IndiGo sees opportunities despite challenging industry conditions: CEO

IndiGo sees a lot of opportunities and will navigate through the challenges in the industry, its CEO Willie Walsh said on Monday as he emphasised the airline's focus on excellent cost base.

At his first in-person briefing after taking charge as CEO in August, Walsh said the airline expects to start getting the wide-body A350 aircraft from the second quarter of 2028.

The airline has all the ingredients to succeed in the long haul market, he said.

Against the backdrop of rising fuel costs roiling profitability of airlines, Walsh said the situation is challenging for the industry and IndiGo will navigate through the challenges.

 

In the September quarter, IndiGo reported a loss of Rs 1,879.1 crore as higher fuel costs and rupee depreciation roiled the profitability. Amid the headwinds, the airline had also reduced the capacity.

"We see incredible opportunities," he added.

About the Navi Mumbai airport, Walsh said the airport provides a big opportunity for it and that the decision to partly shift international flights was taken in the airline's interest.

Walsh also said the airline always looks for better value from the airports.

"We will continue to look for them to be much more competitive when it comes to pricing given that they are effective monopolies," he said.

 

During his tenure as the Director General of global airlines' grouping IATA, Walsh had strong views about airport charges and taxes in India.

 

In response to a question from PTI on his current view, he said, "I have not changed my view".

 

"Airport charges are too high and so this market would do much better if we had lower taxes. So lower taxes, lower airport charges, that is the way forward.

 

"... I think to be honest with you, the opportunity to expand in India, we require everybody to be focused on their cost base," he said. IndiGo operates over 2,100 flights daily and currently has an operational fleet of over 400 aircraft. IndiGo is the country's largest airline with a domestic market of over 65 per cent and operates around 2,200 flights daily.