At a time when the Indian civil aviation sector is consolidating with a host of takeovers and mergers, the airline IndiGo has said it would go it alone without seeking any strategic investor for the time being.
IndiGo intends to expand its network while maintaining its existing low cost fare structure. “Our overall fare structure probably won’t change much. Unlike some of our competitors, we don’t offer seats for free, or fares of one rupee,” IndiGo’s CEO Bruce Ashby told Hindustan Times.
“At best, we may raise our average fares a little across the board, perhaps by Rs 100 or Rs 200,” he added.
Undeterred by full service carriers Jet Airways, Kingfisher Airlines and Paramount Airways aggressively looking at enhancing market share through acquisitions, Ashby said, “Just because the names painted on our competitors’ airplanes change, we are not going to be affected. Our expansion plans, our fares, our operation, our service remain the same.”
On the dominating market share of more than 80 per cent of the domestic passenger traffic by Jet-JetLite, Kingfisher -Air Deccan and the Air India-Indian combine, and the question mark over the survival of smaller players, Ashby said market share was never a good predictor of financial success in aviation.
He said IndiGo would breakeven in mid-2008 and by 2008 end would have 23 aircraft in its fleet. The airline would keep increasing the number of flights between the 14 cities it currently serves and will selectively add additional cities. It does not have any plans to fly overseas, he added.