Interglobe Aviation Ltd
Chairman Speech
Dear Shareholders,
I write this at a time when we are in the midst of the COVID-19 pandemic. My sympathies
are with anyone who is directly or indirectly affected by the virus and I sincerely wish
for the good health and safety of all. Apart from the health crisis, the pandemic has also
presented us with an economic crisis. Across countries, we have witnessed a sharp
deceleration in growth, with airlines being one of the worst hit sectors.
FY 2020 has therefore been a challenging year for us, primarily due to this outbreak.
Both internationally and domestically, we have faced unprecedented demand slowdown and
revenue challenges due to travel bans, lockdowns and general anxiety towards travel.
During the crisis, the level of resilience and determination that our organisation has
demonstrated is really commendable.
As an example, during the pandemic, our entire operations and sales teams worked
together to rapidly convert some of our aircraft from passenger aircraft to all-cargo
aircraft. Consequently, we have been carrying up to twenty tons of cargo on passenger
airplanes to destinations in Asia and the Middle East. We deeply appreciate the support we
are receiving from our stakeholders during this time. Given the uncertainty, it is
difficult to predict the timing of return to normalcy, but we are determined to come out
of this crisis in a stronger position than when we entered. In that context, we are paying
particular attention to four critical aspects of our company including measures to ensure
the safety of our customers and employees, reduce our costs, strengthen our brand and
further enhance our employee culture.
Priority to customer safety and well-being
At this time, our priority is to ensure safety of our customers.
We have introduced a number of measures as a part of our new standard operating
procedures, which will enable us to minimise the impact of the virus. Some of these
procedures include:
• Disinfecting aircraft before every departure;
• Spray cleaning the aircraft at every arrival;
• Increased frequency of deep cleaning of the aircraft including wiping of all
touch points;
• Providing safety kits to our passengers;
• Mandatory masks on board for both crew and passengers;
• Placing hand sanitisers at various places;
• Discontinuance of meal services; and
• Ensuring social distancing norms at check in, boarding.
Further, Airbus aircraft cabin is equipped with HEPA filters, which ensures that the
virus cannot recirculate. The surfaces are cleaned thoroughly and passengers are wearing
face masks. So the risk of transmission by air or through droplets is minimal. Therefore,
I would like to stress that airlines are clearly the safest mode of transportation and we
want our customers to fly our airline with full confidence that we are safeguarding their
health and well-being.
Low costs remain fundamental to the way we do business
IndiGo is a pioneer in bringing low-cost aviation to India.
With our structural cost advantages coupled with operational efficiencies, we have been
able to build one of the lowest cost structures globally. During the current period of
crisis, when revenue has nearly dried up, airlines across the globe are emphasising cost
control and reduction of cash burn. We have also undertaken several cost reduction and
cash flow initiatives that have helped us to rationalise our costs further and utilise our
cash reserves judiciously. Specifically, we have taken the following actions:
• We have announced a salary cut in the range of 5 to 25% across the organisation
excluding certain employees at the lower pay grades.
• We have announced leave without pay for the months of May, June and July. This
action will result in employees foregoing an additional 3% to 17% of their pay.
• We have put on hold all discretionary expenses and have deferred certain capital
expenditure projects.
• We are looking at every element of cost and working hard with the partners for
negotiating better prices and terms.
• We will be rightsizing our capacity to the demand in the market. We value the
efficiency and structural low costs associated with NEO aircraft and thus we will continue
to substitute them for the older CEO aircraft. We are taking deliveries of all our new NEO
aircraft and balancing them by returning the CEO aircraft that we had committed to
earlier.
Our focus has shifted from profitability and growth to cash management and liquidity
This crisis has once again highlighted the importance of a strong balance sheet,
particularly, our cash reserves. In times of distress, a strong cash balance built up
prudently over the years has provided IndiGo with a cushion to navigate through these
difficult times. As a result, we ended the FY 2020 with a healthy total cash balance of
204 billion rupees of which 89 billion rupees was free cash. Along with this, we have
taken and will continue to take a number of actions to shore up our liquidity.
In terms of liquidity measures, we are working on a number of initiatives such as:
• Returning older CEOs and getting deliveries of NEOs:
The CEOs that we are operating have a higher ownership cost driven by higher
maintenance cost and higher fuel burn. As part of our fleet plan we are working on
naturally retiring a number of these CEO aircraft. We will be taking the deliveries of new
planes in quarter 1 and 2 of FY 2021 which are more cost effective and we are in
discussions with manufacturers regarding deliveries beyond this period. Further, we have
already financed majority of the deliveries through operating lessors, which will help in
improving
our liquidity.
• Freezing of supplementary rentals: We have been talking to our lessors to freeze
our supplementary rentals and better align these with our utilisation for a period of 9
months.
Since a large number of aircraft are currently grounded and will be operated at much
lower utilisation levels going forward, there is no immediate need for us to provide
for these.
• We have reached out to our various suppliers to provide us more favourable
credit terms.
• Moreover, while we have paid dividends in the past, we will not pay dividends
this year to conserve liquidity.
All these measures will help us generate additional liquidity of approximately 30-40
billion rupees. We are also looking to raise finance against the various unencumbered
assets of IndiGo, which could be a source of additional liquidity for us.
Phased capacity ramp-up and network expansion to eventually reach pre-pandemic levels
IndiGo has been instrumental in providing the much needed aviation infrastructure in
the country leading to growth in trade and tourism and spurring overall economic growth.
Although the pandemic has led to a deferment of our near term growth plans, we are hopeful
that this will not last for very long and we will bounce back soon. We see our vast
domestic network as the key to successful international operations, which I believe is
extremely difficult for any other airlines to replicate. While we are likely to face
revenue pressures in the short-term, the sharp decrease in fuel costs nevertheless allows
us to fly a large part of our network profitably.
Delivering a hassle-free experience, particularly during tough times
Our endeavour has always been to deliver a hassle-free experience from the initiation
of ticket booking till the completion of journey. Exemplary customer service is at the
core of everything we do, and each year we actively work towards enhancing the same.
Our Net Promoter Score is comparable with low-cost carriers around the world. We find
customer feedback to be the most valuable source of information and thus we place a
significant amount of Management's time and attention towards the analyses of such
information in order to identify root cause of issues reported, evaluate areas of
improvement and align ourselves to best practices.
For the third time in a row, IndiGo was awarded 'Asia's Best Low-Cost Airline' by
TripAdvisor's 2019 Travellers' Choice Airline Awards. This award is based on direct
customer feedback and holds a great value to us. Further, our contribution towards
building a world-class airline infrastructure in the country has been recognised on
several forums. For this, IndiGo was awarded the 'Best Domestic Airline' at FlCCI's first
edition of Travel and Tourism Excellence Award.
