GoAir Moderates Growth Plans

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.