Bangalore: IndiGo, the latest low-fare domestic airline, has worked out a roadmap for the airline's growth, with 40 aircraft (presently four Airbus A320s) and 30 destinations by 2010 to ensure profitability.

Announcing this here on Tuesday, IndiGo president and chief executive officer Bruce Ashby said to begin with, the company would be enhancing its route network in south India.

By the end of the year, it would have six airplanes, 15 by December 2007 and 23 by 2008. The plan, he said, was simple: to keep to one kind of aircraft (Airbus A320) and ensure affordable fares and on-time performance.

Mr. Ashby said that by not going in for different types of aircraft the company would be bringing down costs considerably.

"The spare parts inventory will be simple and there will be no need to have multiple teams to track schedules and maintenance. Our teams will be working in just one area, and that is flying A320s to schedules."

Since IndiGo took off, it has had an 85 per cent passenger load factor with an average fare of Rs. 3,000 per seat. The airline hopes to make profits in 18 to 24 months.

With fares starting from Rs. 499 on the Hyderabad-Chennai sector, Mr. Ashby ruled out dropping them any further. "We will not be resorting to any gimmicks to woo passengers, but will focus on providing on-time performance and service," he said.

As for code sharing with other airlines, particularly international, Mr. Ashby said it did not make business sense to have an arrangement. "It is expensive, and we are in the low-cost business."

HDFC Bank in tie-up

HDFC Bank Ltd. has forged a partnership with the Department of Posts (Karnataka Circle) to offer loans against personal securities such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP), mutual fund units, shares, LIC policies and bonds.

Under the arrangement, loans in the form of an overdraft facility will be offered in select post offices in the Karnataka Circle, initially in Bangalore, Mysore, Belgaum, Udupi, Hubli and Dharwad and, eventually, across the State.

Customers can avail themselves of loans up to 90 per cent of the value of security, subject to a minimum of Rs. 50,000.

There will not be any monthly instalment, no post-dated cheques and no pre-payment penalty/charges. The loans will carry a low rate of interest, which will be levied only on the amount utilised by the customer and the same has to be serviced monthly.

Under the `loan against securities' scheme, customers will be given a chequebook, free ATM-cum-international debit card, free phone banking and Net banking with funds transfer facility.

The tie-up with the Postal Department will enable HDFC Bank to reach the interiors of the State Biju Pillai, vice-president and business head, HDFC Bank, told presspersons here on Tuesday.

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