IndiGo has become a strong global brand
During the year, we further strengthened our international partnerships and enhanced
our brand presence. A codeshare agreement with Qatar Airways enabled us to extend the
IndiGo experience to passengers across the world. IATA membership has expanded our global
presence in terms of enhanced partnership portfolio and alignment to the best global
practices. Furthermore, we added 12 global online travel agencies ("OTAs") to
our network and organised GSA meetings across the globe as a part of our brand outreach.
IndiGo has been recognised among the most valuable and strongest airline brands, as per
the Brand Finance Airlines 50 report for 2020. This is very encouraging news for us during
these unprecedented times and is a testament to all the hard work put in to scale-up our
operations during the last year.
Working with a highly dedicated and talented pool of professionals
At IndiGo, we are proud to be an equal opportunity employer for people with diverse
backgrounds and cultures. We remain the employer of choice and this is reflected by the
fact that we have almost doubled our employee count in the last three years with a total
headcount of 27,812 as of March 31,2020. Our Human Resources function focuses on training
and skill development through state-of-the-art academy, called "ifly".
I am proud to state that our employees have once again proved to be our pillars of
strength by demonstrating true dedication and courage in the selfless service of our
customers and our nation, ferrying emergency relief supplies during the pandemic.
Fulfilling our responsibilities towards the community and the environment
We, as an organisation, recognise our role towards sustainable growth and have
undertaken several initiatives to help the community. We have impacted the lives of over
64,500 women through financial inclusion and other income generating activities. Education
is another key area of work and we have enhanced the lives of over 47,500 children through
various education interventions. We have also installed several biogas units in our
pursuit to reduce greenhouse gas emissions.
IndiGo continues to support the Government during natural disasters. More than 13
tonnes of relief materials were provided during Assam, Karnataka, Maharashtra and Patna
floods.
During the lockdown, we operated over 30 relief flights in the country transporting
medical equipment and other requisite resources across the country at our own cost.
"In the midst of every crisis, lies great opportunity"
The pandemic has presented several challenges to the aviation industry in terms of
liquidity and change in consumer expectations. Even with these challenges, I am very
bullish on the future of Indian aviation, as India possesses all the underlying drivers
required for rapid growth in this industry.
Furthermore, I believe that IndiGo is best placed to lead this growth in Indian
aviation given its financial strength, efficient fleet and strong market position across
India and neighbouring countries.
I would like to sum up by saying that IndiGo is likely to soon resume its path of rapid
growth. It is imperative for us to remain focused on liquidity and profitability with no
compromise on the operational excellence for which we are well known. I am thankful to our
customers and our shareholders for their continued support and confidence. We are on a
mission to build the best air transportation system in the world, and I am optimistic
about the prospects the future holds for us.
| Sincerely, |
| Ronojoy Dutta |
| Whole Time Director and Chief Executive Officer |
  Â
Interglobe Aviation Ltd
Directors Reports
Dear Members,
Your Directors ("Board of Directors" or "Board")
are pleased to present the nineteenth Annual Report of InterGlobe Aviation Limited
("your Company" or "we" or "IndiGo") along with the audited
financial statements for the financial year ended March 31, 2022 ("FY 2022").
Wherever required, the consolidated performance of your Company and its subsidiary has
also been provided.
1. Financial Results
The standalone and consolidated financial highlights of your Company's
operations are summarised below:
(Rupees in million, except earnings per share)
| Particulars |
Consolidated |
Standalone |
|
FY 2022 |
FY 2021 |
FY 2022 |
FY 2021 |
| Revenue from operations |
259,309.27 |
146,406.31 |
259,309.27 |
146,406.31 |
| Other Income |
7,255.98 |
10,369.64 |
7,245.42 |
10,363.32 |
| Total Income |
266,565.25 |
156,775.95 |
266,554.69 |
156,769.63 |
| Profit / (Loss) before Tax |
(61,536.84) |
(58,180.70) |
(61,710.25) |
(58,297.92) |
| Current Tax |
(4.12) |
78.68 |
- |
|
| Deferred tax credit / (charge) |
(77.49) |
37.75 |
- |
- |
| Profit / (Loss) after Tax |
(61,618.45) |
(58,064.27) |
(61,710.25) |
(58,297.92) |
| Other Comprehensive Income / (Loss) net of tax |
10.65 |
(5.81) |
29.65 |
(16.65) |
| Total Comprehensive Income / (Loss) |
(61,607.80) |
(58,070.08) |
(61,680.60) |
(58,314.57) |
| Earnings per equity share of the face value of Rs. 10 each |
|
|
|
|
| Basic (Rs.) |
(160.01) |
(150.89) |
(160.25) |
(151.49) |
| Diluted (Rs.) |
(160.01) |
(150.89) |
(160.25) |
(151.49) |
2. Company's Performance
On a consolidated basis, your Company achieved a total income of Rs.
266,565.25 million for FY 2022, higher by 70.03% over the previous year's total income of
Rs. 156,775.95 million. Your Company reported a net loss of Rs. 61,618.45 million for FY
2022 against a net loss of Rs. 58,064.27 million for the previous year.
On a standalone basis, your Company achieved a total income of Rs.
266,554.69 million for FY 2022, higher by 70.03% over the previous year's total income of
Rs. 156,769.63 million. Your Company reported a net loss of Rs. 61,710.25 million for FY
2022 against a net loss of Rs. 58,297.92 million for the previous year.
3. Performance of Agile Airport Services Private Limited
("Agile" or "Subsidiary Company")
Agile is a wholly owned subsidiary of your Company and is engaged in
the business of providing ground handling and other allied services to your Company at
various airports in India.
The total income of Agile for FY 2022 was Rs. 3,719.09 million, higher
by 25.91% over the previous year's total income of Rs. 2,953.87 million. The net profit
was Rs. 91.80 million indicating a reduction of 60.71% over net profit of Rs. 233.65
million for FY 2021. Pursuant to Section 129(3) of the Companies Act, 2013
("Act") read with Rule 5 of the Companies (Accounts) Rules, 2014, as amended
from time to time, a statement containing the details of performance and salient features
of the financial statements of the Subsidiary Company in form AOC -1 is annexed to the
consolidated financial statements.
In compliance with the provisions of Section 136 of the Act, the
audited financial statements of the Subsidiary Company are uploaded on the Investor
Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/subsidiary-financials/2021-22/Finanical-Statements-Agile-FY-21-22.pdf
Your Company has adopted a policy for determining material subsidiaries
pursuant to Regulation 16(1)(c) of the SCBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 ("SCBI LODR Regulations") which is available on
the Investor Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/InterGlobe-Aviation-Limited-Policy-on-Material-Subsidiary.pdf.
Your Company has no material subsidiary as on date.
aviqtion-limited-policy-on-mqteriql-subsidiqry.pdf. Your Company has no
material subsidiary as on date.
