IndiGo bets big on international operations

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Published: January 24, 2019 1:27:36 AM

The largest domestic carrier reported a 75% year-on-year decline in its net profit to Rs 191 crore for the December quarter due to high fuel costs and rupee depreciation.

 IndiGo, Indigo international operationsIndiGo bets big on international operations

Budget carrier IndiGo on Wednesday said it plans to aggressively grow its international operations during 2019. Ronojoy Dutta, principal consultant, IndiGo, said the airline has not given up hopes of flying low-cost, long-haul flights to Europe.

“We are going to grow international aggressively this year. About 30% of our capacity addition will happen on overseas routes. As far as flying long-haul is concerned, we have not given up on it. At the moment, it is neither a ‘yes’ or a ‘no’. You will hear about it soon,” Dutta told investors during Q3FY19 earnings call.

The largest domestic carrier reported a 75% year-on-year decline in its net profit to Rs 191 crore for the December quarter due to high fuel costs and rupee depreciation.

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At the beginning of 2018, IndiGo had sought approval to fly to Paris, Manchester, Brussels and Milan, but falling profits due to high costs and pressure on yields affected these plans.

“We currently cater to just 6% of the international traffic while foreign carriers have around 61% share. We have a huge cost advantage flying single-aisle planes at low cost. We can forcefully fly to places like Singapore and Dubai. Our huge domestic network will help us tap the international traffic,” Dutta said.

The management said a major chunk of aircraft induction during this year will be long-range Airbus A321 aircraft. These aircraft can serve destinations of up to six-hour duration which come under medium- to long-haul category of operations. The airline is likely to start direct flights to Istanbul from March.

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