Left Menu
Development News Edition

'Golden age' for Indian aviation sector; fundamentals strong: IndiGo chief


'Golden age' for Indian aviation sector; fundamentals strong: IndiGo chief
Representative Image Image Credit: ANI

With strong fundamentals, India's civil aviation sector is in its "golden age" and there is also healthy competition among domestic carriers, IndiGo CEO Ronojoy Dutta has said. Interestingly, the country's civil aviation sector has been experiencing lower growth in traffic compared to previous years and there has also been softness in fares in October, according to industry experts.

The traffic grew just 1.18 percent in September, as per the latest available official data. IndiGo, owned by InterGlobe Aviation, is the country's largest airline with a market share of 48.2 percent in September.

While acknowledging that there are problems, including high taxes on jet fuel, Dutta said there are huge opportunities going forward. "We are in the golden age of Indian aviation and there are huge opportunities going forward... There are always problems, there are always issues and economic cycles. (But) The fundamentals are strong," he told PTI in an interview.

According to him, tax on aviation turbine fuel (ATF) is 30 percent higher than the rest of the world. Bringing ATF under the Goods and Services Tax (GST) has been a long pending demand of the airline industry.

"Then there are throughput charges for which we should be getting credit for taxes paid," he added. IndiGo has been aggressively expanding its operations and has started 11 overseas routes in the last year. Recently, it placed an order for 300 more planes from Airbus and is also considering wide-body aircraft for long haul routes.

On whether there is healthy competition among local carriers, Dutta replied in the affirmative. "We have a commonality of interests. Airlines around the world have commonalities (of interests). It extends to ATF taxes, infrastructure issues. In terms of who gets which rights and who flies where, it is all fierce competition," he noted.

He also made it clear that there are no plans for a loyalty program for passengers. "We have studied it. We have rejected that option... It is too expensive. We are a low-cost carrier and we have to keep our costs low," Dutta said.

When asked whether passenger volumes could balance the costs arising out of a loyalty program, the IndiGo chief replied in the negative. "We have the volumes already. The question is will the incremental volumes pay for it. Given the cost, the incremental volumes do not pay it," he noted.

In September, the carrier flew 55.59 lakh passengers.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

Beer celebration costs Ravens CB Peters $14K

The beer that Baltimore Ravens cornerback Marcus Peters shotgunned after jumping into the stands to celebrate a victory over the Buffalo Bills last Sunday turned out to be an expensive beverage. He has been fined 14,037 for unsportsmanlike ...

Darts-Van Barneveld loses in his farewell world championships

Darts great Raymond van Barneveld lost the final match of his garlanded career, bowing out in the first round of the PDC world championships at the Alexandra Palace on Saturday. The Dutchman, who won five world titles in the BDO and PDC ove...

Redskins place WR Richardson on IR

A disappointing season for Washington Redskins receiver Paul Richardson ended on Saturday when the team placed him on injured reserve. Richardson has been dealing with a hamstring injury and missed three of the past four games. He was also ...

Esports-Slovenian gamer wins a seat on McLaren Shadow team

Slovenian student Kevin Siggy Rebernak secured a place on the McLaren esports team on Saturday after emerging from hundreds of thousands of entrants to win the Shadow Project final.The 21-year-old, who is studying game design, beat five oth...

Give Feedback