4. Operational Performance
A. Operations and growth
Your Company operated 1,574 peak daily flights and carried over 49.70
million passengers during FY 2022 as compared to 1,301 peak daily flights and 30.70
million passengers in FY 2021.
Your Company operated:
(a) Scheduled services to 88 destinations including 07 new destinations
(b) 30 unique non-scheduled destinations
(c) 3,237 cargo in cabin flights,
(d) 991 charter flights
B. Serving the nation for repatriation and bubble flights
Your Company operated 35 Operation Ganga flights and 22,183 flights
under the Government's bubble flights arrangements with other countries for FY 2022. Your
Company also addressed the national need during the pandemic by operating ad-hoc
repatriation flights to 04 new countries and 05 destinations outside its network.
C. Inducting aircraft and procedures to save fuel
Our fleet as on March 31, 2022, consists of 41 Airbus CEO, 199 Airbus
NEO and 35 ATR aircraft. During FY 2022, your Company inducted 49 new fuel-efficient
aircraft powered by PW1100G and CFM LEAP-1A engines.
Your Company ranked No.1 for On-Time Performance (OTP) at key metro
cities. Additionally, your Company also achieved a technical dispatch reliability of
99.95% as published in AIRBUS IDOLS for reliability.
Your Company has obtained In-Principal approval for induction of P2F
Freighter/CarGo aircraft under the existing Air Operator Certificate (AOC). Induction of
CarGo aircraft under the same AOC will reduce the time and the process for separate AOC
for dedicated and CarGo operations. Your Company would soon get the Extended Diversion
Time Operations (EDTO), for 120 minutes from the Director General of Civil Aviation
(DGCA), to fly on direct routes over-sea for 120 minutes on A320 family aircraft. This
would help in achieving shorter routes and saving fuel. To achieve operational excellence,
your Company launched awareness campaigns for adoption of fuel-efficient techniques and
collaborated with the regulatory authorities and the Indian Air-Force to facilitate
airspace optimisation, with a clear focus on efficiency and safety.
Your Company was quick to adapt to global travel requirements and
operated repatriation flights to Ukraine to help Indians come home safe.
Pilot Training
Your Company during the pandemic and past pandemic continued skilling
Pilots to keep their knowledge and skills current. The period was transformational,
multiple programs were converted from traditional classroom learning session to a blended
learning training format which included - Classroom sessions, Virtual classes - Instructor
led and E-learning (LMS), however keeping learning quality as paramount.
In the blending learning format, focus of the classroom session was to
clear doubts, meet trainers and colleagues to ensure that the contact aspect of human
connect is not missed. The E-Learning programs act as a knowledge retainer - As it gives
our pilots access to learning information 24*7 an opportunity to revise their learning on
the go and in the comfort and safety of their homes. Your Company has also converted our
annual pilot recurrent training for both ATR and Airbus into blended learning, saving
overall cost and time. The initial course was 05 days and post DGCA approval we have been
able to create a blended format ensuring efficient use of pilot utilization.
Your Company also continued inducting junior first officers to ensure
pipeline continuation and to effectively manage future requirements. Your Company has also
created a virtual training program for conversion from A320 to A321, enabling Pilots to
fly both type of variants seamlessly.
Your Company also revamped the recurrent simulator training program and
ensured that new scenario-based training was incorporated for our Pilots to manage all
types of environment & situations during line flying and enhance their learning
experience at IndiGo. Your Company also launched a new enhanced command development course
as per Global standards to enhance the quality of our new Captains.
Your Company was the first airline in India to implement the foundation
of CBTA (Competency based training assessment) AND CAT (evidence based training), this was
in line with ICAO and IATA standards. This develops the important quality of Resilience
amongst the pilots which was required to tide over the last two years.
Your Company also trains all Pilots (ATR & Airbus) on Global
Reporting Format (GRF) - a mandatory requirement to understand the reporting format on
runway surface conditions for effective calculation of take-off and landing performance -
fulfilling regulatory compliance, enhanced performance and safety.
Your Company has undertaken ground classes to revalidate Airbus Type
Rating of Pilots issued with Letter of Intent (LOI) to ensure readiness of their
availability in the future. Your Company also successfully added to its training capacity
by getting approvals for training rooms for Engineering personnel and Cabin crew training
at its Delhi hangar.
Impact of Covid - 19
Covid-19 continues to keep the world on alert, however countries all
over the world and India have been continuously finding ways to reduce the spread of the
Covid-19, creating new processes to facilitate safety and security while ensuring business
revival. Your Company saw revival of business post the second wave, while managing with
limited visibility of scheduled operations and change in regulations month on month due to
the dynamic spread of Covid-19 keeping operations fluid.
Employees: Your Company proactively communicated timely and accurate
Covid-19 related messaging to its employees, providing the workforce with up-to-date news
and information to provide reassurance throughout the pandemic.
Operations: Your Company experienced a high demand for charters from
UAE and managed the demand successfully, with strict travel restriction, in terms of
03-point checks and reduced capacity.
Your Company, towards the end of 2021, saw excellent travel demand,
however the sudden surge imposed a unique challenge of managing manpower and available
resources. Innovative planning and optimum utilisation of resources kept our operations
tight and turn arounds safe and quick.
Post the second wave, your Company continues to ensure that adequate
crew/airport staff is available to ensure business continuity. Additionally, new processes
are continuously being implemented and reviewed in compliance with the Ministry of Civil
Aviation ("MOCA") guidelines.
Measures taken to mitigate the impact: Being India's largest carrier by
market share and carrying the largest number of passengers by air in India, we understood
our responsibility to our customers, the industry, and the country.
Your Company continues disinfection and cleaning of all aircraft on
arrival to help reduce the spread of the virus. Additionally, when parked at night, all
aircraft undergo deep cleaning with focus on all touch points such as tray tables, arm
rests, seat belts, lavatory doors and overhead nozzles. Every aircraft is fumigated once a
week and all customer coaches are sanitized after each trip, to provide a safe travel
experience. Your Company, as prescribed by the DGCA, eased the requirement of wearing face
shield, however continued with wearing mask and maintenance of social distancing.
In FY 2022, your Company continued focus on contactless travel
experience at the airports. Your Company created more awareness among the passengers on
how they can web check-in, fill the health declaration form online, pay for all ancillary
products and add a print baggage tags from home. These initiatives ensured that more than
83.1% check-ins were done online, and 37.80 million bag tags had been printed by our
passengers.
With the continuous changes in the state and international travel
regulations, your Company created a centralised page on its website which is updated
regularly to help customers become aware of the latest travel guidelines. Additionally,
relevant changes in state and international travel regulations were communicated to the
passengers through various digital channels such as social media, emailers, SMS and
WhatsApp. At the airports, we have introduced self-check-in and print baggage's tags and
also enabled UPI payment option for a true contactless experience.
