| GoAir May Break
Even In Two Years |
|
| |
|
| December 19, 2005 |
|
| |
|
Hindustan
Times, Bobby Anthony - Mumbai WADIA
GROUP airline GoAir, which launches operations
this year, plans to add new routes to Allahabad,
Khajuraho, Bhubaneshwar and Madurai by March
2006 and is expecting a break-even in the next
two years. “We are also looking at a third
frequency to Goa which is a high density route,”
GoAir Managing Director Jeh Wadia said. He said
the low-cost airline also plans to start flying
to Category 1 routes that connect the metros,
by mid 2006. “Ensuring that passengers
continue to get the lowest fares continues to
be our focus. But we will introduce new routes
and more frequencies next year. We also hope
to break even in two year’s time,”
he said. |
|
| |
|
GoAir’s talks with Airbus and Boeing
are expected to conclude by the end of January
2006 and a decision on acquiring new aircraft
will be taken at around that time. The airline
also intends to expand its fleet to around
16 aircraft by September 2007. “We intend
to have a fleet of 30 aircraft by September
2008,” he said. Claiming that the airline
has a seat load factor of around 75 percent
across all routes, Wadia said: “ We
would like to cut down our costs further by
better utilization of capacity, turn around
time as well as keeping our lease costs low.”
Industry sources said the airline would soon
cover more routes like Bhavnagar, Aurangabad,
Kolhapur, Rajkot, Jammu, Bhopal and Kozhikode
in the coming months. |
|
| |
|
“The fares which GoAir offers right
now are not merely promotional. We intend
to keep fares as low as possible and continue
to target railway passengers as well as those
who typically travel by Volvo buses,”
he said. The civil aviation industry is growing
at a rate of 26 per cent and that low cost
carriers still have enough space to grow,
he said. “The market is still untapped
and is still expanding. There are enough middle
class railway passengers in India,”
he said. |
|
| |
|
| |
|
| Wadias To Sell
Stake In Cargo Airline Venture |
|
| |
|
| December 13, 2005 |
|
| |
|
Times
Of India, Byas Anand - New Delhi: With
its maiden airline venture GoAir taking off
in the domestic skies last month, the Wadia
family is planning to cruise deeper into the
aviation market with a freighter airline and
an aviation engineering venture. But this time
round, both these ventures will not be a solo
effort. The family is planning to offload minority
stakes in the two proposed aviation ventures
- the freighter airline Go Cargo, and the airline
engineering centre Go Engineers. |
|
| |
|
While the promoter
firm GoAir is in talks with financial investors
to buy stake in Go Cargo, it plans to induct
an aviation engineering firm as a strategic
investor in Go Engineers. ”We are looking
at external equity participation in both Go
Cargo and Go Engineers. While the equity partners
in both the ventures are yet to be finalised,
the Wadia family has decided to hold the majority
stake in both these companies,” GoAir
managing director Jehangir Wadia told The Times
of India. |
|
| |
|
| GoAir Scouts For
Cargo Partner |
|
| |
|
| December 12, 2005 |
|
| |
|
Times
of India, Byas Anand - New Delhi: With
its maiden airline venture GoAir taking off
in the domestic skies last month, the Wadia
family is planning to cruise deeper into the
aviation market with a freighter airline and
an aviation engineering venture. But this time
around, both these ventures will not be solo
efforts. |
|
| |
|
The family is planning to offload
minority stakes in the proposed ventures –
the freighter airline, Go Cargo, and the airline
engineering centre, Go Engineers. While the
promoted firm GoAir is in talks with financial
investors to buy stake in Go Cargo, it plans
to induct an aviation engineering firm as a
strategic investor in Go engineers. “We
are looking at external equity participation
in both Go Cargo and Go engineers. While the
equity partners in both the ventures are yet
to be finalized, the Wadia family has decided
to hold majority stake in both these companies,”
GoAir managing director Jehangir Wadia said. |
|
| |
|
The partners for both the ventures
are expected to be selected by February 2006.
