IndiGo expects 'slight uptick' in costs due to new FDTL norms: CFO

New Delhi, Nov 4 (PTI) IndiGo expects a slight uptick in costs due to the implementation of the second phase of the revised flight duty time limitation norms for pilots.

During the analyst's call to discuss the airline's September quarter results, its Chief Financial Officer Gaurav M Negi mentioned that Aircraft On Ground (AOG), damp leasing of planes and implementation of the second phase of the new Flight Duty Time Limitation (FDTL) norms have cost dimensions.

"The FDTL norms that have kicked in from November will have some cost element playing out... we do anticipate a slight uptick in the costs given the implementation of FDTL. While it is a scaled-down version of what was initially proposed by the regulator, nonetheless there will be some incremental costs," Negi said.

The revised FDTL norms have been implemented in two phases -- one set of norms came into force on July 1, and the second set of norms was effective from November 1.

With respect to the second phase, the Directorate General of Civil Aviation (DGCA) has relaxed the norms, allowing more night landings.

Pilots' groupings have opposed the relaxation.

Earlier this year, DGCA, in its affidavit before the Delhi High Court, said the new FDTL norms will be implemented in a phased manner. Of the 22 proposed clauses, 15 were implemented from July 1 this year, and the remaining are to be effective from November 1.

The watchdog's revised CAR (Civil Aviation Requirement) 2024 related to the FDTL provides for more rest time for pilots amid concerns over pilot fatigue. Initially, the new norms were to come into force from June 1, 2024.

IndiGo is the country's largest airline and operates around 2,300 flights daily.

According to Negi, if the AOG does not trend downwards, then there is going to be a cost dimension.

Currently, the AOG is in the "40s" and is expected to be range-bound till the end of the year.

At a virtual media briefing on Tuesday, IndiGo CEO Pieter Elbers said, "Clearly, we're not happy with these AOG". Aircraft have been grounded due to issues with Pratt & Whitney engines.

Every day which passes by, the relative share of P&W engines as part of the total fleet is reducing, he noted.

Negi also said that damp leasing of aircraft as part of increasing the capacity has a cost element that is going to be creeping upwards, but added that the airline expects flattish or higher yield that will help offset these costs. PTI RAM BAL BAL