Your Company also enabled customers to self-board at the boarding gate,
further reducing human contact. In these difficult times, your Company announced a special
offer - 'Tough Cookie' and offered a 25% discount on airfare for all doctors and nurses,
as a gesture to thank them for being at the forefront of the battle against the Covid-19
outbreak. These Covid Warriors were facilitated at various touch points by the operations
and the marketing teams.
Your Company has transported the highest number of Covid Vaccines in
India since January 2021. With the end of FY 2022 and start of summer schedule, your
Company saw the opening of international markets and a steady revival of operations.
Your Company complied with the regulator regarding staggered meal
service on board in order to restrict customers consuming meals together. Discontinued
food service on flights less than 02 hours as staggered service was not practical on these
flights due to short flight duration. An Inflight Service Bubble was introduced
restricting cabin crew to their service zones that minimised spread of virus between
customer to crew and vice versa. Effective November 2021, we resumed service on flights
less than 02 hours.
This year has been one of transition. With the pandemic easing out, and
vaccination rates going up, the regulator enforced resumption of contact classes. Your
Company has successfully blended contact classes with virtual training while ensuring
optimum training quality and learning efficacy.
Your Company has worked with the regulator and has been approved to
continue recurrent training/drills virtually. All non-mandatory and corporate trainings
continue virtually, expertly balancing learning quality and cost efficiency. Our crew and
ground employees were trained on various post Covid-19 scenarios, instilling in its
employees a strong ability to create hassle free experiences for customers travelling with
us. Your Company got an extraordinary approval for load and trim training (the only
airline in India) to conduct conversion training, differences training and loading
competency training virtually for international airports.
5. Dividend
Your Company has adopted the 'InterGlobe Aviation Limited - Dividend
Distribution Policy' in compliance with Regulation 43A of the SEBI LODR Regulations. The
Policy sets out the parameters and factors to be considered by the Board in determining
the distribution of dividend to its Members and / or retaining profits of your Company.
The Dividend Distribution Policy is available on the Investor Relations section of the
website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/InterGlobe-Aviation-Limited-Dividend-Distribution-Policy.pdf.
Based on your Company's performance, cash flow position and the loss
incurred during FY 2022, the Board has not recommended any dividend on the equity shares
of your Company.
6. Amount to be carried to Reserves
Your Directors do not propose to transfer any amount to reserves.
7. Arbitration Proceedings filed with the London Court of International
Arbitration
InterGlobe Enterprises Private Limited and Mr. Rahul Bhatia (the
"IGE Group") had submitted a Request for Arbitration dated October 01, 2019, to
the London Court of International Arbitration under the Shareholders' Agreement dated
April 23, 2015 (as amended on September 17, 2015) ("Shareholders Agreement")
executed between, inter-alia, the IGE Group, Mr. Rakesh Gangwal, The Chinkerpoo Family
Trust, Ms. Shobha Gangwal (together with Mr. Gangwal and The Chinkerpoo Family Trust, the
"RG Group"), and your Company. In the arbitration proceedings, the IGE Group had
sought certain reliefs against the RG Group, including in relation to compliance with the
Shareholders Agreement and your Company's Articles of Association ("Articles")
as well as damages. The RG Group also sought certain reliefs against the IGE Group,
including to carry out all requisite steps and actions, provide consents and assistance to
remove certain provisions from your Company's Articles. The Company was named as a proper
party to the arbitration and no monetary claim, including any compensation, was sought
from the Company by the IGE Group or the RG Group.
The arbitral award was issued in the Arbitration proceedings on
September 23, 2021 (the "Award"). The Award contains no directions to the
Company. Further, the Award directs that the costs incurred by the Company in relation to
the Arbitration proceedings be reimbursed by the IGE Group. The arbitration proceedings
with respect to the Company have concluded, and as per the directions in the Award, the
Company has received reimbursement of costs, from the IGE Group in relation to the
arbitration. The Award does not adversely impact the financial results of the Company.
8. Amendment to the Articles of Association
Pursuant to the joint requisition dated November 25, 2021, made by the
IGE Group and the RG Group (collectively the "Requisitionists"), collectively
holding 74.44% of the paid-up equity shares of your Company on the date of requisition, an
Extraordinary General Meeting of the Members of your Company was convened on Thursday,
December 30, 2021, for removing the Transfer Restriction Articles from the Articles of
Association of your Company. Transfer Restriction Articles means Articles 1.6 to 1.15
(Transfer of Equity Shares), 1.16 to 1.20 (Acquisition of Shares) and 2A (Other provisions
on Equity Shares).
The Members of your Company, at the said Extraordinary General Meeting,
had approved the Special Resolution for amendment in the Articles of Association of your
Company by deletion of the Transfer Restriction Articles therefrom.
9. Employee Stock Option Scheme
Pursuant to approval of the Members of your Company on June 25, 2015,
your Company had adopted 'InterGlobe Aviation Limited - Employee Stock Option Scheme 2015'
("Scheme") which was amended on September 07, 2016. Under the Scheme, your
Company grants share-based benefits to the eligible employees by granting stock options
("Options"), with a view to attract and retain talent and encouraging employees
to align their individual performances with the Company's broader growth objectives.
During FY 2022, there has been no change in the Scheme and the Company continues to comply
with the provisions of the SEBI (Share Based employee Benefits and Sweat Equity)
Regulations, 2021, as amended ("SEBI SBEB Regulations").
The disclosure, in compliance with the SEBI SBEB Regulations, is
uploaded on the Investor Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/other-related-documents/2021-22/Statement-under-
Reg-14-of-the-SEBI-Share-Based-Employee-Benefits-and-Sweat-Equity-Regulations-2021.pdf
10. Increase in Share Capital
Pursuant to the allotment of 344,729 equity shares of Rs. 10 each upon
exercise of Options by the eligible employees under the Scheme, the issued, subscribed,
and paid-up share capital of your Company increased from 384,910,000 equity shares as on
March 31,2021, to 385,254,729 equity shares of Rs. 10 each as on March 31, 2022,
aggregating to Rs. 3,852.55 million.
11. Related Party Transactions
Your Company had adopted 'InterGlobe Aviation Limited - Policy on
dealing with Related Party Transactions' ("RPT Policy") in compliance with
Regulation 23 of the SEBI LODR Regulations. During FY 2022, there has been no change in
the RPT Policy. The transactions entered by your Company with its related parties were in
compliance with the RPT Policy and in the best interest of your Company. The RPT Policy is
available on the Investor Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/IGAL-Policy-on-Related-Party-Transactions-2019.pdf
All the contracts/ arrangements/ transactions entered into by your
Company with its related parties during FY 2022, were in its ordinary course of business
and on an arm's length basis and were approved by the Audit Committee. Your Company has
obtained necessary approval, as required, in accordance with the RPT Policy.
