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IndiGo ready for swift competition as industry opens to more flyers post-COVID

IndiGo ready for swift competition as industry opens to more flyers post-COVID
IndiGO CEO Ronojoy Dutta believes the competition landscape is going to get much more intense.

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IndiGo ready for swift competition as industry opens to more flyers post-COVID

With Tata Group taking over Air India and the Civil Aviation easing restrictions, IndiGo is ready for swift competition. The air travel sector is looking forward to increasing demand on the back of vaccinated consumers and easing of COVID-19 restrictions.




Ronojoy Dutta, Wholetime Director and CEO, IndiGo, believes the competition landscape is going to get much more intense. “There are three potential new entrants. The most formidable force of course will be Air India, Vistara and AirAsia (India) alliance,” Dutta said. “They’ll emerge as a strong player. No question about that.” He also highlighted Akasa. “This is also something we have to be very careful about. Finally, there’s Jet 2.0.”

Akasa Air, which is partly funded by stock market maverick Rakesh Jhunjhunwala, has received a no objection certificate (NOC) from the Ministry of Civil Aviation. Akasa plans to offer flights across India starting from the summer of 2022. The Jhunjhunwala-backed aviation venture SNV aviation, Akasa is planning to operate as a low-cost carrier or an ultra low-cost carrier. And for this, the stock market investor has onboarded aviation industry veterans such as former Jet Airways CEO Vinay Dube and ex-IndiGo president Aditya Ghosh to run the airline.

Dutta said IndiGo’s first line of defense is that the airline has the lowest cost structure in the world. “Besides, our engineers are getting more fuel efficient. Then, there is our service standard and the third is our traction with the customers in terms of our network. Build a great network, build great connectivity and make sure you have high on-time frequencies between major destinations.” He said that apart from connecting the smaller towns, the airline is entering code-share agreements to shore-up its international network. A code-sharing agreement, in aviation parlance, allows airlines to sell seats on each others’ flights in order to provide passengers with a wider choice of destinations.


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The IndiGo CEO shared that the airline, last month, entered into a code-share agreement with the US-based American Airlines. Dutta believes the sector has restarted to pick up growth and is expected to double in size in the foreseeable future. “The government needs to open up more airports. We need to fly to more cities. Even now, every flight from a smaller city is getting connected to a metro. Now these smaller cities need to be connected to each other.”

He said there is a lot of demand from the smaller cities. “So, we are moving towards mass transportation. We should also move towards mass transfers at a faster rate.”


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