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| News |
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| GoAir
In Talks With Leasing Cos For Maintainance JV |
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| March
24, 2006
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The
Economic Times, Rajesh Unnikrishnan & Kala
Vijayraghavan, Mumbai: The
Wadia group is in advanced talks with SIA Engineering
Co, Singapore Technologies Engineering, Lufthansa
and Air France to form a joint venture for aircraft
maintenance in India. The family has also recently
tightened its hold over discount carrier Go
Airlines by shifting the 49% stake held by group
company, Bombay Burmah Trading Corporation,
to the family, making it a 100% Wadia subsidiary.
Jeh Wadia, managing director of Go Airline told
ET that the group is in talks with four aircraft
leasing maintenance companies to form a joint
venture for maintenance, repair and overhaul
(MRO). |
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The
group has chalked out plans to extend the Go
brand. The idea is to leverage the low cost
of engineering services in India by setting
up an engineering facility under Go Engineering.
After the restructuring, the Wadia family has
created a common holding company, Go Holdings.
A cargo airline is also being planned with the
‘Go’ brand. The MRO joint venture
will service both widebody and narrowbody aircraft.
Mr Wadia said that the group is also talking
to ST Engineering, Lufthansa and Air France. |
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"We don’t
know who our partner will be at this point in
time,” he said, adding that an independent
MRO venture was a viable business proposition
as cost-conscious carriers were likely to outsource
such functions. The Wadia group has also announced
that future group investments will be made primarily
in new economy sectors like aviation, real estate
and retail. The group wants to cash in by outsourcing
and tapping the huge manpower potential. The
group has so far been involved in textiles,
chemicals, food, plantations, health care and
education. |
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| Wadia Group Plans
To Start Cargo Airline |
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| March 22, 2006 |
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| The
Hindu Business Line, Bureau, Mumbai: The
Wadia group, promoters of the low-cost airline
GoAir, is looking at other areas of investment
in the aviation industry, including a cargo
airline. Mr Jeh Wadia, Managing Director, GoAir,
told a press conference on Tuesday that the
group hoped to take a decision in a month or
two on the cargo airline, likely to be named
GoCargo. The group would also look at other
areas for investment in the aviation industry,
including starting an institute to train technical
staff. |
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Not
under GoAir banner: He
said that the proposed cargo airline and the
other investments would be separate investments
and would not come under the GoAir banner. Mr
Wadia said there was tremendous scope for a
cargo airline in the country and the group planned
to tap this potential. Likewise, he anticipated
an increase in demand for technical personnel
and pilots following the huge growth in the
air passenger traffic. |
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GoAir,
which started operations on November 4, 2005,
now has 20 flights a day covering 11 cities.
This would go up to 28 flights a day covering
14 cities from April. The airline had bases
in Mumbai, where it now stationed two aircraft,
and Chennai, where it had one aircraft. Over
time, the airline would have bases in Delhi
and Kolkata too, and planned to station four
to six aircraft in each of these bases. GoAir
operates A320 class of aircraft. |
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| Official
carrier: He said GoAir was the official
carrier for the India-England one-day international
cricket series starting on April 1, for which
it had signed an agreement with the Board of
Control for Cricket in India. It would operate
special flights to Delhi, Goa, Kochi, Guwahati,
Ranchi, Indore and Mumbai - all venues for the
matches - carrying players of both the teams,
national and international media persons. It
would also auction a few seats on each flight
to the Indian public. |
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| GoAir
Plans To Soon Launch Go Cargo |
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| March 22, 2006 |
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The
Asian Age, Correspondent, Mumbai: The
Wadia Group which operates the air carrier GoAir
is planning to launch Go Cargo and Go Engineering
in the coming months. These will be a separate
entity from GoAir. The carrier also plans to
start its Chennai-Delhi-Chennai flight from
April to augment its existing Chennai-BangaloreHyderabad
flight, Jeh Wadia, managing director told reporters
here on Monday. The airline proposed to increase
the flights from Delhi and Kolkata in the coming
months. |
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GoAir
has recently tied up with the Board of Control
for Cricket for operating special flights to
Delhi, Goa, Cochin, Guwahati, Ranchi, Indore
and Mumbai as the official carrier of the Indo-England
ODI cricket series. Mr Wadia said a few tickets
would be auctioned to the public. Mr Wadia said
GoAir will have five more aircraft in operation
by the year-end and their target number is 33
by the end of 2008. |
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| Last month,
the air carrier placed an order with Airbus
Industrie for the purchase of 20 Airbus aircraft.
