Indigo recovering from Covid-19 induced aviation ‘carnage’ and may rehire

December 23, 2020 0 By boss

[ad_1]


IndiGo, India’s biggest airline, could start slowly rehiring staff in three months as capacity rebuilds from “the background of carnage” caused by Covid-19, with domestic services likely to return to pre-pandemic levels by January or February, Chief Executive Officer Ronojoy Dutta said.


“Doom and gloom is off the table and we are recovering pretty nicely, especially domestically,” Dutta said in an interview with Bloomberg Television on Wednesday. The recovery in international capacity will take longer due to quarantines and virus flareups in places such as the U.K., but the airline is hoping it will be back to normal levels by the end of 2021, according to Dutta.



IndiGo, which has some 730 Airbus SE A320neo planes on order, laid off about 10% of its workforce due to the pandemic-driven slowdown. The carrier, operated by Ltd., still sees “a lot of room” for growth in international routes, particularly those of about six hours duration that can be served by single-aisle narrowbody aircraft, Dutta said. India’s hubs are well positioned, he said.


Chart


“We are anxious to get back into the international game in a big way and we have lots of plans for rapid growth,” he said.


InterGlobe’s shares rose 2.2% Wednesday morning. They have climbed 20% this year, while a Bloomberg gauge of Asia Pacific airlines has dropped 21% and an index of global carriers is down 29%.


Rather than having too many planes on order, may have not ordered enough given the huge growth potential for air travel in India as the middle class expands and more people start to fly, Dutta said. The company is in early discussions with engine manufacturers for planes due for delivery from 2024.


The chief executive said IndiGo, which in August announced a share sale to bring in as much as 40 billion rupees ($540 million), isn’t looking to raise more funds. The company’s strategy remains focused on reducing costs and rapidly growing its operations, Dutta said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



[ad_2]

Source link