IndiGo’s President Aditya Ghosh spoke in support of Draft Aviation Policy in which the government has proposed to cap airfares on regional routes at Rs 2,500 and said that it is a holistic move to expand the market, on a day when the shares of the airline’s parent company InterGlobe Aviation soared 17 per cent on debut trade. Here are his top 5 quotes:
1. Asked about InterGlobe Aviation’s stock performance, Aditya Ghosh said, “it beat my own expectations”.
2. “It’s fair on the part of the government to seek something in return (to help develop a larger market). In isolation, the capping ticket prices and the 2 per cent cess on air tickets may not look fair, but on the whole it will help develop better air connectivity,” Aditya Ghosh said about the draft aviation policy’s clause in which the government has proposed a cap of Rs 2,500 on airfares in regional routes besides a 2 per cent levy on all air tickets to boost air connectivity.
3. “Entering the regional aviation space does not make sense for us now as our current planes are not economically suited for that,” Ghosh said. He added that the new regional connectivity plan would help open up huge opportunities for regional airlines but was quick to add that his airline has no immediate plan to enter the sector as his present plane types do not suit that.
4. Noting that the airline, launched on August 6, 2006, has grown to fast in scale of operations, complexity and delivery, Ghosh said, “the risk is not about demand, which is already there in aplenty. But the risk is about execution and meeting those demands.”
5. When asked about whether he is a relieved man now with the stock not doing an encore of what the Cafe Coffee Day stock, he said, “for the past few months, we hardly slept for 3-4 hours.”
“We were asked those questions by regulators, analysts and i-bankers, which we thought never existed. But this huge success to our IPO and listing also increases the pressure and responsibility on us as we have to now get back to the public every three month with all the facts,” he said. However, he was quick to add that “IndiGo has a battle- ready management and will overcome every challenge as in the past and will deliver much than what we have been delivering so far.”
(With agency inputs)