GoAir plans to raise $100 million

MUMBAI: Wadia group-promoted budget air-carrier GoAir is in the process of raising around $100 million to fund its aircraft acquisition programme, airline sources said on Tuesday. The airline is currently in talks with financial institutions and a deal is expected to be arrived at over the next 2-3 months, they said. GoAir, which currently has 10 Airbus A-320s in its fleet, plans to take delivery of another 10 aircraft over the next three years.

“We are negotiating with some banks and financial institutions to raise around $100 million (around Rs 400-500 crore), both in India and abroad,” said the sources close to the development. The airline, however, is still evaluating the instruments to raise the funds, they said, adding “a decision on the issue is likely to be taken shortly”.

The resources raised would be utilised to fund the aircraft acquisition plan. “The airline expects to complete the fund-raising exercise latest by January next year,”sources said. With the growth in aviation sector picking up after a two years of recession, the airline in July had advanced the delivery of 10 planes, the orders for which it had placed with Airbus in 2006.