Kolkata, Jan. 29:
The Wadia Group-promoted budget carrier, GoAir, is mulling introduction
of flights to smaller cities (tier-2 and tier-3), offering strongest growth
opportunities.
According to Giorgio De Roni, Chief Executive Officer of GoAir, the
company is exploring opportunities to use smaller — 48-78 seater aircraft (like
ATR) — to enter these markets.
The strongest growth is definitely in tier-2 and tier-3 cities. We are
analysing an opportunity for diversifying with a smaller aircraft. This again
is due to the fact that a smaller aircraft has benefits on fuel charges,
landing charges, navigation and parking. It might be worth (the attempt), Roni
told Business Line.
Most Indian carriers, except two, already have smaller aircraft.
Profitability
Meanwhile, the company (Go Airlines India Ltd) is expecting to book
profits in this fiscal, riding on higher passenger traffic. GoAir booked
profits for the first time in 2010-11 but ended up in red in the last fiscal.
This year (2012-13), we made profits in two quarters (Q1 and Q3). Our overall
profitability will depend on the fourth and last quarter (Jan-March 2013), he
said. India witnessed a six per cent decrease (in flyers across the industry)
up to December 2012. But GoAir has delivered a 15 per cent growth in terms of
passengers and that is why we are confident that we might reach profitability
this year, he added. Roni, however, did not elaborate if the anticipated
profits in this fiscal will be enough to wipe out the accumulated loss. Market
sources said the company registered a net loss of nearly Rs 134 crore in
2011-12, as against a net profit of Rs 60 crore in 2010-11.
IPO plans
While ruling out immediate plans of listing; Roni pointed out that GoAir
would be flexible towards the opportunities for going public.
“We should, however, be flexible enough to understand the opportunities.
The financial market has been going through turbulent times and it was not
worth working on IPOs,” he said.
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