IndiGo planning to start cargo service

With its passenger service airborne and on set flight path, budget carrier IndiGo is planning to launch cargo services by December-end or early January. IndiGo president and CEO Bruce Ashby, who is looking at a sustainable growth with cash profits in 18-24 months of operations, said his airline will soon start taking cargo in the belly of the aircraft. “We could have started our cargo operations much earlier, but did not, because of the complexities involved. However, adding cargo service is next in line on our agenda,” said Ashby. The five-aircraft airline will take delivery of cargo on only few aircraft. “Cargo requires loading and unloading, which can delay the flight and disturb the on-time performance. We do not want to do that. Passenger service will always remain our first priority,” explained Ashby.

Providing cargo service will enhance IndiGo’s revenue on each aircraft by a percent or two. This will bring down its breakeven load factor on an A320 to 73-78% from the current 75-80% with an average fare of Rs 3,000 per passenger. “Yes, breakeven plane load is directly related to revenues. So, if we earn a little extra from cargo, we can take that much less passengers to achieve breakeven on a single flight,” said Ashby. Over the last few weeks, IndiGo’s average load has been close to 76%, while its average fares are a little less than Rs 3,000 per passenger. The airline has launchedits service in Delhi, Bangalore, Chennai, Guwahati, Imphal, Hyderabad, Kolkata, Mumbai, Nagpur, Pune and Vadodara with its first four aircraft, and plans to add Goa and Jaipur with its fifth aircraft this month.

visit us @ http://www.silkrouteholidays.com