During FY 2022, your Company had not entered into any arrangement /
transaction / contract with its related parties which could be considered material and
required approval of the Board or the Members. Accordingly, the disclosure of the
particulars of the related party transactions in form AOC -2 as required under Section
134(3)(h) of the Act is not applicable.
For further details of related party transactions during the year,
please refer to note number 35 of the notes forming a part of the financial statements,
attached to the Annual Report.
Pursuant to Regulation 23 of the SEBI LODR Regulations, your Company
had filed to the stock exchanges the details of related party transactions on half yearly
basis.
12. Directors and Key Managerial Personnel
a) Directors
As on March 31, 2022, the Board comprised of eight (8) members with an
appropriate mix of Non-Executive Directors, Executive Directors, and Independent
Directors, which is in compliance with the provisions of the Act, the SEBI LODR
Regulations and is also aligned with the best practices of Corporate Governance.
In compliance with the provisions of Sections 196, 203 and Schedule V
to the Act, Mr. Rahul Bhatia, Non-Executive Director was appointed as the Managing
Director of your Company, not liable to retire by rotation, for an initial period of five
years, effective from February 4, 2022. His appointment was approved by the Members of
your Company through postal ballot on March 18, 2022.
Mr. Rakesh Gangwal tendered his resignation from the position of
Non-Executive Director of your Company with effect from February 18, 2022. The Board
appreciated the contribution made by Mr. Gangwal during his appointment as a Director on
the Board of your Company.
Dr. Anupam Khanna completed his second term as an Independent Director
of your Company on March 26, 2022. Consequently, Dr. Khanna ceased to be a Director of
your Company from the said date. The Board places on record its appreciation for the
contribution made by Dr. Khanna as an Independent Director on the Board of your Company.
Mr. Meleveetil Damodaran stepped down as Chairman and Independent
Director of your Company on attaining the age of 75
years on May 3, 2022, in terms of Regulation 17(1fl) of the SEBI LODR
Regulations. The Board places on record its appreciation for the contribution made by Mr.
Damodaran as the Chairman and Independent Director on the Board of your Company. [Mir.
Meleveetil Damodaran has been appointed by the Board as a Non-Independent Non-Executive
Director (as Additional Director) with effect from July 16, 2022, subject to approval of
the Mlembers of the Company at the ensuing Annual General Mleeting],
Pursuant to the provisions of Sections 149, 161 and other applicable
provisions of the Act and the SEBI LODR Regulations and on the recommendation of the
Nomination and Remuneration Committee, the Board at its meeting held on April 12, 2022,
approved appointment of Mr. Vikram Singh Mehta and Air Chief Marshal (Retd.) Birender
Singh Dhanoa as Independent Directors (as Additional Directors) on the Board, not liable
to retire by rotation, subject to receipt of security clearance from the MOCA and further
subject to approval of the Members of your Company. The appointments of Mr. Mehta and ACM
Dhanoa (Retd.) will be effective from the date of receipt of security clearance from the
MOCA [Pursuant to receipt of security clearance approval from MOCA, the appointment of Mr.
Mehta and ACM Dhanoa (Retd.) as the Independent Directors on the Board is effective from
May 27, 2022].
Mr. Mehta has been appointed in the vacancy caused due to completion of
second term of Dr. Anupam Khanna as an Independent Director. ACM Dhanoa (Retd.) has been
appointed in the vacancy caused due to Mr. Meleveetil Damodaran stepping down as an
Independent Director on attaining the age of 75 years on May 3, 2022. As per Section 161
of the Act, Mr. Mehta and ACM Dhanoa (Retd.) will hold office till the ensuing Annual
General Meeting ("AGM") and are eligible for appointment as the Independent
Directors of your Company. The Board is of the opinion that Mr. Mehta and ACM Dhanoa
(Retd.) have relevant experience, expertise and integrity for holding the position of the
Independent Directors on the Board.
Mr. Ronojoy Dutta has decided to retire by resignation as the Whole
Time Director and CCO of the Company with effect from September 30, 2022. The Board places
on record sincere thanks to Mr. Dutta for effectively leading the Company with a steady
hand through the most turbulent period in the Company's history and the aviation industry
globally.
Pursuant to Sections 161,196, 197, 203 read with Schedule V and other
applicable provisions of the Act read with the rules made thereunder, the Board has
approved the appointment of Mr. Petrus J.T. Clbers as the Chief executive Officer
("CEO") and as a Whole Time Director of the Company, subject to receipt of
security clearance from MOCA, the approval of the Central Government, if required, and the
approval of the Members of your Company. The appointment of Mr. Elbers as the CEO is
expected to be effective from October 01,2022.
Mr. Anil Parashar, Non-Executive Director, retires by rotation and
being eligible, offers himself for reappointment at the ensuing AGM.
The Notice of AGM includes the proposal for appointment and
re-appointment of Directors as stated above.
Your Company has received declarations from all Independent Directors
confirming that they meet the criteria of independence as laid down under Section 149 of
the Act and Regulation 16 of the SEBI LODR Regulations and complied with the Code for
Independent Directors prescribed in Schedule IV of the Act. During FY 2022, there has been
no change in the circumstances affecting their status as Independent Directors of your
Company.
None of the Directors of the Company is disqualified to act as a
Director as per the requirement of Section 164 of the Act.
b) Key Managerial Personnel
Mr. Gaurav Manoher Negi was appointed as the Chief Financial Officer of
your Company with effect from March 29, 2022, in place of Mr. Jiten Chopra, who resigned
with effect from March 28, 2022. Mr. Negi has been associated with your Company since
December 2021 and has earlier held the position of Head - Governance, Risk and Compliance.
The Board places on record its appreciation for the contribution made by Mr. Chopra during
his tenure as the Chief Financial Officer of the Company.
13. Number of meetings of the Board
The Board met 13 times during FY 2022. The details of meetings of the
Board and attendance of the Directors at the Board meetings are given in the Report on
Corporate Governance which forms a part of the Annual Report.
14. Committees of the Board
As on March 31, 2022, the Board had the following five committees:
i. Audit Committee
ii. Nomination and Remuneration Committee
iii. Risk Management Committee
iv. Corporate Social Responsibility Committee
v. Stakeholders Relationship Committee
The details of the composition, terms of references, and number of
committee meetings held during FY 2022 and the attendance of the committee members at each
meeting are given in the Report on Corporate Governance which forms a part of the Annual
Report.
15. Board Evaluation
Pursuant to the provisions of the Act and the SEBI LODR Regulations, an
evaluation process was carried out to evaluate performance of the Board and its
committees, the Chairman of the Board, and all Directors, including Independent Directors.
