IndiGo CEO expects domestic aviation to bounce back to Feb-2021 levels by Dec1 min read . Updated: 07 Jun 2021, 08:40 PM IST
- The airline plans to expand aggressively both domestically and internationally once this pandemic is over
India's largest domestic carrier InterGlobe Aviation Limited-operated IndiGo hopes for the domestic aviation market to bounce back to February-2021 levels by July-December 2021 period, while it expects international recovery to happen by March 2022.
In a post result call to analysts on Monday, IndiGo's chief executive Ronojoy Dutta said that he expects the domestic aviation market to bounce back to February 2021 levels by Q2-Q3, FY 2022 while expecting a recovery in international travel by Q4, FY2022.
The airline also plans to expand aggressively both domestically and internationally once this pandemic is over.
"So, in the pre-COVID period we were expanding international (flights) aggressively and international (flights) was accounting for 25% of the total capacity. It also had higher margins than domestic so highest growth, higher margins, which is a wonderful combination to have," Dutta said adding that he hopes to continue with the growth plan in international segment by connecting destinations that are six to seven hours away from major Indian cities like New Delhi, Mumbai, Chennai, Bangalore and Kolkata, among others.
"Our fleet is in place to do that. So as soon as this COVID crisis is over, we plan to sort of restore our original growth path in terms of international, and let me say that we talk about this wide-body competition decreasing especially during this COVID we are getting charter demand from such you sort of esoteric places, if you will, which is giving us a very good sense of the traffic, which was being carried before one-stop to other hubs, which we can now carry nonstop," Dutta added.
Meanwhile, Dutta said that IndiGo is consistently against any kind of government regulation on fares and capacity. The government currently has a fare band in place and has also restricted maximum operable capacity of airlines to 50% from 1June.
"And looking ahead to July, we are scheduling exactly 50% of capacity. So we are going up a limit and again, we've written to the Ministry that hey, we'd like to go higher. So we are just hoping that the government will stay true to which way and on July 21 they will remove the capacity restrictions," Dutta added.
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