Tariffs: IndiGo CEO says long-term plans won't be impacted

Mumbai: India's largest carrier IndiGo is confident that the global events triggered by tariff hikes will not impact its long-term plans.

The large domestic market, which includes a big untapped segment, will help airlines, the company's Chief Executive Pieter Elbers told PTI in an interaction.

"Some of the more recent dynamics and the global scale are not changing any of our capacity (expansion) plans for next year," he said.

He, however, said a major economy like India cannot be insulated from a major world event like the tariff wars.

Elbers said the company is desirous of doubling its size by the end of the decade and the same will not be impacted.

The long-term trajectory for the business is one of growth, and the company will not be affected if there is a quarter of a blip or higher achievement as well, he said.

To a question on the duopoly in the Indian aviation market -- the Tatas are the only formidable competitors to Indigo -- and how he sees it going ahead, Elbers suggested that having an airline of big size and scale that is able to compete globally would be helpful for India.

He said a similar consolidation has been observed in other aviation markets as well.

To a question on the review of the seats framework by Indian authorities while negotiating with other countries, Elbers said parting seats represents a "missed opportunity" for Indian carriers, as the foreign carriers are benefiting from it.

India needs airlines and also the maintenance, repair and overhaul facilities given the employment potential, he said, adding that Indigo itself sends its aircraft overseas for such works.

To underline the employment potential, Elbers said Indigo employs over 60,000 people at present.

On some voices pitching for capping of domestic airfares, he said the fares go up during seasons, and added that it is only during occasions like the Kumbh Mela when the fares really skyrocket.

Underlining that airlines serve an important role from an economic and social perspective, he pitched for market forces being allowed to play.

The average ticket costs are not so high in India, and the country is one of the most competitive aviation markets in the world.

With a new airport coming up in the satellite city of Navi Mumbai, Elbers said at a conceptual level, IndiGo will like to grow from the newer facilities while maintaining the services at the older airports.

The company will operate from Navi Mumbai airport, which will serve customers both in Mumbai and Pune, once it opens later this year, he said.