The evaluation was aimed at improving the effectiveness of all these constituents and
enhancing their contribution to the functioning of the Board.
We had reported in the Board's Report for FY 2021 that, during that
year, on the recommendation of the Nomination and Remuneration Committee (Committee), an
independent external expert in Board evaluation, was engaged by the Management to
undertake such evaluation. He had carried out the exercise through questionnaires, both
numeric as well as qualitative responses, that were sent directly to the Board members on
a confidential basis. The independent external expert had then followed through with
confidential individual conversations with each Board member and developed separate
evaluation reports. Subsequently, the independent external expert had collated
confidential reports for (a) the Board as a Whole, (b) Chairman of the Board, (c)
Individual Directors, both Independent and Non- Independent, and (d) for each of the Board
committees separately. The assessment of individual Directors was sent in separate sealed
envelopes to the concerned Directors. The results of evaluation of the Board and its
various committees were subsequently discussed by the Board at its meeting and the areas
for improvement of the functioning of the Board and committees were noted.
In view of the in-depth evaluation conducted in the previous year, for
FY 2022, upon the recommendation of the Committee, a robust internal evaluation of the
Board was conducted. The questionnaires for this evaluation were developed based on
improvement areas identified last year and coordinated directly by the Chairman of the
Board.
In a separate meeting of the Independent Directors, performance of the
Non-Independent Directors, and the Board as a whole was also discussed, taking into
account the views of Executive Directors and Non-Executive Directors.
16. Remuneration Policy
Your Company had adopted the 'InterGlobe Aviation Limited - Nomination
and Remuneration Policy' in compliance with Section 178 of the Act and Regulation 19(4)
read with Part D of Schedule II to the SEBI LODR Regulations, for identification,
selection and appointment of Directors, Key Managerial Personnel (KMPs) and Senior
Management of your Company. The Policy lays down the process and parameters for the
appointment and remuneration of the KMPs and other senior management personnel and the
criteria for determining qualifications, highest level of personal and professional
ethics, positive attributes, financial literacy, and independence of a Director. The
Policy is available on the Investor Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/InterGlobe-Nomination-and-Remneraion-Policy.pdf.
17. Succession Planning
Your Company has been following a rigorous process of leadership talent
review, named "Talent Councils" ever since FY 2019. We continue to follow an
established process to identify and nurture talented employees at an early stage with the
goal of succession planning. Once a year, we discuss succession planning for key positions
with the various business function heads within your Company. Competencies, skills, and
experience required for performing leadership roles, at the level of Vice President and
above are clearly established. At the yearly Talent Council meetings, we take time to
review the performance and potential of each senior leader in depth. We then compare this
with the job specifications of the corresponding positions. This review process forms the
basis of people identification and development for filling all top positions. In addition,
your Company's Human Resource function continually maps the external market to identify
talent for which immediate internal candidate is not available. Ever since FY 2021, we
have been focused on identifying talent at a lower than Vice President level and have been
taking specific measures to ensure the development of these emerging leaders.
Your Company is in the forefront of developing talent across various
levels of skills, both across Crew and Non-Crew. Our in-house training academy, ifly, aims
to identify training gaps and solutions and provide learning opportunities to enhance
skills and experience across behavioural and technical competencies, with enhancing
leadership skills to create an army of leaders for IndiGo.
18. Risk Management
Your Company has put in place a structured Enterprise Risk Management
framework ("ERM framework") based on the guiding principles from SEBI of
identifying, assessing and mitigation of risks. It is an integral part of decision-making
for your Company and is dynamic in nature, undergoing continuous improvement. The ERM
Framework follows an annual process of setting objectives, identifying key risks on an
ongoing basis, developing a mitigation action plan and monitoring.
The Risk Management Committee (Committee) has been empowered to frame,
implement, and monitor the risk management practices of your Company. The Committee has
been entrusted for systematically overseeing, reviewing, and updating the risk management
calendar, based on certain risks becoming more important during the year. The Committee
meets on regular intervals and discusses risks relating to liquidity & profitability,
demand & revenue, cyber threat & data protection, business continuity plan,
employee health & labour relations, sustainability & climate change, airline
safety & security, adverse regulatory changes & litigation, competition,
reputation, unfavorable fuel & forex movement and any other new risk that may be
identified by the Management.
The Audit Committee has an additional oversight in the area of
financial risks.
A note on key risks of your Company is given in the Management
Discussion and Analysis Report which forms a part of the Annual Report.
19. Corporate Social Responsibility
A brief outline of the Corporate Social Responsibility
("CSR") Policy of your Company and the initiatives undertaken by your Company on
CSR activities during the year are set out in Annexure - A to this Report, in the format
prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
For other details regarding the CSR Committee, please refer to the
Report on Corporate Governance, which forms a part of the Annual Report.
The Corporate Social Responsibility Policy as approved by the Board is
available on the Investor Relations section of the website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/InterGlobe-Aviation-Limited-Corporate-
Social-Responsibility-Policy-2.pdf.
20. Statutory Auditors
S.R. Batliboi & Co. LLP (Firm Registration no. 301003E/E300005) was
appointed as the Statutory Auditors of your Company at the 16th AGM held on August 27,
2019, for a term of five consecutive years from the conclusion of the 16th AGM till the
conclusion of the 21st AGM of your Company, in accordance with the provisions of Section
139 of the Act.
The Reports given by the Statutory Auditors on the standalone financial
statements and the consolidated financial statements of your Company for FY 2022 form part
of the Annual Report. The Reports do not contain any qualification, reservation or adverse
remark or disclaimer by the Statutory Auditors.
21. Secretarial Auditors
Sanjay Grover & Associates, firm of practicing Company Secretaries
(Firm Registration no. P2001DE052900) ("Secretarial Auditors"), carried out the
secretarial audit for FY 2022 in compliance with the Act and the Rules made thereunder,
the SEBI LODR Regulations and other applicable regulations as prescribed by the SEBI,
Foreign Exchange Management Act, 1999, as amended and other laws specifically applicable
to your Company. The Secretarial Audit Report in form MR-3 for FY 2022 is attached to this
Report as Annexure - B. The said Report does not contain any qualification, reservation or
adverse remark or disclaimer by the Secretarial Auditors.
In compliance with Regulation 24A of the SEBI LODR Regulations, read
with SEBI circular no. CIR/CFD/CMD1/27/2019 dated February 08, 2019, the Secretarial
Auditors have also issued Annual Secretarial Compliance Report for FY 2022. The said
Report does not contain any qualification, reservation or adverse remark or disclaimer by
the Secretarial Auditors.
22. Non-applicability of maintenance of cost records
The Central Government has not prescribed the maintenance of cost
records under Section 148(1) of the Act and the Rules thereunder with respect to the
aviation business.
