After placing one of the world's largest orders for 100 aircraft, start-up low-fare carrier IndiGo Airlines on Wednesday said it would launch its domestic services this winter and have a fleet of eight planes by 2006.
"We will be airborne between this November and February next year ... we will launch our first flight in a few weeks after we get the delivery of our first aircraft. Internally, we will be ready to fly much beforehand," Rahul Bhatia, co-owner of the airline, told PTI in New Delhi.
IndiGo Enterprises recently stunned the world by placing one of the largest firm orders for 100 A-320 aircraft with European manufacturer Airbus Industrie, with a list price of over $6 billion at the Paris Air Show.
Asked whether they would lease planes to start their operations, he said there could be a "bridging arrangement" with a lessor to provide them with the aircraft in case of delay in delivery of their own planes.
"However, we would prefer to fly our own aircraft", Bhatia, managing director of travel firm InterGlobe Enterprise who owns the airline company along with top aviation expert Rakesh Gangwal, said.
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IndiGo, which received its no objection certificate from the government to launch scheduled services last April, would get eight aircraft by the end of 2006, nine more in 2007 and induct one each every month after that, he said.
On its route network, Bhatia said the low fare carrier would "connect every possible city having economic demand for single aisle large aircraft ... There are several non-metro routes also which will have great demand. Our network, therefore, will be a mixed bag".
The IndiGo would be a low fare airline, which would be "clearly committed to providing the highest level of customer services. You can rest assured that we will provide world class product", though food and beverages would be on sale inside the flight.
Asked as to when they would sign the purchase agreement with Airbus Industrie to acquiring 100 A-320s, Bhatia said the airline had already initialled the letter of intent. "The purchase agreement is being studied by the lawyers. We will be signing it in a couple of days".
On the funding pattern of the airline and its fleet, Bhatia said the initial capital, worth about Rs 370 crore (Rs 3.7 bilion), would be funded entirely by the InterGlobe Enterprise and Gangwal, who has headed several international carriers like United Airlines, Air France and US Airways and is now the chairman and CEO of Worldspan Technologies Inc.
Regarding the financing of the 100 aircraft, he said the oft-quoted price of $6 billion was based on the list price, "but the price we will pay is lower than that".
He said the entire order was spread over eight to ten years and "we have to put in ten to 15 per cent as down payment per aircraft."
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Regarding shortage of pilots in the country, Bhatia said, "we are working on a unique solution" but refused to divulge details. "We will do our utmost not to get involved in poaching because it is not a sustainable strategy".
However, in reply to questions, he said the airline would begin by "importing" senior pilots or commanders in a "significant proportion" in the first three years.
To a question about constitution of the airline's board, Bhatia said it would be constituted in the "next few months" and would "represent the pinnacle of the Indian industry. There will be well-respected individuals who will bring distinct value to the airline".
Bhatia said the deal for 100 aircraft was finalised much before the Paris Air Show after going through weeks of negotiations with Airbus and Boeing.
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