 "Indigo")
Despite the news of Go First grounding its operations, the management of IndiGo, Indigo is in no hurry to expand its capacity, reports The Economic Times (ET).
Speaking at a post-results earning call, IndiGo's Chief Financial Officer Gaurav Negi said they would add 45-50 aircraft to their operations in the financial year 2023-24 (FY24). This is no more than the original plan given on March 23, the report said.
Previously, in 2019, when Jet Airways brought down curtains, IndiGo had added 45 aircraft to its fleet. Reportedly, Go First grounded its flights on May 3, which has created a vacuum in this space. When operational, Go First catered to 7 per cent of the market.
Citing data from Cirium, a firm that collates data on aviation analytics, ET reported that Go First had higher traffic on leisure destinations such as Srinagar, Leh, and Goa. The discontinuation of Go First's operations has resulted in a steep airfare hike on these routes.
Industry experts said that this is a result of the supply chain shortage in global aviation, which has caused delays in introducing new aircraft. Moreover, Go First has been unable to operate 35 of its aircraft due to the unavailability of engines from Pratt & Whitney. Experts believe improving engine supply can ease the situation and support capacity addition.
Citing sources, the ET report said that IndiGo would likely postpone its launch in Tashkent, Baku and Tbilisi to cater to the rising domestic demand.
