IndiGo, the country’s largest airline, is learnt to have opted for lighter aircraft seats in a move that will allow it to fly more freight and cut annual fuel costs by ₹40 crore.
The operating empty weight (OEW) of every aircraft will come down by about 700 kg as the carrier is going in for thinner and lighter seats called Sicma Dragonfly, manufactured by France’s Zodiac Aerospace.
The ‘Dragonfly’ seats are expected to offer 1-2 inches of extra legroom. However, the thinner cushioning may be uncomfortable for some passengers. Seventy aircraft from IndiGo’s fleet have already been retrofitted with the SICMA seats, it is understood.
IndiGo, which operates a fleet of 85 single-aisle Airbus 320 aircraft, previously used ‘Weber 5600 seats’. Industry watchers say that all future aircraft procured by the budget airline will be pre-fitted with SICMA seats.
Recently, IndiGo placed the single-largest order ever for narrow body aircraft, signing an agreement with Airbus for 250 A320 neo (new engine option) planes.
Cost controlA spokesperson for IndiGo did not comment but analysts say that shaving off 700 kg from the OEW may help save around ₹30-40 crore of fuel cost annually.
“The bigger benefit is enhancement of belly cargo carrying capacity, which is a perpetual revenue source,” said Amber Dubey, Partner and India Head of Aerospace and Defence, KPMG. Lower seat weight also reduces the transportation and handling cost for seat replacements, he added.
Industry sources said that the IndiGo could generate at least ₹200 crore of additional annual revenue by enhancing cargo capacity.
“The extra cushion from cargo revenue gives a competitive edge to the airline to pass on a part as airfare discounts and enhance seat factors,” Dubey said
Aviation turbine fuel (ATF) accounts for the lion’s share of an airline’s operating expenditure, while cargo is a money spinner.
For the year ended March 31, 2014, the country’s top five domestic airlines recorded combined losses of ₹9,737 crore because of soaring ATF costs and rupee depreciation.
IndiGo’s net profit plummeted 60 per cent to ₹317 crore while revenue rose 17.5 per cent to ₹11,117 crore in the same period.