Some of them will be on lease with the rest
funded internally by the Wadia Group. Mr Wadia
said the airline plans to have two to four aircraft
per base station. |
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| The
BCCI |
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| March 21, 2006 |
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| The
Asian Age , Agencies, Mumbai: The BCCI
has announced that the Jeh Wadia promoted GoAir
will be the official carrier for the upcoming
India-England ODI series. |
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| GoAir
Is Official ODI Carrier |
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March 21, 2006
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| Hindustan
Times , Correspondent, Mumbai: BCCI has
announced that the Jeh Wadia promoted GoAir
will be the official carrier of the teams for
the upcoming India- England one-day international
cricket(ODI) series from April 1-16, 2006.
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| GoAir |
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| March 21, 2006 |
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| Business
Standard, Bureau, Mumbai: The Wadia Group-promoted
low-cost airline GoAir will start direct Srinagar-Mumbai
flight from April 6. The no-frill carrier has
also tied up with tour operator company Raja
Rani Travels to promote the sector.
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| Budget
Airlines Unite To Offer Better Service |
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| March 08, 2006 |
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The
Times Of India, Bureau, Mumbai: Low-cost
airlines in the country are in the process of
floating a commoninterest group to help tide
over infrastructure constraints and offer better
travel options to their passengers, said Jeh
Wadia, managing director of GoAir. At a press
conference, Wadia said that GoAir is in talks
with Kingfisher Airlines, Air Deccan, about
forming an association to pool in their resources
and take up their issues with concerned government
bodies. Though aviation market has been abuzz
with this news for a while, it is the first
time that an official confirmation has come
on the budget airline association. |
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| The
competition though, is in place. Taking on its
rivals in the low-cost market, GoAir announced
the launch of a customer awareness scheme, which
claims that the airline offers the lowest air
fares possible. The scheme—to be launched
on March 9— challenges passengers to get
an air fare lower than the one offered by GoAir.
However the catch is that, the scheme would
be applicable only for flights that leave 45
minutes before or after a GoAir flight.
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| It
Doesn’t Get Cheaper Than This: GoAir |
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| March 08, 2006 |
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The
Asian Age, Correspondent, Mumbai: The
Wadia family-promoted budget carrier GoAir on
Tuesday announced a new campaign aimed at reducing
consumer ticket transaction time and increasing
passenger load. The campaign called, ‘The
GoAir Challenge’, states that should customers
find an airline ticket lower than the price
of a GoAir ticket, the airline would reimburse
double the difference between the fares and
credit the cost of cancellation towards the
purchase of GoAir tickets. |
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"The campaign opens on March
9 and is applicable to commercial jet aircrafts
operating anywhere in India. The offer applies
to tickets available to the general public
and not through special schemes. This move
will ensure value for money and simplifies
shopping for airline tickets," said Mr
Jeh Wadia, managing director, GoAir. He added
that the airline business is a low-margin
business and no frills travel is about having
fun.
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The airline
currently operates three A320s with a single
class and is planning on inducting 20 Airbus
A320 family aircrafts in the next two years.
They also plan on expanding their fleet to 33
aircrafts by December 2008 and add five more
aircrafts to their fleet by the end of the year.
From April 3, 2006 the airline will operate
in 14 cities including Delhi, Srinagar and Jammu
with a total of 28 daily flights. "Plans
on GoCargo and GoEngineeering will be announced
in the next one month," added Mr Wadia. |
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| When asked
how he could afford the difference between the
prices coupled with the increase in cost of
jet fuel, Mr Wadia stated that the company had
"a deep war chest and that they were looking
at a 68 per cent load factor." He also
added that the new campaign was aimed at jet
aircrafts only since most competing airlines
operated them on routes common to GoAir. |
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| Quote
Of The Day |
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March 08, 2006
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The
Asian Age, Mumbai: “The GoAir challenge
offer applies to tickets available to general
public and not through special schemes. This
move will ensure value for money and simplifies
shopping for our airline tickets.”- Jeh
Wadia, Managing Director, GoAir.
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| Play Or Pay: Go
Air Throws Rivals An Open Challenge |
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| March 08, 2006 |
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The
Economic Times , Bureau, Mumbai, Page No - 6,
Position – Middle: The
battle for the low-fare customer has intensified,
with the Mumbai-based low-cost airline Go Air
challenging customers to find lower fares than
those offered by it. Three low-cost airlines,
Spice-Jet, Air Deccan and Go Air, currently
operate in the low-cost space. All three make
claims to be the cheapest and are battling to
woo the railway passenger. Go Air, promoted
by the Wadia group, is the smallest of the three
and operates with three Airbus 320 aircraft.
