IndiGo's Grounded Fleet Recovery
India's largest airline, IndiGo, said on Friday it expected to have around 40% of its currently grounded fleet back in action by April. The figure came after the company incurred its first quarterly loss since two years ago, according to reports, due to non-operational aircraft expenses.
Gaurav Negi, the Chief Financial Officer of IndiGo, had said in the earnings call that the aircraft on the ground would drop from its current high 60s to less than 60 by the end of 2024. Targeted achievement is to touch the 40s by April.
It recorded a loss of 9.89 billion rupees ($117.7 million) for the quarter ended on September 30 compared with a profit of 1.88 billion rupees in the same period of the previous year as a low-cost carrier.
The loss was mainly due to grounded fleet costs and fuel bills, Negi said. However, IndiGo commands a near 63% market share in India and is the highest rated airline in Asia in terms of valuation, according to its chief executive Pieter Elbers.
Indian was the fastest growing aviation market in the world for over two years and aims for taking a position as a potential global aviation hub. Many airlines, such as IndiGo, are placing record-jet orders to facilitate it.
IndiGo's Expansion and Financial Performance
In respect to third quarter capacity, measured as available seat kilometers, the group airlines anticipate a low double digit percentage increase compared with this year. The operating group aircraft fleet has 410 airplanes.
With plans to roll out its first business class on select domestic routes early next month, IndiGo will leave behind its usual all-economy cabin.
Challenges and Adaptations
One factor that had a negative effect on the airline's financials was after the grounding of more than 70 aircraft last November because of complications arising from Pratt & Whitney engines. Based on this, the airline determined it could absorb lease extensions with some of its older jets as well as purchase more new aircraft to add to its operations.
There was almost 13% fuel expense, plus nearly 30% supplemental expense, which includes aircraft rental and maintenance. Expenses related to new aircraft and renting engine jumped nearly fourfold. ($1 = 84.0560 Indian rupees, according to current exchange rates).
IndiGo's Shareholder Activities
IndiGo's Indian airline Co-founder Rakesh Gangwal sold a 5.8% stake valued at $820.3 million through bulk transactions on Monday in the company Interglobe Aviation, according to information from the stock exchange. As of the end of December, the co-founder had an 11.72% stake in Interglobe, and through the sale, 22.5 million shares were sold at between 3,015.10 and 3,016.36 rupees a share. Morgan Stanley bought 2.1 million shares, but the amount taken by other buyers was unknown. The level of Gangwal's holdings in the company after this sale remains unclear. Gangwal and his wife Rekha have, in the last two years been selling off their interests in the company, fully, Rekha exiting from the firm last August. However, their Chinkerpoo Family Trust remains the second-largest shareholder of Interglobe with a 13.49% stake as of December 31. In February 2022, Gangwal resigned from the board of the airline and declared his intention to cut his stake in IndiGo within five years. On Monday, the shares of the company closed 3.6% higher at 3,218.55 rupees, up 8.5% so far this year.
FAQs
What is
IndiGo's policy if a flight is cancelled, delayed, or preponed?
IndiGo
reserves the right to cancel, reschedule, or delay flights without prior notice
due to circumstances beyond their control, such as weather, air traffic
control, mechanical failures, acts of terrorism, acts of nature, force majeure,
strikes, riots, wars, hostilities, disturbances, governmental regulations,
orders, demands or requirements, shortages of critical manpower, parts or
materials, labor unrest, etc.
How can
I change or cancel my reservation?
You can
change or cancel your reservation through IndiGo's website or mobile app by
accessing the "View/Change Booking" option. Charges may apply
depending on your ticket type and fare rules.
What are
the charges for changes and cancellations for Stretch customers?
Charges for
changes and cancellations vary based on the ticket type and fare rules. Stretch
customers may have different policies and fees compared to other fare types.
How can
a refund for a cancelled ticket be obtained?
