Sunday, April 25, 2021

GoAir Bets Big On Ultra-Low-Cost Carrier Model To Consolidate Market Position

As the airline sector grapples with the second Covid-19 wave, the Wadias-promoted GoAir has set its sights on a major expansion drive in terms of network and aircraft fleet and is betting big on its ultra-low-cost carrier model to consolidate its position as one of the few Indian airlines making profits in a highly-competitive and cost-intensive market.

"While the sector is facing temporary headwinds, we at GoAir believe that the airline is uniquely placed with its inherent ultra-low-cost structure that has always stood us in good stead," its CEO Kaushik Khona told PTI in an exclusive interview.

In March, founder Jeh Wadia from the promoter family stepped down from the company's management. The airline also announced the elevation of Ben Baldanza, a global airline professional as vice-chairman. Mr Badlanza has been accredited with reviving and taking public Spirit Airlines in the US.

There have also been talks that GoAir has been on course to raise funds to fuel its expansion.

Mr Khona said he remains confident that the ULCC (ultra-low-cost carrier) model will set GoAir on a unique growth route.

"At GoAir, we are confidently moving ahead, thanks to our ULCC model," he said.

Mr Khona said the ULCC model involves single aircraft and engine type, with common buyer-furnished equipment that provides the lightest and most cost-efficient high-density seating of 186 for its Airbus A320 neo aircraft.

"All this helps to keep our operations simple and overall cost structure low, along with a common skill set for pilots and the engineering team, among other training requirements," Mr Khona said.

25/04/21 PTI/NDTV

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