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

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

How India is being pushed towards commercialization of higher education

The reluctance of the present dispensation in pushing the higher education towards commercialization is not just limited to the fees hike in Jawaharlal Nehru University JNU. It seems the government is gradually implementing a plan which is ...

Videos

Latest News

UPDATE 2-Britain's fraud office opens investigation Glencore

Britains Serious Fraud Office SFO has launched an investigation into Glencore concerning suspicions of bribery, the company said on Thursday. Glencore, one of the worlds biggest commodity traders, is already subject to a U.S. Department of ...

Pelosi OKs drafting of impeachment articles against Trump

Washington, Dec 5 AP House Speaker Nancy Pelosi announced on Thursday that the House is moving forward to draft articles of impeachment against President Donald Trump. Our democracy is what is at stake, Pelosi said. The president leaves us ...

Minor Dalit girl alleges gang-rape, says she is pregnant

A Dalit family in Rajasthans Baran has alleged that their minor daughter got pregnant after being gang-raped for three days in October, police said. The girl, in her complaint, has named five men- Aslam, Sohail, Jalal, Kekda and Jegra.The g...

Odd News Roundup: Santa Claus dives into hot climate issue in Paris aquarium

Following is a summary of current odd news briefs.Santa Claus dives into hot climate issue in Paris aquariumIn a change of scene, Santa Claus is donning flippers and a diving mask along with his traditional red-and-white outfit to scuba div...

Give Feedback