Thursday, May 21, 2009

Achieving overall efficiency is key

Mumbai: These aren’t the best of times for India’s aviation sector. It was pounded last year by steep jet fuel costs and high fares that kept passengers out. The global slowdown followed, forcing airlines to delay expansion plans, cut routes and trim staff and salaries. GoAir faced the same hurdles, but not so much the fallout.
Innovating: Jeh Wadia says it’s time for GoAir to rebrand its look and feel to reflect a more formal undertone. Hindustan Times
Innovating: Jeh Wadia says it’s time for GoAir to rebrand its look and feel to reflect a more formal undertone. Hindustan Times
When Jehangir N. Wadia, better known as Jeh Wadia, launched the low-fare airline in 2005, at the peak of the aviation boom in the country, he decided the airline needed a gradual take-off, but with a flexible fleet and a business class, unique for low-fare carriers. That approach, he says, has paid off now.
The airline is increasing its fleet size, adding routes, revamping its management and hiring staff as planned, though it has had to put on hold its proposed cargo airline and an aircraft engineering and maintenance business. Wadia, managing director of GoAirlines (India) Pvt. Ltd, even expects the company to turn profitable next year. Edited excerpts:
GoAir was the first to introduce a flexible fleet plan in India. Later on, we saw full-service carriers too following it in the backdrop of the economic slowdown. How did it help you? Or did it hurt you since GoAir is a low-fare carrier?
Low-cost carriers in India do not enjoy low-cost privileges in the true sense of the word from an operational perspective. In India, low-cost carriers pay the same amount of money for airport usage as the full-service carriers.
21/05/09 P.R. Sanjai/Livemint
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