IndiGo welcomes the competition from AirAsia's proposed Indian joint venture, with the low-cost carrier's chief executive saying that there is enough demand for a new player.
"Competition, any competition, is never bad. At IndiGo, we welcome competition as it will force us to focus on being more efficient and ensure that we continue to focus on delivering the best service to our customers," says Aditya Ghosh on the sidelines of Routes Asia 2013.
He adds that with the Indian market continuing to grow, there is room for more airlines. Profitability, however, will continue to be key and the airlines will need to keep a close watch on their costs, he says.
"The pie is expanding and there is more and more demand for air services. This is a homogenous low-fare market and the players have to ensure that they keep their costs low in order to make money. That is what we are doing."
Privately-held IndiGo does not publicly reveal what its cost per average seat kilometre is, but Ghosh says that it is slightly lower than that of publicly-listed rival SpiceJet.