IndiGo taking measures to address challenges in grounded aircraft: CEO

IndiGo, the largest airline in the country, is implementing a range of strategies to address the challenges posed by grounded aircraft, aiming to regain a positive net worth for the company, according to CEO Pieter Elbers.

During the 20th Annual General Meeting of InterGlobe Aviation, the parent company of IndiGo, Elbers stated the airline's goal of welcoming 10 crore customers in the current financial year. IndiGo is taking various measures to handle the Aircraft on Ground (AOG) situation, including collaboration with Turkish Airlines.

"We are dealing with some AOG situations... AOG is being dealt with through a whole range of mitigating measures. These measures were announced at the end of last year and have been effective in order to make sure that we deliver our capacity guidance that we provided to the market and shareholders earlier," the IndiGo CEO said.

Although specific numbers were not disclosed, it was noted that the airline has faced aircraft groundings due to engine-related issues.

Supply chain issues 

Elbers had previously said that around 40 planes were impacted by supply-chain challenges. While responding to inquiries about the company's balance sheet, IndiGo's CFO, Gaurav Negi, highlighted the impact of COVID-19 on their financials, noting that the net worth turned negative due to the pandemic. 

"The company is making a lot of efforts in order to ensure that the negative net worth comes back into the black. The last three quarters have been profitable, which has strengthened the balance sheet, and we continue to work hard to come back to a positive net worth and continue to repair the balance sheet that was impacted largely by COVID," he said.

IndiGo reported its highest-ever quarterly profit and total income for the June quarter, attributed to strong operational performance and favourable market conditions. Elbers also mentioned a steady influx of aircraft in the coming years, supporting the airline's long-term planning initiatives.

(With PTI Inputs)