Lawstreet Journal

Indigo to Raise Rs. 3,000 Cr. to Rs. 5000 Cr. by Leasing out Assets: Indigo CEO

Lawstreet Journal 17 Jun 2020 9:07pm

Image courtesy: Lawstreet Journal Business Indigo to Raise Rs. 3,000 Cr. to Rs. 5000 Cr. by Leasing out Assets: Indigo CEO

On Monday, 15 June 2020, Indigo Chief Executive Officer, Mr. Ronojoy Dutta said in an interview that the private airline company can raise Rs. 3,000 Cr. to Rs. 5,000 Cr, by leasing out its owned assets, including aircraft and engines.

“We own some aircraft, some ATRs, a lot of engines, some A320s,” he said. “We are putting them back on lease. That will give us Rs. 3,000-5,000 crore of funding. I am quite optimistic about the prospects of indigo.”

The chief executive officer also said that indigo will make a purchase of around 120 fuel-efficient neo aircraft over the next two years and will simultaneously retire nearly the same number of A320s. Hence, the capacity of the company will remain stable in the face of the pandemic.

Dutta said, “We have a lot of new planes coming. The terms of new planes are for discussion. (In case of) the old planes, we have obligations and we are meeting them. We are returning 120 old planes, getting 120 or so new planes coming over two years. Those are under discussion.”

The airline has cut its expenses by 30 percent and decided to slash employees’ salaries by 5-25 percent in March. It also implemented a ‘leave without pay’ program in May.

Dutta said the airline plans to focus on the efficiency of the aircraft in use, to reduce costs. The private company is currently operating at 30 percent of its capacity. It is also negotiating agreements with its suppliers for lower costs.

“Our relationship with lessors is a… Continue Reading...

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