IndiGo expects to be back on profitable growth soon as the crisis in the industry, mostly due to the pandemic, is easing, even as the low-cost carrier is readying for a leadership change.
“The good news is that the crisis seems to be ending, our revenue performance is strong, and we should be back on a path of profitable growth soon,” chief executive officer Ronojoy Dutta said in a letter to employees.
“IndiGo has always been good at managing growth. During the last couple of years, we have demonstrated that IndiGo is also good at crisis management. We have been nimble at managing capacity, maximising revenue opportunities and managing our balance sheet,” Dutta said.
In the company’s annual report for FY22 released last week, Dutta said India is witnessing a strong aviation growth story.
“With only 7% of Indians currently availing airline services, we anticipate a 15-20% annual growth for the foreseeable future. The aspirational demographics of the country provide the industry with a huge talent pool. Our cost leadership in the industry, driven further by efficient, digitised processes and fuel-efficient aircraft, will only be enhanced over time,” Dutta said in the company’s annual report.
IndiGo, which has been in operation for the past 16 years, is the country’s largest airline with a 57% domestic market share and a fleet of over 280 aircraft. The airline employed 26,164 personnel in FY22, an increase from 23,711 in the previous year.
In May, InterGlobe Aviation (the operators of IndiGo) announced the appointment of Dutch carrier KLM’s Pieter Elbers as CEO. He will replace Dutta, who steps down effective September 30.
“We are also getting ready for a change in leadership at IndiGo. Pieter Elbers will be taking over the reins of the company sometime in the next few weeks. Pieter is perfect for the job with a long and successful career at KLM where he built one of the world’s best brands. Most importantly, he has a reputation for being highly respected and admired by KLM employees,” Dutta said in his letter.
In July, IndiGo also appointed former Sebi chairman M Damodaran as non-independent non-executive director.