GoAir to break even in FY 13: CEO

The company is hopeful of spreading its wings for intnl operations in the next fiscal

After slipping into losses in the last fiscal, low cost carrier Go Airlines (India) or GoAir, is confident to break even in the current financial year. According to chief executive officer of the airline Giorgio De Roni, the company is expecting to clock in a growth of 40% in its topline in FY13. GoAir had a topline of around Rs 1,600 crore in the previous fiscal.

The Wadia Group-owned airline made a net loss of R133.72 crore compared with a net profit of R60.05 crore in 2010-11, according to the company's annual report. The carrier plunged into a loss due to increasing fuel prices, a weak rupee and intense competition which lowered average fares across airlines.

“We had marginal loss in the last fiscal but the first and third quarter of this fiscal have been profitable. So we are confident that we will break even in FY 13,” Roni said. He was in the city to make an announcement on the carrier's three new flying destinations from Kolkata to Ahmedabad, Bagdogra and Guwahati which would start from February 4. Currently, it has daily flights to Delhi and Port Blair from Kolkata. Roni pointed out that by March 2014, it will add three new destinations, but those locations are yet to be finalized.

The company is hopeful of spreading its wings for international operations in the next financial year but currently it is waiting for the nod from the ministry of aviation. This move would help to increase its domestic connectivity   

Roni said, “The government of India has stipulated domestic carriers can go abroad only if they have at least 20 aircrafts. Currently, we have 13 and a fresh one would arrive on Friday. Another seven would be delivered by July 2014. In September, we had applied to the government for a waiver of this norm so that we can start services on international routes. We are confident of securing the relaxation sometime next fiscal.”

He pointed out that cost of fuel is almost 25% cheaper in international operations compared to domestic operations. Currently, it is planning to have flights for Gulf region and Middle East but once the government approval is in place it may start operations in South East Asia, Sri Lanka, Nepal.

“We have also placed orders for additional 72 aircrafts and the delivery of that would start from 2016,” he added.

On queries of possible foreign direct investment in the airline, Roni said, “We are not looking for cash injection at the moment.”

Going forward, according to the CEO, it would continue to give a thrust on the eastern region and hopes to take the region's contribution to 15% of the revenue by FY 15, from the existing 10%.

http://business-standard.com/india/news/goair-to-break-even-in-fy-13-ceo/204244/on