IndiGo embarking on next level of growth, cost leadership crucial: CEO

IndiGo is embarking on the next level of growth and cost leadership is crucial for the airline, its CEO Pieter Elbers said on Monday.

Currently, IndiGo operates around 1,800 daily flights and has a fleet of more than 300 aircraft.

"We are embarking on the next level of growth," Elbers said at a session of CAPA India aviation summit in the national capital.

He noted that the V-shaped recovery of the country's aviation sector has been a part of learning.

After being significantly hit by the coronavirus pandemic, the aviation sector is on a strong recovery path and the domestic air traffic has almost touched the pre-pandemic levels.

 

Noting that affordable fares are important, Elbers said maintaining cost leadership is crucial.

The low cost carrier is the country's largest airline with a market share of more than 55 per cent. Responding to a query, Elbers said Indian aviation will move towards more sustainable finance, adding that there is more stability in the market.

The airline is focusing on internationalisation of operations. It plans to start flights to Nairobi, Jakarta and some central Asian destinations.

A shortage of aircraft is hampering IndiGo airline operator Interglobe Aviation Ltd's efforts to ride a travel boom in India and globally, Chief Executive Officer Pieter Elbers said on Monday.

"There's an opportunity in the markets where we would like to serve our customers and we cannot do it yet to the extent we would like to do that," Elbers told Reuters in an interview, citing pressure from the shortage of aircraft supply.

India's aviation market is booming as demand for air travel picked up pace from the pandemic lows. However, given the global demand for new planes Boeing and Airbus are scrambling to meet the overflowing orderbook.

"A year ago, our operation in terms of size was probably half of where we were. So we have put all our emphasis in moving back to 1800 flights per day."

IndiGo has an orderbook of 500 aircraft, which would give the airline "a steady flow" of deliveries until the end of ths decade, Elbers said.

Aviation consultancy CAPA India has said it expects at least 1,300 more orders from Indian airlines in the next one to two years, weeks after Air India announced a record order for 470 jets.

IndiGo, which has until now been an exclusive buyer of narrow-body jets from Airbus, is in talks with Boeing, too, to smash Air India's record with an order for more than 500 passenger jets, industry sources told Reuters earlier this month.

The airline has so far ordered a total of 830 Airbus A320-family jets of which over 400 have yet to be delivered.

Elbers said the delivery trajectory of the A321 XLRs, Airbus' newest and largest narrowboy airliner, is "all work in progress".

"We haven't finalised that one yet".