Our’s is the only airline not to return aircraft & retrench people

Our’s is the only airline not to return aircraft & retrench people

by February 2, 2014 0 comments

GoAir is India’s leading low fare airline based in Mumbai and is the aviation foray of the Wadia Group. Positioned as’the Smart People’s Airline’, GoAir aims at offering passengers a consistent, quality-assured and time-efficient service through ‘pocket-friendly’ fares. GoAir operates with 8 air- craft and today hosts the youngest fleet in Indian skies. The airline currently operates across 13 destinations through 596 weekly flights and 42 routes. The airline uses the state-of-the-art Airbus A320 aircraft fleet. The GoAir route network as of February 2010, spans prominent business metropolis’ across the length and breadth of the Indian subcontinent. This includes Ahmedabad, Bangalore, Chandigarh, Cochin, Delhi, Goa, Jaipur, Jammu, Mumbai, Srinagar, Guwahati, Bagdogra and Indore. Through this route network GoAir ensures a smart value-for-money option for both business and leisure travellers, without compromising on either safety or service factors.

In addition to this, GoAir plans to focus on its Business plan of inducting to its existing brand new fleet of 8 aircraft, another 12 aircraft by 2012 details of which will be shared in a phased out manner. GoAir is also planning to relaunch its car- go services shortly under the brand name Go Cargo.

GoAir’s distribution network has been well-researched and after thorough evaluation of the available mediums, the Airline has introduced a gamut of service options designed to make tickets very accessible to a traveller. The airline has also partnered with Radixx International, a leading technology provider of automated aviation and travel related software solutions, for the use of its Air Enterprise. The adoption of such technology solutions enables GoAir to achieve superior process efficiency, thereby helping transfer a greater portion of time savings to its passengers.

Q&A with Rakesh Tiwari, Director, Commercial

Q. Global aviation sector is passing through its worst period in the recent past but GoAir have managed to hold its ground firmly in recessionary time, explain the secret of this unique achievement?

Due to a churn in Market in 2009, Indian airline Industry suffered the most as they grew too big too fast and passenger load factor dropped consistently. Now that it is predicted that growth will return to the Indian aviation industry over the next six months we are hoping to see drastic improvement in the Indian Aviation industry especially on the domestic front as more and more people are travelling by air these days considering there is not much difference in the Train and Air Ticket prices. GoAir realized in 2005 that the industry would take upto 3 – 5 years to turn healthy and as a result decided to increase its fleet strength only starting in 2009. This strategy was criticised by many as GoAir was consistently told that it is too small and that GoAir is not growing its fleet like the other airlines. Today the same critics respect GoAir’s strategy as we are the only airline not to return aircraft and not to re- trench people. On the contrary when most airlines are retrenching there staff and returning/subleasing there aircraft we are in fact hiring people and bringing in more aircraft. In addition to this Go Air has seen considerable improvement in its Load Factor and Market Share for the last six months. Go Air has also one of the best Cancellation rate as compared to other airlines and the high- est market share % per aircraft. GoAir plans to focus on its Business plan of inducting to its existing brand new fleet of 8 air- craft, another 12 aircraft by 2012, completing its order of 20 Airbus’s which the company bought in the year 2007 for $1.2 Billion USD. Go Air is planning to induct its 9th & 10th Aircraft by September this year and the rest of the 10 aircraft by 2012. Today we are in a position to expand irrespective of the economic down Billion USD. Go Air is planning to induct its 9th & 10th Aircraft by September this year and the rest of the 10 aircraft by 2012. Today we are in a position to expand irrespective of the economic down- turn, which we all know is temporary. Go Air is positioned as ‘the Smart People’s Airline’. Its captivating theme, ‘Fly Smart’ is aimed at offering passengers a consistent, quality-assured and time-efficient service through ‘pocket- friendly’ fares. Airline efficiency is at an all time high owing to the all new fleet in the sky. Go Air operates with 8 aircraft and today hosts the youngest fleet in Indian skies(average age of 12 month). Go Air since inception endeavours to give its customers value for money by launching one of the most attractive innovative offers and being very competitively priced. Go Air currently offers three product categories as compared to one each by the other airlines. The recent launch- es by the airline are GoBusiness which gives the customers advantage to fly the Comfort of a Business class at the price of an Economy Class fare. Fly smart offers-Tickets booked 30 days in advance can be bought at 0 base fare and Go Flexi -Passenger can change or return tickets in a day’s time without having to pay anything extra. Also all Go Air Pilots and Aircraft are Cat IIIB compliant to navigate through foggy conditions success- fully.

