IndiGo CEO Ronojoy Dutta on Wednesday said a new Air India under the Tata group would be a real challenge while new airline Akasa Air would be a much less competitive force for the next two-three years.
Akasa Air, which is backed by former IndiGo chairman Aditya Ghosh, veteran investor Rakesh Jhunjhunwala and former Jet Airways CEO Vinay Dubey, on Monday received a no-objection certificate (NOC) from the civil aviation ministry.
“Akasa is a very less competitive force now or for the next two-three years. They have to slowly rise and move, get slots, get planes. They’re not going to come out of the box, desperate to go. Slow build up. “
“And against that, I think we have a good defense. We are the lowest-cost carrier. For anyone to lower their cost from us,” Dutt told a pre-recorded event organized by an aviation consultancy firm. Said in the interview done. It will be difficult.” CAPA.
No matter what the numbers look like, “we’re running a great airline” with very low costs and a great network, he said.
Dutta said, ‘Amidst the Kovid-19 epidemic, we have opened nine new domestic stations.
“So, for a new entrant, it will be tough to compete with us. But (new) Air India – this is the real challenge for us,” he said.
On 8 October, the government announced that Tata Sons’ wholly owned subsidiary Tels Pvt Ltd had formed a consortium led by SpiceJet promoter Ajay Singh to win a bid to acquire debt-ridden Air India. 18,000 crore was offered for Rs. is defeated.
Dutta said Air India will be a strong force under the Tata group and IndiGo does not take it lightly at all.
“Internationally, they will be a strong competitor. Domestically, they now have three carriers – Vistara, AirAsia India and Air India – all grouped together. In this case, they will have a tough competition. I see him as a tremendous force. I see it,” he said.
Dutta said that IndiGo is currently operating around 85 per cent of its pre-Covid domestic flights and about 40 per cent of its pre-Covid international flights.
“We are not growing much in the next 18 months. After that, we start growing,” he said.