Airbus said close to US$7.5b A320neo deal from GoAir

[FARNBOROUGH] Airbus Group SE is in discussions with Go Airlines India Pvt about the purchase of about 70 A320neo planes worth around US$7.5 billion at list prices, according to people familiar with the situation.

An announcement could come as early as this week at the Farnborough Air Show in England, though talks may extend further into the year, said the people, who asked not to be identified because the negotiations are ongoing.

GoAir is one of only three carriers that have begun operating the revamped Neo version of Airbus's single-aisle jet, so that a follow-on order would provide a vote of confidence in a model that's been dogged by issues with its Pratt & Whitney turbines since last year.

The Indian carrier already has a contract for 72 A320neos, two of which have been delivered, after announcing a deal for the jets in 2011.

The new batch would again use Pratt engines, rather than a competing powerplant from CFM International alliance of General Electric Co and Safran SA, according to the people.

BLOOMBERG