Business

GoAir places Airbus order as Indian market expands

Jeh Wadia
Image caption The airline's managing director Jeh Wadia said GoAir may take 15 planes each year

Indian budget airline GoAir has ordered 72 new A320 Airbus aircraft in a deal worth about $6.1bn (£3.7bn) at list prices.

The carrier said it would start taking deliveries of the aircraft in 2015 as it implements ambitious expansion plans for domestic routes.

A320s are priced at $85m each, though airlines traditionally negotiate big discounts on bulk orders.

In January, rival airline IndiGo ordered 180 A320s, worth $15.6bn.

"These are all firm orders and the deliveries will start in 2015. We may take as many as 15 planes each year," said the company's managing director Jeh Wadia.

India's airline market is booming as flights become affordable to ever more people.

There have been reports that Indian airlines are planning to announce billions of dollars worth of orders at next week's Paris Air Show.

GoAir, launched in 2005, currently serves 18 destinations with about 930 flights a week.

The airline is owned by the Wadia Group, which has interests in petrochemicals, electronics, property, and consultancy.

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