23. Whistleblower Policy / Vigil Mechanism
Pursuant to Section 177(9) of the Act and Regulation 22 of the SEBI
LODR Regulations, your Company has adopted a Whistleblower Policy / Vigil Mechanism for
Directors, Senior Management and employees of your Company and its subsidiary. The
Whistleblower Policy provides for adequate safeguards against victimisation of
whistleblowers and provides for direct access to the Chairperson of the Audit Committee,
in exceptional circumstances.
The policy provides for a mechanism to report concerns about unethical
behaviour, actual or suspected fraud, instances of leak of Unpublished Price Sensitive
Information ("UPSI") or violations of your Company's Code of Conduct. The
Whistleblower Policy also enables suppliers, contractors, and other stakeholders to report
unethical behaviour, misconduct, violation or legal or improper practices, actual or
suspected fraud by a Company official without any fear of unfair treatment (including loss
of business).
During FY 2022, no person was denied access to the Chairperson of the
Audit Committee. The Audit Committee oversees the implementation of the policy and reviews
the resolution of complaints on a quarterly basis.
Your Company has implemented a class-leading complaint resolution
mechanism, which aims at resolving complaints promptly, transparently, independently and
in accordance with the law. All complaints of suspected violations are taken seriously and
reviewed promptly. Based on the nature and severity of the violation of the Code of
Conduct, the Company policies and/or the law, appropriate action is taken.
The policy is available on the Investor Relations section of the
website of your Company at
https://www.goindigo.in/content/dam/goindigo/investor-relations/policies/2021/IGAL-WhistleBlower-Policy-2.pdf
24. Disclosure under Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013, as amended ("POSH Act")
Your Company has a zero-tolerance policy towards cases of sexual
harassment at workplace reported by any woman against an employee. Your Company has
constituted an Internal Committee which has a female Chairperson who is a member of our
Senior Management team and also has an external female member who is a lawyer.
Your Company has a robust internal mechanism and policy on 'Prevention
of Sexual Harassment at Workplace' to deal with such matters. All employees are sensitized
to the policy right from the day of employment. We also conduct awareness programs for
employees on the policy and have awareness posters with details of how to report a
complaint along with the details of the Internal Committee members, which are displayed
across all our working locations. The Internal Committee ensures that all cases reported
are resolved in a timely manner, in accordance with the Sexual Harassment of Women at
Workplace (Prevention, Prohibition, Redressal), Act 2013. All investigations are handled
in a very objective, sensitive, and fair manner without attaching any prima-facie guilt to
the respondent merely upon receipt of a complaint against the employee. Utmost
confidentiality is maintained while handling these matters.
For details on the cases reported and resolved during FY 2022 and the
mechanism followed by your Company while dealing with such cases, please refer to Business
Responsibility and Sustainability Report forming part of the Annual Report.
25. Internal Financial Control and their adequacy
Your Company has put in place an adequate Internal Financial Control
(IFC) system, to ensure compliance with various policies, practices, and statutes. Your
Company ensures that such IFC systems are commensurate with the size and complexity of our
business and are adequate and operating effectively on an ongoing basis.
The Board has adopted policies and procedures for:
• effectiveness and efficiency of operations
• Adequacy of safeguarding Company's assets
• Prevention and detection of frauds and errors
• Accuracy and completeness of accounting records
• Timely preparation of reliable financial information
The details in respect of your Company's IFC and their adequacy are
included in the Management Discussion and Analysis Report, which forms a part of the
Annual Report.
26. Public Deposits
Your Company has not accepted deposits from the public falling within
the ambit of Section 73 of the Act and the Rules made thereunder.
27. Particulars of Loans, Investments and Guarantees
The particulars of loans, investments and guarantees as on March 31,
2022, covered under Section 186 of the Act read with the Companies (Meetings of Board and
its Powers) Rules, 2014, as amended and Regulation 34(3) read with Schedule V of the SEBI
LODR Regulations, are given in the notes to the standalone financial statements, which
forms a part of the Annual Report.
28. Material changes and commitments affecting the financial position
of your Company, between the end of the financial year and the date of this Report.
Other than as stated elsewhere in this Report, there are no material
changes and commitments affecting the financial position of your Company between the end
of the financial year and the date of this Report.
29. Management Discussion and Analysis Report
The Management Discussion and Analysis Report on your Company's
financial and operational performance, industry trends and other required details prepared
in compliance with Regulation 34 of the SEBI LODR Regulations for FY 2022 forms a part of
the Annual Report.
30. Report on Corporate Governance
In compliance with Regulation 34 read with Schedule V of the SEBI LODR
Regulations, the Report on Corporate Governance of your Company, inter alia, covering
composition, details of meetings of the Board and committees, together with a certificate
from the Secretarial Auditors regarding compliance of conditions of Corporate Governance,
forms a part of the Annual Report.
A certificate from the Whole Time Director and CEO and the Chief
Financial Officer of your Company in terms of Regulation 17 of the SEBI LODR Regulations,
inter-alia, confirming the correctness of the financial statements and cash flow
statements, adequacy of the internal control measures and reporting of matters to the
Audit Committee, also forms a part of the Annual Report.
31. Business Responsibility and Sustainability Report
In compliance with Regulation 34 of the SEBI LODR Regulations read with
SEBI Circular no. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated May 10, 2021, the Business
Responsibility and Sustainability Report of your Company for FY 2022 describing the
various initiatives undertaken from an environment, social and governance perspective
during FY 2022 forms part of the Annual Report.
32. Annual Return
In compliance with Section 92(3) and Section 134(3)(a) of the Act and
Rules made thereunder, a copy of your Company's Annual Return as on March 31,2022, is
available on the Investor Relations Section of the website of your Company at
https://www.goindigo.
in/content/dam/goindigo/investor-relations/other-related-documents/2021-22/Annual-Return-MGT-7-FY-2021-22.pdf.
33. Significant material orders passed by the Regulators, Courts and
Tribunals
There are no significant material orders passed by the regulators,
courts or tribunals impacting the going concern status of your Company and its operations
in future.
34. Awards and Recognitions
During FY 2022, your Company received multiple awards and recognition.
Details in respect of such awards and recognition received by your Company are included in
the Management Discussion and Analysis Report, which forms a part of the Annual Report.
35. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Act, the Board, based on
representations received from the Management and to the best of its knowledge, ability,
and due inquiry, confirms that:
i. In the preparation of the annual accounts, applicable accounting
standards have been followed and proper explanation for any material departures has been
provided.
ii. Applicable accounting policies have been selected and applied
consistently in order to form views/make judgments and estimates that are reasonable and
prudent. This is intended to facilitate a true and fair view of the state of affairs of
your Company at the end of the financial year including profit/loss of your Company for
that period.
iii. Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act is taken for safeguarding
the assets of your Company and for preventing and detecting fraud and other
irregularities.
iv. Annual accounts have been prepared on a going concern basis.
v. IFCs to be followed by your Company have been laid down and such
IFCs are adequate and operating effectively.
vi. Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and such systems are adequate and operating effectively.
