking at the sub-leasing options for the A320ceo fleet as well,” GoAir CEO Cornelis Vrieswijk had told the media earlier in August. The airline plans adding 13 A320neo aircraft to its fleet by March 2019. A deal with Bamboo Airways could not be consummated as GoAir was pricing its A320ceos much higher than the existing market rate, a source said.
“An Airbus A320ceo is available in the market from anywhere between $1,95,000 to $2,15,000 per month per aircraft (depending on vintage). GoAir was asking for around $2,65,000,” said a person familiar with the negotiation.
17/10/18 Manisha Singhal/Financial Express