Friday, October 26, 2018

Doubling down: IndiGo airline to expand, defend turf despite loss

New Delhi: India's largest domestic airline, IndiGo, will add 30 per cent capacity this financial year to maintain dominance of the world's fastest growing aviation market, although its parent company has just recorded its first quarterly loss since listing.

The clear market leader with 189 planes and a 43 per cent share is unwilling to cede ground to rivals like Jet Airways Ltd and SpiceJet Ltd, Chief Commercial Officer Willy Boulter said.

"We are keen to protect our market share," he said in an interview.

The airline has said it plans to add to its fleet of Airbus SE A320neos and ATR 72 turboprops at a rate of around 6 planes a month.

Fares fell almost 10 per cent in the last quarter but any unilateral increase would be outweighed by the number of passengers the airline would lose and that would hurt revenues and Indigo's long-term position, Boulter said.

India's aviation market is growing at 20 per cent annually, but a combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have driven carriers into the red.
26/10/18 New Indian Express

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