Thursday, July 30, 2020

To cut costs, GoAir may retire 12 A320 CEO aircraft

Mumbai: The Wadia Group-owned GoAir may be retiring 12 of its A320 CEOs earlier than scheduled as part of its cost-cutting measure to deal with subdued air travel. However, the lessors of at least seven of these aircraft are resisting the move, and have demanded a balloon payment on lease rentals for the remaining period.

Sources privy to the information said that GoAir is negotiating to swap the A320 CEO aircraft with A3020 NEOs, which the airline had ordered earlier. But the lessors are not in favour of such a swap and are insisting that GoAir should pay the lease rentals.

According to information available on, four of the twelve A320 CEOs has been operational for 10 years. A source explained that as per a clause in the lease agreement, post 10 years of an aircraft being in a particular fleet, it can be returned. However, the average age of the other eight aircraft is anywhere between six to eight years.

Currently, the no-frills GoAir operates only 15 to 18 daily out of its total fleet of 55 aircraft. Even here, government regulations allow only up to 45 per cent of the seats to be sold.

Responding to BusinessLine’s query, a company spokesperson said: “It is an established fact that NEO technology provides 15 to 20 per cent better fuel efficiency when compared to the CEO technology, in addition to six extra seats and the commonality of the fleet for ease of maintenance and overall costs.”
29/07/20 Forum Gandhi/Business Line
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