Thursday, January 11, 2007

GoAir plans to sell 26% to strategic investors

Mumbai: The Wadia group-promoted low-cost airline GoAir is planning to sell 20-26% stake to a group of strategic and financial investors. GoAir managing director Jeh Wadia told ET: “The airline is currently in negotiations with the shortlisted investors and expects to close the deal in a few months.”
The exact quantum of divestment will depend on the quality of the offers, he said. The airline currently has a fleet of seven A320 aircraft with 20 more on order. The offers on the table are difficult to ignore, though the airline will look for strategic partners who bring in more than just cash, Mr Wadia said.
The interest in the airline industry is despite the fact that domestic carriers been burning huge amounts of cash over the past year, which has seen big capacity additions from all eight airlines in the business. The airlines are collectively expected to lose about $300 million by the end of the financial year.
11/01/07 Economic Times