GOAIR MOD­ER­ATES GROWTH PLANS

SP's Airbuz - - Newescebnt -

Low cost car­rier GoAir has re­vised its plans for growth owing to ris­ing fuel price, trou­bles with new plane en­gines and short­age of pi­lots. The air­line has charted a mod­est ex­pan­sion in the world’s fastest-grow­ing avi­a­tion mar­ket and is si­mul­ta­ne­ously look­ing to lease out some of its old planes, as fuel cost is hurt­ing prof­its. GoAir had ap­pointed an ex­ter­nal con­sul­tant to re­align its net­work plan­ning, fol­low­ing which it has de­cided to max­imise fre­quency on the prof­itable metro to non-metro routes rather than adding new des­ti­na­tions. It has also pushed its in­ter­na­tional foray to Mal­dives and Phuket to Septem­ber 2018, which was to be­gin last year. Re­cently, the air­line has also re­vamped its en­tire senior man­age­ment with a new Chief Ex­ec­u­tive Of­fi­cer, Chief Op­er­at­ing Of­fi­cer and Chief Com­mer­cial Of­fi­cer.

“The tax­a­tion on jet fuel is the high­est in In­dia. Air­lines can­not grow their op­er­a­tions in the prime Delhi, Mum­bai routes where it can make money and the po­ten­tial of good yield is very lim­ited in air­ports out­side the met­ros. So, for a short pe­riod, we have de­cided to con­cen­trate on where our strength lies. Ex­pan­sion will be there, but it will be con­trolled and will fo­cus on in­creas­ing flights at all price points and time,” said a senior ex­ec­u­tive of the air­line.

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