IndiGo has no plans for acquiring some airline that will dilute its marketing model
With its below-price arrangement and wide network, IndiGo can withstand any opposition, the airline’s chief executive officer (CEO) Ronojoy Dutta said on Tuesday.
Ronojoy Dutta said
Dutta said IndiGo has no plans for acquiring another airline that will dilute its business model and distract the authority offerings.
- He said this at the company’s annual general meeting on Tuesday while answering shareholder queries on opposition from Rakesh Jhunjhunwala-backed proposed airline Akasa and plans for acquiring airlines like Jet Airways.
largest domestic airline
Dutta said IndiGo is unique and well-positioned with a low-cost structure, extensive network, and connecting traffic, which helps it fill up flights.
“We are world-class in terms of service, too. It is tough for competition to beat IndiGo,” he added.
- IndiGo is the most extensive domestic airline with over 58 percent market part and a fleet of 277 aircraft as of June achievement.
It posted a loss of Rs 5,806 crore in FY21 and Rs 3,174 crore in the first division of FY22 as its market was seriously affected by the two waves of the pandemic.
While competition is set to intensify in the Indian atmosphere with the launch of two airlines, IndiGo’s management continues unfazed.
Dutta said the airline has managed to reduce cash burn through cost-saving initiatives and increased liquidity by around Rs 6,600 crore last year.
Cargo and charter flights
Cargo and charter flights, too, are helping the growth with engaging margins, he added.
- Dutta said the airline is seeing a gradual return in traffic and working over a thousand flights every day in August.
He expects domestic traffic to reach pre-Covid amounts by December and international traffic to return to pre-Covid levels by near July.
source: Business standard