GoAir plans to increase daily flights, annual passenger count 4-fold by 2020
GoAir ordered the planes - Airbus A320 Neos (New Engine Options) - in 2011. The delivery of the first plane will be between January and March 2016 while the last one is slated to come in December 2020, said Wadia.
“This is a huge phase of growth for GoAir. In 10 years, we have taken delivery of 19 aircraft and leased four planes. That's roughly two and half aircraft a year. We are now gearing up to take 72 aircraft between 2016 and 2020. That's 15 aircraft a year,“ managing director, Jeh Wadia told ET.
GoAir ordered the planes - Airbus A320 Neos (New Engine Options) - in 2011. The delivery of the first plane will be between January and March 2016 while the last one is slated to come in December 2020, said Wadia.The airline plans to expand from 22 destinations now to 36 by March 2018 and 52 by March 2020, said Wadia.From 41 routes now, it will grow to 71 in 2018 and 116 in 2020, he added. It will increase daily flights from 140 now to 283 in 2018 and 514 two years later and aims to increase the number of passengers carried from 7 million to 16 million in 2018 and 30 million by 2020. India's local traffic grew 12.5% in 2014 over 2013, according to IATA.
If it continues at the same rate, GoAir will aim to grow at more than four times the industry speed, which means it is aiming for higher market share. Wadia didn't, however, expand on how much share it estimates it will have GoAir has been the slowest to expand in the Indian industry since its inception in November 2005.
Then till now it has scaled up its fleet size to 19 planes and 140 daily flights. Rival IndiGo that came in a year later operates 638 flights daily with 96 aircraft. Like IndiGo, however, GoAir has been profitable. It posted a net profit of Rs 104 crore in FY13 Rs 5 crore in FY14. Wadia has and close to historically said he is not after size.
“Wadia has so far managed to lie low, stay small and go with the industry trend as far as pricing is concerned. But as it expands, it will have to bring in new market strategies. Of course, don't forget that GoAir is going to be one of the first customers of the A320 Neo.
If it takes deliveries in time and simultaneously replaces all its existing planes with the new ones, it will be running one of the most efficient fleets in the country in two years,“ said a senior executive at a rival airline.
It also plans to treble its employee count to 6,000 by 2020, said Wadia.
That will, among other things, entail the induction of new management executive, he added. It has started with GoAir inducting a new CEO Wolfgang Prock-Schauer. Prock-Schauer headed Jet Airways between 2003 and 2009 and oversaw important milestones in the carrier's history. He was also the CEO of Air Berlin and British Midland Airways, later renamed BMI.