To obtain a
refund for a cancelled ticket, you can visit IndiGo's website or mobile app and
follow the refund process. Refunds are processed according to IndiGo's refund
policy and fare rules.
What is
IndiGo's policy on pre-paid excess baggage?
IndiGo
allows passengers to pre-book excess baggage online through their website or
mobile app. The charges for pre-paid excess baggage depend on the weight and
dimensions of the baggage.
Will I
be contacted in advance if my flight is delayed, preponed, or cancelled?
If you have
provided your SMS-capable mobile phone number and email address while booking,
IndiGo will notify you in advance through SMS and email. Passengers are
encouraged to keep their contact details updated.
What are
the compensation guidelines for flight delays or cancellations?
For delays
of more than 2 hours or preponement of more than 1 hour, passengers are
entitled to a full refund or re-booking onto an alternative IndiGo flight at no
additional cost, subject to availability. Compensation is processed according
to DGCA guidelines.
What
should I do if my flight is delayed or cancelled?
If your
flight is delayed or cancelled, you can check the flight status on IndiGo's
website or mobile app and follow the instructions provided. You may also
contact IndiGo's customer service for assistance.
What is
IndiGo's free baggage allowance?
IndiGo's
free baggage allowance varies based on the ticket type and fare rules.
Passengers are advised to check their specific allowance when booking their
tickets.
What
items are not permitted on an IndiGo flight?
Certain
items are prohibited on IndiGo flights, including explosives, flammable
substances, corrosives, poisons, and other dangerous goods. Passengers should
refer to IndiGo's prohibited items list for detailed information.
How can
I book pre-paid excess baggage?
Pre-paid
excess baggage can be booked online through IndiGo's website or mobile app by
accessing the "Baggage" section and selecting the appropriate option.
What
should I do if my baggage is lost or damaged?
If your
baggage is lost or damaged, you should report it to IndiGo's customer service
immediately at the airport or through their website or mobile app. IndiGo will
assist you in locating your baggage or processing a claim for compensation.
What is
a Travel Certificate and how can I retrieve it?
A Travel
Certificate is a document that can be used for reimbursement, GST, and LTC
claims. You can retrieve it from IndiGo's website or mobile app by following
the instructions provided.
Can
add-ons be added to group bookings?
Yes,
add-ons can be added to group bookings through IndiGo's website or mobile app.
How can
I book a specific seat for myself on the flight?
You can
book a specific seat for yourself through IndiGo's website or mobile app by
accessing the "Seat Selection" option and choosing your preferred
seat.
What are
the international travel guidelines for arrivals and departures?
International
travel guidelines vary depending on the destination and current regulations.
Passengers should check IndiGo's website for the latest guidelines and
requirements for their specific destination.
Are
there any vaccination requirements for international travel?
Some
destinations may require specific vaccinations, such as Yellow Fever and
Poliovirus. Passengers should check the vaccination requirements for their
destination and ensure they have the necessary certificates.
What
documents are required for travel to specific countries?
Required
documents for international travel include a valid passport, visa (if
required), and any other travel documents specific to the destination.
Passengers should check the entry requirements for their destination and ensure
they have all necessary documents.
What are
the check-in options available for Stretch customers?
Stretch
customers have various check-in options, including web check-in, mobile
check-in, and kiosk check-in.
How do I
check-in at the airport?
You can
check-in at the airport using the web check-in, mobile check-in, or kiosk
check-in options available. Follow the instructions provided at the airport for
a smooth check-in process.
Does
IndiGo provide any transfer facility between terminals?
IndiGo
provides transfer facilities between terminals at certain airports. Passengers
should check the airport's transfer options and follow the instructions
provided.
Who can
I contact at IndiGo with feedback or comments?
You can
contact IndiGo's customer service through their website, mobile app, or by
calling their customer service hotline for feedback or comments.
How can
I login to my IndiGo account?
You can
login to your IndiGo account through their website or mobile app by entering
your username and password.