IndiGo profit falls 25 per cent on higher costs; plans to buy 50 ATR planes

The airline also announced plans to purchase a total of 50 ATR 72-600 turboprop aircraft, which normally have a seating capacity of 70 people.

By: ENS Economic Bureau | New Delhi | Published:May 10, 2017 5:26 am
 IndiGo, IndiGo profit, IndiGo profit falls, IndiGo-ATR planes, indian aviation, india news, indian express The country’s largest airline in market share had a profit after tax of Rs 583.78 crore in the same period a year ago.

IndiGo’s parent InterGlobe Aviation on Tuesday reported 24.6 per cent decline in profit at Rs 440.31 crore in the fourth quarter ended March 2017 as higher expenses took a toll on its bottom line. The country’s largest airline in market share had a profit after tax of Rs 583.78 crore in the same period a year ago.

The airline also announced plans to purchase a total of 50 ATR 72-600 turboprop aircraft, which normally have a seating capacity of 70 people. The airline plans to start regional operations with these planes by year end. IndiGo has signed a term sheet with ATR for purchasing 50 aircraft with the “flexibility to reduce the number of aircraft deliveries based on certain conditions,” it said.

The term sheet is subject to reaching a mutually satisfactory final purchase agreement with ATR and the engine manufacturer, it said. “Assuming that both the intended final purchase agreement are reached, IndiGo plans to launch its turbo-prop operation at the end of calendar 2017 and expects to induct up to 20 ATR aircraft by December 2018,” the release said.

IndiGo president Aditya Ghosh said that in support of UDAN, “we are embarking on a journey to build a nation-wide regional network and connect cities that have not benefited from the growth in Indian aviation”.

UDAN (Ude Desh ka Aam Naagrik) scheme seek to connect un-served and under-served airports at subsidised rates.
Air India has already started flights under the UDAN scheme, which offers one-hour flights at Rs 2,500 per ticket.

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