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IndiGo rules out fare hike

Last updated on: August 25, 2011 15:22 IST

IndigoLow cost air-carrier IndiGo Airlines has said it will allocate almost 16 per cent of its fleet capacity to international operations by March next, while ruling out any hike in fares in the near term.

"By next March, that is the first six months of our international operations, we will be dedicating 15-16 per cent of our total aircraft capacity to international operations.

"Hopefully, this would be profitable too.

"By next March we should have about 55 aircraft," IndiGo president Aditya Ghosh told reporters on the sidelines of a Ficci-IBA summit in Mumbai late Wednesday evening.

Asked whether he is planning to up fares in the run-up to the festive season, Ghosh replied in the negative.

"I don't believe in fare hikes. I just believe in lots more people flying and being a profitable airline," he said.

On the rationale for entering international route, Ghosh said he sees a 'massive' demand in these markets.

"Not a single Indian low fare carrier flies through these routes. So we see a massive demand and a gap in these markets. We hope to repeat the same thing that we have done in the domestic sector in these markets too: keeping our offering simple and offering low fares," Ghosh said.

We believe there is demand for international travel out of the country. As long as demand is there we will chase that market whether it is domestic or international, he said.

Ghosh also said the low-cost carrier will be deploying A-320s on its international routes.

The airline is currently operating on the Delhi-Dubai, Mumbai-Dubai, Delhi-Singapore and Mumbai-Muscat routes.

"Basically we are going to look at the Southeast Asia and West Asia as our territory.  That's why Dubai, Bangkok, Singapore and Muscat will be our first few sectors as there is a large number of Indian population in these markets," Ghosh said.

He also hinted at connecting these international markets with the major Southern markets beginning from Kerala.

"We would love to add one or two more flights on the same sector. And then probably add Jeddah and Kathmandu to this. It is the Middle East, Southeast Asia and Asia (that will be our priority)," he added.

At a time when the aviation industry is witnessing growth in attrition, Ghosh said the trend is non-existent as far as IndiGo is concerned.

"We are going to create 1,000 more jobs in the next one year. Our focus is on more job opportunities," he said, adding there is no attrition at all now. "My attrition rate currently is down to zero," he added.

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