“With Go Engineers, our idea is to set
up an engineering facility for both narrow-
and wide-body planes in India. The facilites
will not only provide engineering services to
GoAir planes, but also to other airlines both
in India and abroad. We want to make India the
hub for aircraft engineering services and are
planning to induct a strategic investor to help
us in the job,” he said. |
|
| |
|
India, with its low cost structure,
has the capability to emerge as a hub for engineering
services, he added. The company has already
initiated talks with both Airbus and Boeing
for inducting special freighter planes for its
cargo venture- a segment that is also drawing
other private sector rivals like Jet Airways
and Kingfisher Airlines. “We are looking
at all options, ranging from starting with a
leased fleet or going in for outright purchase
of aircraft. The modalities are expected to
be finalized by January-end,” he said. |
|
| |
|
It is also evaluating planes
from both Airbus and Boeing to place its first
purchase order for passenger jets. The airline,
which plans to start services to Delhi this
summer, hopes to have a fleet of 50 planes by
the end of its third year of operations. |
|
| |
|
| GoAir
Planning To Connect 4 More Cities |
|
| |
|
| December 8,
2005 |
|
| |
|
Business Standard, Corporate
Bureau - Mumbai: The
Wadia Group-promoted GoAir is planning to
add Hyderabad, Bangalore, Chennai and Jaipur
to its flight itinerary from December 12. |
|
| |
|
The airline would offer 10,000
free tickets on its new destinations on first-come-first-serve
basis. Passengers availing this scheme will
only have to pay taxes amounting to Rs 221and
can avail of the scheme till March 26, 2006. |
|
| |
|
Earlier, the airline had offered
10,000 GoAir FreeFares for its initial four
destinations - Mumbai, Ahmedabad, Coimbatore
and Goa. |
|
| |
|
With the launch of this service
to these four new routes, GoAir’s destination
strength would increase to 8 cities, thereby
ensuring passengers are connected to important
business and leisure destinations within the
country. |
|
| |
|
Jeh Wadia, managing director
of the Wadia group, said the airline would
aggressively look at route expansion in a
progressive manner. |
|
| |
|
“The addition of new routes
substantiates our commitment to our passengers
by connecting them to important destinations
in India. All four destinations have immense
business and leisure potential. Our services
to these cities will not only enhance our
business but also increase tourist flow to
these destinations,” he said. |
|
| |
|
|
GoAir Via Grocery Shops |
|
| |
|
| December
8, 2005 |
|
| |
|
Business
Standard, P. R Sanjai - Mumbai: Your
friendly neighbourhood grocery store may soon
be selling air tickets, courtesy GoAir, the
latest private carrier on the block. The aim:
a prospective air traveller should be able to
buy tickets within 50 metres of his home or
workplace. The Wadia Group-promoted GoAir is
planning to hawk tickets through retail stores
where the group company’s Britannia biscuits
are sold. |
|
| |
|
“We are exploring the
options to sell GoAir tickets through 750-odd
Britannia stores and over 800,000 retail stores
where Britannia biscuits are sold,” GoAir
Managing Director Jeh Wadia told Business Standard. |
|
| |
|
| The airline is planning to tie up with post
offices and public call offices as well. |
|
| |
|
At present, GoAir tickets can
be bought through travel agents, customer care
centres, mobile phones, the Internet, Tata Indicom
centres and other channel partners. The airline
has signed agreements with the LPG stations
of Bharat Petroleum and Hindustan Petroleum
to sell tickets. |
|
| |
|
Other no-frills airlines—Air
Deccan, SpiceJet and Paramount Airways—are
also planning to reach out to air travellers.
For instance, Air Deccan has made arrangements
to sell tickets through 2,000 outlets of Hindustan
Petroleum gas stations and has tied up with
Reliance Web World spread over 110 cities. |
|
| |
|
“The basic idea is to
provide 24 hours’ service to passengers,”
Air Deccan Managing Director GR Gopinath said.
SpiceJet has set up “SpiceJet Shops”
in association with select travel agents in
addition to ticket counters at airports. “Plus,
there are the Internet and call centre facilities,”
a SpiceJet executive said.
|
|
| |
|
|
GoAir Set To Seal $3 Billion Aircraft Shopping
List |
|
| |
|
| December
8, 2005 |
|
| |
|
Indian
Express, Zeeshan Shaikh, Mumbai: Low-cost
carrier GoAir is likely to finalise the acquisition
of around 35-50 aircarft valued at $1.5-3 billion
from either Boeing or Airbus in the next month
even as it plans to expand its services to North
and East India by operating flights to 20 new
sectors including cities like Delhi and Kolkata
from March onwards. |
|
| |
|
‘‘We are looking
at acquiring 35-50 aircraft worth $1.5-3 billion
over the next five years. We will arrive at
a decision in January,’’ GoAir MD
Jeh Wadia said |
|
| |
|
The airline is likely to buy
some of these aircraft while the others would
be taken on lease. It presently operates with
two A-320 aircraft and is planning to add one
more aircraft of the same make in the next month.
