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— Shashi Ashiwal

Target set: Mr Edgardo Badiali, Chief Executive Officer, GoAir.

Shubhra Tandon

Mumbai, Feb 23

Even as the Indian airline industry is bracing through troubled times, the Wadia-group owned GoAir continues to maintain that it will break even in 2008-09.

It is adding four more aircraft this year, is looking to hire pilots and cabin crew and adding new routes from April.

A little over a year, after taking over the reigns of GoAir’s operations, the country’s smallest carrier by fleet size, its Chief Executive Officer, Mr Edgardo Badiali, told Business Line that the journey for him has been “good and difficult”.

“I came in the year when the fuel prices were rocketing, the economic downturn, the unfortunate terror attacks, the exchange rates of dollar to rupee going up from Rs 40-50,” said Mr Badiali.

However, he said he was “confident” of growth and turnaround in the airline as all is going according to plan, which was to remain small during the difficult phase and then restart again. “We will post a profit in 2008-09. We had around 70 per cent load factor going for us in the current financial year and with the fuel prices now at a comfortable level, we are confident of achieving it.”

He declined to comment on how much profit GoAir is likely to report. The carrier follows April to March accounting year.

On how the airline be able to achieve it, Mr Badiali said the carrier has managed to keep its costs under control in the last few months and now the focus will be more on how to grow its revenues and demand.

“We have re-looked at the contracts from the suppliers, from partners etc. Also we moved some fixed cost into variable cost. There were also major costs during the initial operational phase, which will end now with new aircraft coming. There was also higher maintenance on the older fleet and some other extraordinary items which will go now,” he said.

He added, the airline shed multiple routes last summer, but is re-commencing some and adding new ones to its network. From beginning of April, operations to Hyderabad will re-start and Chandigarh and Amritsar will be added.

Currently, GoAir flies to eight destinations. Mr Badiali said their presence was “satisfactory” in western and northern India.

After adding Hyderabad, they need to decide whether to expand more in the South or head to North-East.

GoAir is also looking to grow its fleet size. “We will have a fleet of eight aircraft by June. One aircraft is coming next week, one in March and two more in May and June,” he said. The carrier operates Airbus 320s.

The low-cost carrier will also hire pilots, cabin crew and some ground handling staff. “We would need 7-8 captains and about 20-25 crew members. We have enough first officers and do not need much on cabin crew, as the unutilised capacity will be put on new flights,” said Mr Badiali. With the addition of these new pilots, GoAir will have about 40 pilots till June. Of the current, 24 are Indian and three are expatriates.

He also refused cartelisation on the air fares. “One always follows the competition. GoAir offers mix of all fares and will continue with them. A customer can always book in advance and avail cheap fares, and that continues.”

Whether British Airways has approached the carrier for any sort of alliance or investments in GoAir, he said, “No comments”. However, he added, “I am quite in favour of foreign carriers being able to invest in Indian airline companies. After all it’s an option, if you want you take it (funds) otherwise don’t.

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