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IndiGo cuts FY20 capacity growth target to 25% from 30%

IndiGo cuts FY20 capacity growth target to 25% from 30%

IndiGo cuts FY20 capacity growth target to 25% from 30%
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By Anu Sharma  Oct 25, 2019 6:18:24 AM IST (Updated)

IndiGo has cut its capacity growth target for the current financial year to 25 percent from 30 percent earlier due to delay in aircraft delivery from Airbus.

IndiGo has cut its capacity growth target for the current financial year to 25 percent from 30 percent earlier due to delay in aircraft delivery from Airbus.

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“Looking backwards, the reason why we were softer in terms of ASK growth rate was because of the Jet Airways slots issue so this is affecting August, September…looking forward, the softness is due to aircraft delivery issues,” Chief Executive Officer Ronojoy Dutta said.
ASK or Average Seat Kilometres, a measure of an airline’s passenger capacity, was up 30.3 percent on year for IndiGo in the June quarter this year. The same rose 28.9 percent on year in the September quarter last year. However, ASK increased 24.2 percent on year in the quarter under review.
The airline will no longer be adding aircraft at the rate of six planes per month, Chief Operating Officer Wolfgang Prock-Schauer said.
“Our delivery stream for the next year is that growth rate is coming down anyhow. We used to get six aircraft every month and now that growth rate is expected to come down. We have certain delays in aircraft deliveries which may be in the range of 3-4 months which is also reflected in our growth for next year,” Prock-Schauer added.
The airline currently has 245 aircraft as on Sep 30. This includes 89 A320neo, 129 A320ceo, 6 A321neo and 21 ATR. As on Jun 30, IndiGo had 235 planes. This means that the airline added 10 planes in three months, averaging to around three planes per month.
“Aircraft deliveries delay are beyond  our control. We are in no way pushing back deliveries. If anything we are hungry for more deliveries. We are after Airbus for that,” Dutta reiterated, adding that a global supply chain issue is affecting the deliveries.
“All across the aviation industry worldwide there seems to be a problem in the supply chain….castings, forgings are not available. All engine manufacturers and aircraft  manufacturers seem to be struggling to keep up with this demand,” Dutta added.
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