GoAir Airlines gears up for 7 million passengers in fiscal 2015

Taking head-on the challenges such as slowdown in the economy, depreciation of the rupee and increase in Aviation Turbine Fuel prices, Wadia Group-led Go Airlines India Pvt Ltd  is expecting to take on board 7 million passengers in the current financial year compared to 5 million the last fiscal.

GoAir Chief Executive Officer  Giorgio De Roni on Thursday said that with the right mix of market strategy and cost control the airline can achieve its target. “We plan to target non-metro cities instead of the metros and make it account for 75 per cent of our business. Right now, we operate from 20 destinations and plans to add one more in the current fiscal. From Bangalore, we have 10 flights on a weekly basis and plan to add two more services soon,” he said.

“Much of our fiscal burden comes from fuel costs, landing fees and MRO expenses. Of this, 50 per cent comes from fuel expenses. We hope the new government would bring it down so that the aviation industry will grow in India and contribute to the overall growth of the economy,” Roni said.

On the airline’s planned international foray, he said GoAir is entitled to get a license soon as it has achieved the mandatory five years of industry experience and has 20 flights under its command. “But we are not in a hurry. I will say that it will not be possible in the current financial year but most likely will take place in the first quarter of the next financial year.”

Responding to a query on the airline’s stake divestment plans or a possible IPO, Roni said the company is scouting for partners with experience who can carry forward the consumer-centric legacy of GoAir. “We are seeking FDI not merely for strengthening our financial interests, but also to strengthen GoAir in areas like training and maintenance,” he said.

Expecting India to become the third largest airline market in the world by 2020, GoAir has placed orders for 72 new-age Airbus A320 aircraft.

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