1. IndiGo does not chase market share, says Aditya Ghosh

IndiGo does not chase market share, says Aditya Ghosh

Profitable no-frills airline IndiGo today said it does not chase market share or load factor as priorities even as it continues to corner more than one-third of the total domestic air passenger traffic.

By: | New Delhi | Published: October 21, 2015 9:18 PM
IndiGo announced all-inclusive fares starting Rs 1,499. (Reuters)

IndiGo announced all-inclusive fares starting Rs 1,499. (Reuters)

Profitable no-frills airline IndiGo today said it does not chase market share or load factor as priorities even as it continues to corner more than one-third of the total domestic air passenger traffic.

IndiGo’s assertion comes against the backdrop of some competitors rolling out a slew of low-fare offers as part of efforts to fill more number of seats, particularly during lean periods.

The Gurgaon-based carrier’s parent InterGlobe Aviation is all set for a little over Rs 3,000 crore initial public offer next week.

“We don’t track or chase market share… load factor and market share (are something) we neither chase nor track very diligently,” IndiGo President Aditya Ghosh told PTI.

IndiGo had a market share of about 39.8 per cent three months back and in September, it stood at 36.5 per cent.
When the capacity goes up, the market share naturally rises, especially since there is a huge unpenetrated domestic air passenger market.

“… it (market share) is highly likely to up but then this is not the only the thing IndiGo is looking at,” Ghosh said.

About government’s proposed move to put a cap on air ticket prices, Ghosh said that he does not foresee such a mechanism coming into force as pricing remains a function of demand and supply.

He said if such a mechanism is put in place it would have an impact on carriers that have high cost structure and added that fares have been one of the lowest in the last several years.

“There is a lot of talk on (capping the fare). I have not seen anything in reality. Now let’s say it happened. Let’s say there was a capping of fares or let’s say airlines are told that they cannot sell at low cost, can you imagine its impact on a higher cost structure airline?,” he noted.

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