GoAir denies merger talks with SpiceJet, says expansion on track

New Delhi, March 25 (IANS) Denying reports that the company was in talks with budget carrier SpiceJet for a possible merger, low-cost operator GoAir Wednesday said its expansion plan was on track despite bad market sentiments.

'We are not looking at any kind of consolidation or merger with SpiceJet or any other airline. It's one of many rumours,' GoAir chief executive Edgardo Badiali told reporters here.

Earlier this month, there were media reports that both GoAir and SpiceJet were looking for consolidating operations or even a possible merger.

The Indian aviation sector has seen three major mergers since 2007 - Jet Airways-Air Sahara, Air Deccan-Kingfisher and Air India-Indian Airlines.

The airline, which currently operates a fleet of four A320 Airbus, last month bought two new aircraft as part of its expansion plans.

It will add 18 more aircraft by 2012.

'The funding for the first 10 aircraft has already been made while we are exploring options for finance for purchasing 10 others',' Badiali said.

An A-320 airbus costs about Rs.200 crore ($40 million), he added.

GoAir will take the delivery of two more aircraft by June-end this year and two more by the year-end.

The company is also planning route expansion. GoAir has already added new destinations namely Bangalore, Chandigarh and Amritsar, Badiali said.