Indian low-cost carrier GoAir has placed a firm order for 72 Airbus A320neo aircraft worth $7.2 billion at list prices.
The airline expects to take delivery of them from 2015 and complete it by end-2020, said managing director Jeh Wadia. An engine selection between the CFM International Leap-X and Pratt & Whitney PW1100G has not been made, he added.
Another 10 options for regular A320s have been firmed up, and these will be delivered over the next 18-24 months, said Wadia. GoAir's existing fleet comprises 10 A320s, and the orders will significantly boost its presence in the growing, yet highly competitive, Indian domestic low-cost market.
Its main competitors are the larger carriers IndiGo and SpiceJet. IndiGo operates a fleet of 39 A320s and, in January, ordered 150 A320neo and 30 regular A320s. SpiceJet has a fleet of 30 Boeing 737-800/900s, with another 33 due to be delivered. It has also ordered 15 Bombardier Q-400 turboprops.
GoAir intends to use its aircraft to grow its domestic network, saying that this remains "underserved".
"India will remain underserved beyond 2020, so (GoAir's) focus will be on the domestic market," said Wadia. "India offers a very huge opportunity. China has 1,100 aircraft, while India has only 350."