Summary: Q: You have been very bullish about the RASK getting higher and higher… that the Indian customers will be willing to pay more for a higher, a better and efficient service. Your RASK is now at historic high. How much more scope is there to improve this further? Ans: >Loss reported by the airline was Omicron-driven >Rise in fuel prices also contributed to the airline’s loss >But the market is optimist because of the revenue performance >In April 2022, the airline’s revenue was up 12% compared to pre-Covid >Only 5-7% of Indian travel by air and the percentage is going to grow >Companies now realising that it’s efficient to pay for employees/labours’ airfare to avoid lost business etc >Indians are traveling more than ever, within the country and abroad >Good customer service and after-travel services are also helping in revenue growth >Airline’s revenue is strong, but fuel prices are a problem and the mark to market adjustment distorts its numbers Q: So, (you are indicating) higher competition and higher intensity in the market and multiple players vying for the same share of pie is not likely have any kind of impact. Ans: >Industry made a mistake in the past by assessing the revenue growth in terms of volume only >Airlines can’t lose on every passenger and aim to make it up in volume >Domestic airlines are now optimistic of a strong revenue up-cycle Q: You’re looking at 55 to 60% increase in ASKs in FY23. So where will we see… Would we see Indigo ramping up frequencies existing routes or will we see more new stations coming up? Ans: >55% growth was estimated over 2022 which had the Covid Omicron-effect >Compared to pre-Covid, IndiGo’s capacity would be above 15%, and 20% in a year’s time >IndiGo will continue to look for new stations in domestic market >The airline is lagging behind in the revenue side on international market Q: Is there again some thought about getting wide body planes? Ans: >Airline to go for wide body planes if gets Minimum Connecting Time (MCT) and banks aligned >Plans to make a foray into Europe as well as the East with XLRs