Q What is the future of low fare airline in India? Why a conventional airline is turning out to be a liability in Indian con- text?

The low cost carriers have undoubtedly been the real innovators by keeping a tight rein on costs all along. When the first LCC was launched in India, there was enough debate around it. Industry experts, analysts and stake holders questioned the significance of the LCC model for the Indian market for various reasons like lack of secondary airports, absence of disparity in the airport charges paid by the full service carriers and the LCCs respectively. However over time, the low cost model has proved to be a more viable option for the Indian market than the full service carrier model. This is evident from the current market scenario, which further shores up the case for the LCCs in India. No wonder, LCCs have carved their own niche market at a rapid rate. While full service carriers had been adversely affected by rising costs of operations, low volumes of traffic and overcapacity in a falling market – Low-cost carriers had notched higher market share and are still giving a tough time to full service carriers. It is evident that the airlines are battling with various strategies and value added initiatives to combat their financial loses. The legacy carriers are now betting on no-frills as they have realized that India is a low-cost market. Liberalization of the Indian aviation sector lead to the emergence of the private airlines and the very successful Low Cost Model in India has made air travel an affordable mode of transportation.

Q Cost of operations in India is growing rapidly in India that is putting pressure on even low fare airline, what specific strategy is planned by GoAir management to counter this threat?

Due to a churn in Market in 2009, Indian Airline Industry suffered the most as they grew too big too fast and passenger load factor dropped consistently. Now that it is predicted that growth will return to the Indian aviation industry over the next six months we are hoping to see drastic improvement in the Indian Aviation industry especially on the domestic front as more and more people are travelling by air these days considering there is not much difference in the Train and Air Ticket prices. GoAir realized in 2005 that the industry would take upto 3 – 5 years to turn healthy and as a result decided to increase its fleet strength only starting in 2009. This strategy was critized by many as GoAir was consistently told that it is too small and that GoAir is not growing its fleet like the other airlines. Today the same critics respect GoAir’s strategy as we are the only airline not to return aircraft and not to retrench people. On the contrary when most airlines are retrenching there staff and returning/subleasing there air- craft we are in fact hiring people and bringing in more aircraft. In addition to this GoAir has seen considerable iprovement in its Load Factor and Market Share for the last six months. GoAir has also one of the best Cancellation rate as compared to other airlines and the high- est market share % per aircraft.

Q Price of oil is a key factor to aviation industry, with the inflation looming large and price of oil is escalating to higher side what will be the GoAir specific strategy to mitigate this factor?

GoAir since inception endeavours to give its customers value for money by launching one of the most attractive innovative offers and being very competitively priced. . Fly smart offers-Tickets booked 30 days in advance can be bought at 0 base fare and Go Flexi  Passenger can change or return tickets in a day’s time without having to pay any- thing extra.

Q Tell us about Go Cargo? 

GoAir, India’s smartest airline has introduced a dedicated air cargo business, branded Go Cargo from December 13, 2009. The airline has outsourced
3rd party vendor as its national partner for cargo business. The airline will connect all the 13 cities under the GoAir network for Cargo Business. Air  Cargo traffic  in India has been growing due to strong domestic demand and rising international trade. According to the reports, the air cargo observed the highest growth in the cargo transportation sector in 20072008. Today, domestic cargo market in India offers a huge potential
with a market share of approximately Rs 33cr per month. The market will get a further boost with the recent raise of the FDI limits allowing up to 74 percent stake in Indian cargo airlines, as this will bring in the much-needed capital and global best practices to the Indian air cargo industry. With  Go Cargo, Go Air anticipates to achieve a market share of 10%.

 – OE News Bureau

 

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