Goair flying high on expansion despite pandemic impact
Goair, promoted by the Wadias, has set its sights on a major expansion drive in terms of network and aircraft fleet, despite grappling with the impact of the second wave.
It is betting big on its ultralow-cost carrier model to consolidate its position as one of the few Indian airlines making profits in a highly-competitive and cost-intensive market.
“While the sector is facing temporary headwinds, we believe the airline is uniquely placed with its inherent ultralow-cost structure that has always stood us in good stead, Chief Executive Officer Kaushik Khona told PTI in an exclusive interview.
In March, founder Jeh Wadia from the promoter family had stepped down from the management. The airline also announced the elevation of Ben Baldanza, a global airline professional, as vice-chairman.
Baldanza has been accredited with reviving and taking public Spirit Airlines in the US. There have also been talks that Goair has been on course to raise funds to fuel its expansion.
Khona said he remains confident that the ULCC (ultra-low-cost carrier) model will set Goair on a unique growth route.
“At Goair, we are confidently moving ahead, thanks to our ULCC model,” he said.
Khona said the ULCC model involves single aircraft and engine type, with common buyer-furnished equipment that provides the lightest and most cost-efficient highdensity seating of 186 for its Airbus A320 neo aircraft.
“All this helps to keep our operations simple and overall cost structure low, along with a common skill set for pilots and the engineering team, among other training requirements,” Khona said.
Khona also sounded confident about a highly-underpenetrated Indian aviation market, which he said, once the Covid-19 pandemic ends, is expected to witness a huge surge in demand.
“We cater to a large proportion of first-time flyers and non-business travellers. We already see strong growth shoots from small cities – opting for shorter travel time vs railways. At the same time, we expect the trend of intermittent vacationing or short-term leisure holidays growing post the pandemic,” he said.
The second factor driving optimism at Goair has been its good track record of profitability above everything, he said.
Owing to its point-to-point network operations to navigate slot constraints, Goair claims a high aircraft utilisation rate of 12.9 hours per day and a pre-covid-19 profitability record.
“We were profitable since inception till 2019 and also closed 2020 as a cash positive player. Efficient operations are our USP and we don’t compromise on that,” Khona said.
This passion for efficiency has also led the company to lag amid its peers, as some analysts said.
However, Khona said it is a trade-off the company has lived happily with.