GoAir targets huge capacity increase

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Indian low-cost carrier GoAir is planning to increase domestic capacity by 21% out to March 2015, adding further competition to a challenging market.

Chief executive Giorgio De Roni told the Press Trust of India that the airline will offer an additional 8.5 million seats this fiscal year under its Vision 2015 strategy.

"Vision 2015 entails offering customers the most attractive and sustainable fares; high aircraft utilisation, an efficient cost structure and further strengthening of services between metro airports and tier II and tier III cities, particularly to those markets that have consistently grown at remarkable rates in the recent years," he was quoted as saying.

GoAir is the smallest of the established low-cost carriers in India, with a fleet of 19 Airbus A320s. Flightglobal’s Ascend Online Fleets database shows that it will receive one more A320 in July, and it also has 72 A320neos on order.

De Roni adds that the airline is also looking at leasing opportunities to continue to grow its fleet before the neos start arriving from 2016.

Flightglboal contacted GoAir for more details but did not receive a reply at the time of publishing.

With the delivery of the A320 this year, GoAir will meet India’s 20 aircraft fleet and five year operating history requirements, allowing it to launch international services.

De Roni previously told Flightglobal that the airline would look to fly to destinations in other countries around the Indian subcontinent, but added that the focus for the airline will remain on the domestic market.

Privately-owned GoAir is expected to be squeezed by the entry of AirAsia India into the budget segment of the domestic market. AirAsia India, which is a joint venture between AirAsia, Tata Sons and Telestra Tradeplace, will launch its first services on 12 June between Bangalore and Chennai and Goa.