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Top 10 takeaways from IndiGo CEO Ronojoy Dutta interview

Top 10 takeaways from IndiGo CEO Ronojoy Dutta interview
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By Anu Sharma  Jun 25, 2019 8:41:14 PM IST (Updated)

IndiGo CEO Ronojoy Dutta in an interview with CNBC-TV18 on Tuesday spoke about a range of issues concerning the domestic carrier. Here are the ten takeaways from his interview:

IndiGo CEO Ronojoy Dutta in an exclusive interview with CNBC-TV18 on Tuesday spoke about a range of issues concerning the domestic carrier.

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Here are the ten takeaways from his interview:
  1. There is only one administrative issue between the two promoters of the airline, Rahul Bhatia and Rakesh Gangwal, and efforts are being made to resolve it. It is not related to the shareholders agreement and it is not about airline but it is in fact, about related party transaction.
  2. The airline is in talks with Airbus and Boeing for placing its next order. Preliminary talks are ongoing. The current order-book which still has over 340 planes will be able to sustain the airline expansion plans till 2024. The airline will move forward with the manufacturer which gives it a better package.
  3. The airline believes that a mixed fleet is sustainable if added in right numbers. The airline is not looking at restricting its choice to Airbus only as it believes that mixed fleet doesn't work for small orders but are doable if the addition is of at least 70 planes.
  4. The airline is interested in Air India but only for its international segment. Given a choice it would bid for the international segment of Air India only at the right fleet size and right price. The airline still believes that Air India has huge risks but great rewards.
  5. The airline will not look at adding business class seats. It believes that such a step will complicate its model. It wants to stick to a simple model.
  6. The airline is looking at growing its international operations aggressively. Out of a capacity growth of 30 percent, it wants to deploy half of that for international expansion and the remaining for domestic. It doesn't want to be a global disrupter, but a global player.
  7. The airline believes wide-body aircraft are inevitable but a dangerous model. It is not looking to induct these in the near term but is studying the long-range wide-bodied aircraft model.
  8. The airline said that Jet Airways was a good model to start with and its Middle East venture was also a smart move. However, it made a wrong decision of adding wide-bodied aircraft in its model too soon and the international expansion plan was not an organised one. IndiGo doesn't want to repeat the same mistakes.
  9. The pilot shortage situation is under control. It has employed 300 ex-Jet Airways pilots and hopes to add another 100 by September.
  10. The $20 billion deal with CFM to power 280 A320neo family aircraft was not because the airline had concerns about Pratt & Whitney engines. It was because CFM offered a better package than its rival. Pratt & Whitney engines are performing better than before with lesser issues.
  11. Also read: 
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