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IndiGo expects to be on ‘profitable growth’ path soon; working to address staff issues: Ronojoy Dutta

AME QUESTION PAPERby AME QUESTION PAPER
July 31, 2022
in NEWS
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IndiGo expects to be on the “profitable growth” path soon as the pandemic-triggered crisis seems to be ending and the airline is also working to address the issues of employees, according to its CEO Ronojoy Dutta.

His remarks to the staff also come against the backdrop of certain sections of the airline’s employees going on protest, earlier this month, against low salaries.

IndiGo, which will be completing 16 years next month, is the country’s largest airline with a domestic market share of nearly 57 per cent and has a fleet of more than 280 planes.

“I understand that every department still has its own unique challenges and I urge you to stay connected with the leadership of your department. I assure you that we are working on resolving each and every issue to ensure that we continue our journey to become better than the best!” Dutta said in a message to the employees.

The airline had a total of 26,164 employees in the last financial year.

Against the backdrop of some sections of the staff going on sick leave protest, IndiGo, on July 13, said it was in constant dialogue with its employees to take care of any issues or grievances.

“As business recovers, we are in the process of addressing some of the issues related to employee remuneration. This is an ongoing activity and we will continue to take employee feedback in the process,” it had said.

Dutta, who is set to retire as the Chief Executive Officer in September, in his latest message to the staff also said the carrier has been nimble at managing capacity, maximising revenue opportunities and managing the balance sheet.

The good news is that the crisis in the wake of the coronavirus pandemic seems to be ending, “our revenue performance is strong and we should be back on a path of profitable growth soon”, Dutta said.

In 2021-22, IndiGo reported an annual loss of Rs 6,162 crore, while revenue from operations stood at Rs 25,931 crore.

While acknowledging that the airline had to implement tough decisions, such as workforce retrenchment and leave without pay, to preserve and protect its financial health, he thanked the employees for their dedication, resilience and patience over the last two difficult years.

Pieter Elbers will be taking over the reins of the airline in the coming weeks.

Meanwhile, in his message to the shareholders ahead of the company’s annual general meeting on August 26, Dutta said the airline remains bullish on its prospects.

“With only 7 per cent of Indians currently avail airline services, we anticipate a 15-20 per cent annual growth for the foreseeable future. The aspirational demographics of the country provide the industry with a huge talent pool,” he said in the message that is part of the annual report for 2021-22.

 

 

 

 

 

 

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