TruJet likely to break even this year, aims for Rs 600 crore revenue by FY22

The airline has a fleet of five aircraft that criss-cross 20 cities, most of which are registering operating profits.

Published: 13th July 2019 08:43 AM  |   Last Updated: 13th July 2019 08:43 AM   |  A+A-

TruJet CFO KG Viswanath (R) speaks to media in Hyderabad on Friday

TruJet CFO KG Viswanath (R) speaks to media in Hyderabad on Friday| RVK Rao

By Express News Service

HYDERABAD: Hyderabad-based Turbo Megha Airways, which owns and operates TruJet, has set the ball rolling for next three years. The four-year-old regional carrier, which is likely to break even this fiscal, hopes to achieve Rs 500-600 crore revenue by FY22 and go public after. In FY18, it turned in a net loss of Rs 84 crore on a revenue of  Rs 165 crore, which the company attributed to being-in-the-growth phase. 

It has a fleet of five aircraft that criss-cross 20 cities, most of which are registering operating profits, according to officials. The airline makes approximately 22 paise on every seat sold, given that its cost and revenue per Available Seat Kilometer (ASK) are currently at Rs 8 and Rs 8.22 respectively, they added. 

TruJet will soon add 13 aircraft — five of which will come in six months — by FY21 and fly to six new destinations including the commercial and leisure cities of the North-East, besides adding frequency on four existing routes. By FY22, it will add more routes to spread its presence across 40 cities or so. It will also try and mint money from non-ticket and ancillary services such as advertisements on boarding passes, and offering ground and security handling for other airlines. Currently, such non-core revenue is insignificant at 2-3 per cent but is expected to reach a respectable 20 per cent by FY22. 

These revenue-raising measures should help TruJet grow its topline by 50-50-80 per cent in FY20, FY21 and FY22 respectively, according to the Rs 600 crore of topline,” he reasoned. If all goes as per the plan, the company will consider issuing an Initial Public Offer. 

“In the coming three years, once we get settled and once we are consolidated, then we will go for an IPO. Once we reach a reasonable size, definitely we will consider IPO. For any airline, the exit path is that,” said K V Pradeep, director, Turbo Megha Airways, as a matter of fact. 

Turbo Megha Airways counts infrastructure firm Megha Engineering & Infrastructure Ltd as its majority shareholder with 90 per cent stake, while actor Ram Charan and others own the rest. The carrier will likely add 300 employees, taking the total headcount to 1,000 by March.

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