Monday, August 27, 2012

NEWS | United Technologies Finance to fund GoAir's A320 neo aircraft’s pre-delivery

United Technologies Finance, part of the USA-based United Technologies Corporation, will fund GoAir for the pre-delivery payment of the 72 A320 neo aircraft worth Rs 32,400 crore. Giorgio de Roni, CEO, GoAir (India), said that United Technologies will provide the airline with significant amount of funding. Once it is in place, the airline will go in for a
sale-and-lease-back arrangement, according to a report by K Giriprakash and Ashwini Phadnis in The Hindu Business Line. The deliveries are expected to start from 2016. Roni said that GoAir could go in for an initial public offering, but it would depend on when the Indian government allows Foreign Direct Investment (FDI) in the aviation sector. High taxes on fuel as well as airport services make it unviable for any airline in India to adopt the low-cost model, Roni added.



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