The airline has been offering 10,000 free tickets
every month in the four months since its launch,
claims MD Jeh Wadia. |
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Today, it launched
a new campaign that challenges customers to
find a better fare than that offered by Go Air
on a particular sector. If the customer is able
to find such a fare on a flight that takes off
within 45 minutes of the Go Air flight, the
airline will offer the passenger an amount that
is double the difference in the price between
the two. The traveller can use this amount to
book on Go Air and the airline will reimburse
the cancellation charges for its booking on
the other airline. |
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Mr Wadia
said there will be casualties in the war for
passengers. Those that fall by the wayside will
include those who mismanage their costs, he
said. Like Ryanair, airlines in India will also
have to look at ancillary revenues to be able
to offer lower fares. Go plans to raise revenues
with inflight sales and advertisements that
will crosssubsidise its low fares, he said.
The airline, 100% owned by the Wadia family,
is also looking at offers being made by private
equity firms that are keen to take a stake.
The group also plans to float two other companies
for cargo and engineering, Mr Wadia said.
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| GoAir Steps Up
Its Fleet Acquisition |
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| March 08, 2006 |
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| The
Free Press Journal, Bureau, Mumbai: Go
Air, Wadia Group company, launched in November
last year with 3 A-320 aircraft, will continue
its expansion through an acquisition of an additional
33 A-320 family aircraft, reports UNI. The fleet
acquisition is spaced over three year span,
funded through five different baskets of investments,
GoAir Managing Director Jeh Wadia told, reporters
here today. Elaborating on its plans, Mr Wadia
said one is to go for dry lease for short, term,
other baskets envisage acquisition of new aircrafts
on bom short term as well as long term basis. |
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| GoAir Scheme To
Keep Prices Low |
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| March 08, 2006 |
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Hindustan
Times, Correspondent, Mumbai: The
Summer holiday season is expected to see airfares
staying down thanks to the prevalent mood among
airlines to play the low fare-high volumes game,
especially with GoAir announcing a new campaign
called ‘The GoAir Challenge’ aimed
at increasing its load factor. “If the
price paid for the ticket bought on a competing
airline is lower than the price paid for GoAir,
we will adjust double the difference between
the fares which can be used to purchase GoAir
tickets. |
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GoAir
will also reimburse the cost of cancellation
of the other airline’s ticket as credit,
to purchase GoAir tickets,” said GoAir’s
Managing Director Jeh Wadia while announcing
the scheme that will be effective from April
9. The scheme will not apply on routes where
competing airlines run turbo prop aircraft like
ATRs.
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| GoAir May Tap
Pvt Equity To Purchase New Aircraft |
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| March 08, 2006 |
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The
Hindu Business Line, Bureau, Mumbai: GoAir,
which recently announced the acquisition of
20 Airbus aircraft, is considering various options
including private equity to finance the purchase.
Mr Jeh Wadia, Managing Director, GoAir, said,
"We have been receiving a number of enquiries
from private investors, but have not yet made
a final decision on the way to go." Mr
Wadia was speaking at the launch of the airline's
low-fares challenge that promises to reimburse
passengers, who book cheaper tickets on competition,
twice the difference between the fare quoted
by competitors and that available on GoAir.
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It also commits
to foot customers' cancellation charges. The
low-fares challenge, which commences on March
9, is restricted to routes operated by a jet
aircraft and for flights that take off soon
after or before a GoAir flight on a given sector.
According to Mr Wadia, the challenge aimed to
simplify the decision making process for customers,
currently requiring to choose between various
schemes such as the check fares and dyna fares
offered by airlines. |
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GoAir,
promoted by the Wadia family, operates with
three leased aircraft. It plans to have a fleet
of eight aircraft by the year-end, and 33 by
end-2008. The airline will expand its route
network from April with the launch of flights
on the Mumbai-Delhi, Mumbai-Srinagar, Srinagar-Jammu,
and Chennai-Delhi sectors, taking the number
of daily flights to 28. |
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Load factor on the airline is
currently at 68-70 per cent, Mr Wadia said.
He added that the airline was in talks with
a number of other low-cost carriers such as
Air Deccan, Kingfisher, and Indigo to create
an association, to air the industry's needs,
share engineering and technical services,
transfer passengers on each other's flights
in case of cancellations, and share Government
infrastructure where required.
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