GoAir bets big on tourist traffic

BANGALORE: The Wadias-promoted GoAir intends to fly high on tourism. The low-cost airline has forged a strategic pact with Kerala State Tourism Development Corporation (KTDC) for a big share of the state’s tourist traffic. Under the arrangement, GoAir will be the preferred airline for KTDC.

It will work with the Kerala government undertaking and a logistics company, Intersight, for a GoKerala initiative to encourage domestic tourism to the state.

“This is part of our plan to unleash at least one big marketing initiative every month,” GoAir managing director Jeh Wadia told ET. Besides continuous joint promotions, the airline will have special counters in all KTDC hotels.

Mr Wadia said GoAir could end FY07 with a market share of 6%. “We may be there at our current momentum, and if the sector remains to grow at present level,” he added. “We are currently at 4% share and has a load factor of nearly 80%,” he said.

GoAir began the ongoing financial year with 2% market share, against SpiceJet’s 6% and Kingfisher’s 7%. “We have started operations on the Delhi-Mumbai routes twice daily, and that has made a difference,” Mr Wadia said.

Meanwhile, GoAir has received several investment proposals as it looks to raise funds for expansion.

“We have asked Morgan Stanley to advise on these proposals. The airline would look at raising funds through both debt or equity,” he added.