36. Particulars of employees
The statement containing disclosure of remuneration under Section
197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, as amended is given in Annexure - C forming a part of
this Report. The information as per Rule 5(2) and Rule 5(3) of the abovementioned Rules
pertaining to the names of top ten employees and other particulars of employees is
provided in a separate annexure. However, as per the provisions of Section 136(1) of the
Act and the Rules thereunder, the Annual Report and the financial statements, excluding
the aforesaid annexure, are being sent to the Members, and other persons entitled thereto.
Any Member interested in obtaining this, may write to the Company Secretary at the
Registered Office of your Company in this regard.
None of the employees listed in the Annexure are related to any
Director of your Company.
37. Transfer of unpaid / unclaimed dividend to Investor Education and
Protection Fund
The provisions to transfer unpaid / unclaimed dividend to the Investor
Education and Protection Fund (Fund) under Section 124(5) of the Act do not apply to your
Company for FY 2022 since there is no unpaid / unclaimed dividend which is due for
transfer to the said Fund during the current financial year.
38. Reporting of Fraud
The Auditors of your Company have not reported any instances of fraud
committed in your Company by its officers or employees as specified under Section 143(12)
of the Act.
39. Conservation of Energy and Technology Absorption
Your Company persistently strives to run its operations more
efficiently to reduce its fuel consumption and resultant fuel emissions. This endeavour
entails your Company's continuous commitment towards conservation of energy and motivates
it to embrace newer technological advances.
Your Company has incorporated policies, including flight and ground
procedures, for conservation of fuel and has trained flight crew and aircraft maintenance
engineers to ensure that fuel is conserved to the extent possible.
Your Company ensures that there is adequate fuel for its aircraft,
after evaluating various traffic trends in the air and also on the ground, thus avoiding
any additional/ unnecessary fuel upliftment. Your Company has installed a software for
accurate flight planning. This software provides accurate maps and the most efficient
flight path, restricting use of auxiliary power units, employing continuous descent
approaches and economy cruise speeds. It also minimises aircraft weight by providing
recommendations for removing unnecessary equipment and optimising engine settings for
take-off and climb. Further, your Company has adopted innovative statistical data driven
solutions for descent fuel optimisation.
We are also working with Airbus on big data analytics using Airbus
platforms like SKYWISE.
Your Company continues to use technology to enhance processes to ensure
safe and comfortable travel by air which helped gain customer confidence in IndiGo.
Innovation such as solar Baggage Freight Loader (BLF) and COMBO unit which can replace APU
usage during turnaround (combined GPU and ACU unit), helped in saving ATF, reducing carbon
emissions. Your Company is engaged with stakeholders to collaborate on multiple air space
optimisation initiatives like shortening of routes, promulgation of required navigation
performance (RNP) approaches optimising flight routes through conditional route (CDR). We
are the first operator to adopt LPV (localiser performance with vertical guidance)
approaches on ATR Fleet. This shall enable our ATR aircrafts to land aircraft under
marginal weather conditions utilising indigenous satellite-based augmentation system
GAGAN. The Government of India has promoted flexible use of airspace and your Company has
been using this opportunity to utilise every bit of optimum airspace to reduce fuel
consumption and simultaneously reducing carbon emissions. Since August 2020, your Company
has been able to reduce carbon emissions by 29,000 tonnes by utilising direct routes.
Further Operational endeavors have helped us save Carbon emissions to
the tune of 30,354 tonnes through reduction of onboard weight, single engine taxi,
optimised landing, and focused fuel uplift.
Your Company has sought to reduce the weight of its aircraft by
selecting lighter seats and by choosing not to have in- flight entertainment systems. Your
Company has further reduced the aircraft weight by equipping the entire fleet with
Electronic Flight Bags (EFB) and removing paper manuals weighing 25kg from each Airbus
aircraft. As an example, this small initiative alone will save us fuel consumption to the
tune of 341 tonnes each year and 10,76 tonnes of carbon emissions approximately.
Your Company has also adopted fuel policies designed to reduce costs on
the ground, including the use of the Eco-Power Engine Wash process for aircraft engines,
the use of ground equipment in place of aircraft auxiliary power units (which consume more
fuel), use of single engine for taxiing on ground and introduction of other
engineering/operating protocols.
These policies are all designed to optimise fuel consumption and reduce
our carbon footprint and thereby finally reducing costs.
Your Company continues to explore the feasibility of using ground
vehicles on cleaner alternative fuels like CNG/ electricity to reduce carbon emissions at
airports.
Keeping with the commitment of replacing all A320 CEO aircraft
expeditiously, your Company has re-delivered (retired from service) 55 A320 CEO aircraft
during FY 2022 amounting to an aggregate of 97 aircrafts which have been re-delivered till
FY 2022 from a fleet of 123 A320 CEOs. Your Company has also inducted 23 A320 NEO aircraft
which are 15% more fuel efficient. During FY 2022, 143 A320 NEO aircraft have operated
approximately 236,944 flights. During FY 2022, your Company has operated 35 ATR 72-600
turboprop aircraft on regional routes. These are more fuel efficient compared to jet
aircraft.
Your Company is continuously working with government authorities in
relation to the Carbon Offsetting and Reduction Scheme for International Aviation
(CORSIA). In FY 2022, a successful external audit on fuel consumption on international
operations was undertaken and was also reported to the DGCA.
40. Compliance with Secretarial Standards on Board and General Meetings
Pursuant to the provisions of Section 118 of the Act, your Company has
complied with all the applicable provisions of the Secretarial Standard - 1 and
Secretarial Standard - 2.
41. Foreign exchange earnings and outgo
The details of foreign exchange earnings and outgo for FY 2022, on an
accrual basis, are set out below:
| Particulars |
Amount |
|
(Rs. in million) |
| Foreign exchange earnings |
27,620.41 |
| Foreign exchange outgo* |
140,806.76 |
*Foreign exchange outgo excludes foreign exchange gain/loss on
reinstatement of assets and liabilities
42. Acknowledgement
The Board is grateful for the continuous patronage of our valued
customers and remains committed to ensuring that your Company provides an on-time,
courteous and hassle-free experience. The Board acknowledges and appreciates the hard work
and dedication of the employees of your Company who have stood strong and worked together
as a team during FY 2022.
Your Company also takes this opportunity to express its appreciation
for the support and co-operation extended by the Central and State governments, regulatory
authorities, investors, bankers and other stakeholders.
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