Tuesday, June 25, 2019

We are learning from Jet Airways’ mistakes: IndiGo CEO’s take on Jet’s fatal move

Naresh Goyal-founded Jet Airways was too quick to jump in to acquire wide-bodied aircraft which “are inevitable but dangerous to implement at the present,” IndiGo’s Chief Executive Officer Ronojoy Dutta told CNBC TV18 in an interview. Speaking about the now-grounded airline and the aviation industry in general, Ronojoy Dutta said: “The airline is a very unforgiving industry and there are many paths to failure, only a few paths to success,” he said, adding that the Jet Airways is a good case study in that issue. While Jet was doing great when they focused on the narrow-bodied planes, its next step of deploying wide-bodied aircraft with a fragmented fleet was probably a mistake, Ronojoy Dutta told the news channel. Lots of money is lost very quickly when wide-bodied fleet is employed per trip, he added.

The CEO said that IndiGo is learning from the mistakes made by Jet Airways. The airline which eyes international skies for expansion will deploy narrow-bodied aircraft and the international plans do not include the wide-bodied aircraft, for now, IndiGo CEO told the news channel. “We will expand internationally but carefully, cautiously and will not make the same mistakes,” he added.

The recently-appointed top executive at IndiGo — India’s largest domestic carrier — also said that the airline has plans to go to neighbouring countries China, Myanmar and Vietnam. “We want to be a global player,” he said. Also commenting upon the aircraft pricing, Ronojoy Dutta said that in the aviation industry, buying aircraft at the right price is very important. Getting stuck with high-cost aircraft is an issue, Dutta said.

While Air India was expected to become the national airline and cater to international destinations as well, it has not shown promising results. “India does not carry its traffic. The international traffic is gobbled by Thai, Lufthansa etc. What Air India was supposed to do in being the national airline of India and carrying the international traffic, it has not worked,” Ronojoy Dutta said. IndiGo hence looks to step into that and expand its market share internationally, he added.
25/06/19 Financial Express
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