IndiGo To Expand Fleet

Friday, 27th June 2014 at 03:46am

While most other local airlines are struggling to cut losses and suffering indebtedness, here comes IndiGo, making a bold statement with its long-term expansion program to grow its fleet. The country's leading and largest low-cost airline is expected to reveal its aggressive expansion plan during the Farnborough Air Show next month in Hampshire, England.

The plan was to increase its fleet by up to 250 aircraft from the current number of 78, some of which will replace aging planes. The sheer number of planned order only means one thing�"IndiGo is optimistic on the future of the country's aviation industry.

Based on CAPA's projection, the country's domestic capacity will expand by up to 10%, the bulk of which will be supplied by AirAsia, which has just launched its commercial operations last month.

Interestingly, IndiGo is the only airline among the country's more established players to undertake significant capacity expansion this year. Although other carriers may possibly add capacity as well like the newly-launched AirAsia India, Tata-SIA, and Air Costa.

Air Costa is a new airline which has just debuted last year, mainly serving the domestic short-haul market. Full-service Tata-SIA, on the other hand, is set to debut in the local market possibly towards the end of this year. It is the brainchild of Tata Group and Singapore Airlines who, together, signed a joint venture only last year.

CAPA, however, didn't say whether state-owned Air India as well as SpiceJet and Jet Airways will add capacity this year. Jet, for its part, will definitely hold any expansion plans in the domestic front. Though it will take delivery of its B737 within the fiscal year, it will be deployed on international routes.

SpiceJet will downsize its domestic operations this year while Air India's request for more planes for domestic expansion is unlikely to get approval from the government, so no expansion plan will happen during the period for the flag carrier. Instead, it will pursue its modest international expansion with the arrival of two Dreamliners this year.

Jet Airways, meanwhile, is expecting to acquire seven B737s for deployment on international routes while IndiGo and SpiceJet will have a moderate expansion on international operations.

IndiGo declared six-fold growth in profit for the last fiscal, amounting to Rs787 crore, and it is expected to amass a sizable profit again this fiscal year.

Currently, the carrier operates a fleet of 79 aircraft, accounting 1/3 of all Indian carriers' combined fleet.

By: Pete Lee.