IndiGo vows to fly the ‘no gimmicks’ route

Bangalore: It’s a sustainable growth that the newest budget carrier IndiGo is looking at as it chalks out plans to become a 15-aircraft airline flying to 18 destinations by 2007-end. By 2010, the carrier wants to reach 30 cities with a fleet of 40 A320s on an operating margin of 10%.
The airline currently operates three aircraft to eight destinations. “If fuel prices and competition do not come in the way, we will be able to reach an operating margin of 10% by 2010,” says IndiGo president and CEO Bruce Ashby. And he wants to reach healthy margins through economies of scale.
The airline, which began operations in August, is currently operating at an average load factor of around 78%, up from 65% in the beginning.
Even its average fare has improved from around Rs 2,000 in August to around Rs 3,000 now. Ashby says that, on an average fare of Rs 3000, the airline would need 80% load factor (on A320) to break even.
10/10/06 Praveena Sharma/Daily News & Analysis

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