GoAir would have seven A-320 aircraft in its
fleet by July 2006. |
|
| |
|
Industry watchers say that
the Wadia’s-owned airline in all probability
would throw its lot behind Airbus as its crew
was already being trained on these kinds of
aircraft. |
|
| |
|
The airline is also planning
to make a major thrust into the North Indian
region and Jammu and Kashmir by planning to
serve as many as 20 new sectors in the region
by March 2006. ‘‘GoAir will be serving
around 20 new sectors including cities like
Delhi, Lucknow, J&K, Shimla, Amritsar, Allahabad,
Khajuraho, Agra, Udaipur and Kolkatta amongst
others by March next year,’’ Wadia
said. |
|
| |
|
All the flights to these sectors
would be daily and we will be deploying our
A-320s on these new routes, he added. The company
presently operates on four sectors including
cities like Mumbai, Goa, Ahmedabad nad Coimbatore
and will be starting services to cities like
Hyderabad, Bangalore, Chennai and Jaipur from
December 12. |
|
| |
|
|
GoAir Offers 10,000 Free Tickets On New Routes
|
|
| |
|
| December
8, 2005 |
|
| |
|
Deccan
DNA, IANS- Mumbai: The low-cost private
airline GoAir is offering 10,000 free tickets
on its four new destinations from here to Hyderabad,
Bangalore, Chennai and Jaipur beginning Wednesday. |
|
| |
|
The tickets are available on
a first-come-first-serve basis till March 26
or till stocks last, a release by the airline,
promoted by the Wadia Group, said. |
|
| |
|
| Passengers will, however, have to pay Rs.221
($4.7) as taxes. |
|
| |
|
"In the coming months,
we will aggressively look at our route expansion
in a progressive manner," GoAir Managing
Director Jeh Wadia said. |
|
| |
|
All four destinations - Hyderabad,
Bangalore, Chennai and Jaipur - have immense
business and leisure potential, Wadia said.
He said GoAir's distribution network has been
carefully planned keeping in mind that passengers
do not have to travel long distances to purchase
a ticket. |
|
| |
|
GoAir, which took off on Nov
4 with scheduled services to Goa, Ahmedabad,
and Coimbatore from Mumbai, operates two A320
aircraft with a single class, 180-seat configuration,
and plans to expand its fleet to 36 aircraft
in three years. |
|
| |
|
| GoAir
Offers 10,000 Free Tickets On New Sectors |
|
| |
|
| December
7, 2005 |
|
| |
|
The
Hindu Business Line, Our Bureau - Mumbai: GoAir, the low-cost carrier promoted by the
Wadia family, has extended the GoAir FreeFares
scheme to the four new destinations - Hyderabad,
Bangalore, Chennai, and Jaipur - it will fly
effective December 12. |
|
| |
|
Under the FreeFares scheme,
the airline has offered passengers 10,000 free
tickets on these sectors on a first-come-first-serve
basis. Tickets bookings will commence on December
7 and will last till stocks are available. Passengers
availing of the scheme would get a zero fare
and will only have to pay taxes amounting to
Rs 221. |
|
| |
|
| The airline has announced a
daily service on the Mumbai-Jaipur-Mumbai route.
