IndiGo is in talks with three to four more global carriers for operational alliances and expects to have 12 in the next two to three years, according to its CEO.
“On this, the math is quite straightforward,” Ronojoy Dutta explained.
“As you are aware, we have a strong domestic presence.
So, if an airline lands in Bangalore, 50% of its customers will transfer to another flight.
They’ll take IndiGo to Mangalore or Vizag, or somewhere else.
IndiGo is the best person to transport them.”
Later this year, Dutta will step down and be replaced by Pieter Elbers, the former CEO of Dutch airline KLM. Elbers' appointment demonstrates IndiGo's worldwide ambitions yet again.
IndiGo is also developing its cargo operations, which are growing at a similar or faster rate than its passenger business, while accounting for a small percentage of revenue.
Airbus has been contracted to convert four A321s into freighters for the airline.
All four planes were supposed to arrive this year, but two have been delayed, according to Dutta, who did not elaborate.
Cost pressures are increasing, but the airline’s revenue is at its highest level ever, he said.
However, demand is still significantly lower than pre-Covid levels, albeit being better than during the pandemic.
In April, IndiGo’s capacity – or number of flights/seats – was 2% lower than pre-Covid levels, while overall passenger count was 7% fewer. However, income increased by 12%.
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