Its existing Mumbai-Coimbatore daily service
will be extended to cover Chennai, Hyderabad,
and Bangalore. |
|
| |
|
| The FreeFares scheme was earlier
offered to mark the launch of its initial four
destinations - Mumbai, Ahmedabad, Coimbatore,
and Goa. |
|
| |
|
The airline is launching the new destinations
following the delivery of its second A320 aircraft.
|
|
| |
|
| Go
Goes For Cargo, Engg Services |
|
| |
|
| December
7, 2005 |
|
| |
|
DNA,
Praveena Sharma - Mumbai: After the smooth
take-off of its passenger airline in October,
Bombay Dyeing-promoted low cost carrier Go Air
is preparing to launch its cargo airline and
engineering services late next year.
|
|
| |
|
“We are in the process
of finalising our plans to start a freighter
airline and set up an engineering facility for
narrow and wide body aircraft. We will freeze
our plans for these two services by end of December,”
Go Air managing director Jeh Wadia told DNA. |
|
| |
|
| The younger Wadia scion says
the two new services would go under the head
Go Engineers and Go Cargo. They would operate
as separate entities and would be profit centres
by themselves. |
|
| |
|
“We have identified both these areas as
potential for financial investments. They offer
the adequate and equal growth as commercial
aviation business, which is growing at around
20%,” says Wadia. |
|
| |
|
Besides Go, the other Indian
airline that has announced plans of launching
a freighter is the full service airline Jet
Airways. Analysts say airline companies are
rushing into cargo airline business because
of the exponential growth in the exports and
imports of the country. This has thrown up immense
opportunities in this sector. |
|
| |
|
“Going by India’s
intra and inter country flow of goods and services,
it makes sound business sense for airlines to
venture into this sector. Also, it is fairly
simple to get into cargo business in the domestic
sector, where they have only the Blue Darts
of the world to compete with,” says N
M Rothschild & Sons (India) Pvt Ltd assistant
director Amitabh Malhotra. |
|
| |
|
Wadia says the airline was
already in talks with Airbus and Boeing for
acquisition of aircraft for both cargo and passenger
business. Meanwhile, it has added one more A320s
in the second month its operation. |
|
| |
|
“We want expand our fleet
strength to eight aircraft by next October.
Our plan includes acquisition of 36 aircraft
in the next three year,” says Wadia. |
|
| |
|
Go, which started its services
to three destinations (Goa, Coimbatore and Ahmedabad),
is adding four more destinations (Jaipur, Chennai,
Hyderabad and Bangalore) this month. |
|
| |
|
| Wadias
Line Up Cargo Airline |
|
| |
|
| December
6 , 2005 |
|
| |
|
Hindustan
Times, Sabarinath M - Mumbai: The Wadia's
are expanding the horizon of their aviation
business by floating a freighter airline and
setting up aircraft engineering facility under
the Go brand name. |
|
| |
|
The group, which runs the low-cost-airline
GoAir, is finalizing a plan to launch Go Cargo
and Go Engineering will be two different entities
managed by independent teams. |
|
| |
|
The move is part of the overall
strategy to create an independent identity to
the Go brand within the Wadia group structure.
Speaking to Hindustan Times, GoAir managing
director, Jeh Wadia said: “We are planning
to venture into cargo and engineering businesses
shortly. This is a logical way of expanding
the scope of our aviation business.” |
|
| |
|
The group, which has placed
orders for additional aircraft to expand its
airline business, is now looking at acquiring
more aircraft to start the cargo business. |
|
| |
|
Go Engineering is evaluating
options to set up a unit for the maintenance
of narrowbody and widebody aircraft. “Indian
engineers are extremely talented than their
counterparts in places like Europe. Hence, India
is the best place to start the aircraft engineering
business.” GoEngineering will also look
at starting a training centre for the aspiring
airline executives. |
|
| |
|
GoAir, which has moved into
a new office in Andheri, has beefed up its team
by recruiting three expats in the top management
cadre. These expats have been roped in from
European low-cost airline Fly Niki which has
a strategic alliance with Air Berlin. GoAir
has roped in Cor Blokziji for the position of
chief operating officer. |
|
| |
|
The airline is now in the process
of recruiting executives for expanding its business.
GoAir is launching flight services in Coimbatore-Chennai-Coimbatore,
Chennai-Hyderabad-Chennai and Mumbai-Jaipur-Mumbai
routes. New routes have been added after the
arrival of the second Airbus aircraft. |
|
| |
|
The airline, which is already
flying to Goa and Ahmedabad from Mumabi, is
offering 10,000 free tickets to passengers on
a first come serve basis. |
|
| |
|
| GoAir, which intends to expand
its fleet to 36 aircraft in three years, is
the third low-cost airline to take wings after
Air Deccan and Spice Jet. |
|