Reaching higher Altitudes Giorgio De Roni, CEO, loves to spend his weekends at the office, but doesn't shy away from taking a few weeks off in the mountains every once in a while

Reaching higher Altitudes

Giorgio De Roni, CEO, loves to spend his weekends at the office, but doesn't shy away from taking a few weeks off in the mountains every once in a while

It is bright and early in the morning when we walk into Go Air's Mumbai offices to catch up with the CEO, who took over the reins of the low-cost carrier in mid-2011. Even though the Indian aviation industry has been experiencing turbulence, De Roni believes that there are also many positive aspects to bank on. "India is a dynamic market with a growth rate that is the highest in the world, which is extremely positive. Purchasing power of the middle-class is growing and although the overall economy may have slowed down, the Indian economy is growing faster than the rest of the world," he says. That said, De Roni, who has been in the aviation industry for close to three decades, is also aware of the problems that the Indian market brings with it. With an archaic legal framework, that needs revision and a heavy burden of taxes, running an airline in India is costlier than the rest of the world. "To cite an example, the cost of fuel per hour is $4000 in India while the same aircraft's cost per hour in other parts of the world — high oil prices notwithstanding — is $3000. If we could have the ATF (jet fuel) price similar to global markets, we can offer competitive fares to our customers and increase the opportunity for the market. I believe that aviation and airlines, both can significantly contribute to the development of the economy because it brings tourists, foreign currency and additional employment," he says. De Roni feels that the past year's massive hike in airport fees — more than 300% within a year — was something the aviation industry had never experienced. Airlines have had to shoulder the sudden increase in royalty by airports (as much as 30% within a span of one day) because it can't be transferred to the customer. "These fluctuations create a difficult situation for the airlines," he explains. However, De Roni believes in keeping a clear demarcation of responsibilities. "Airlines should focus on their industrial business plan, while the policy revision should be left to the government. However, I do hope that there will be some revision to fix the weaknesses in the system," he further adds. The CEO goes back to the beginning where he started as a check-in agent at an Italian airport in 1983. "Over the last three decades, I have expanded my experience across various areas of the industry like sales, aircraft leasing, fleet strategy etc." De Roni lives at a walking distance from his office, "I spend all the time saved in the office!" he confesses, with a radiant smile. "As the chief executive, during the work week I have to interact with my staff, clients, and investors. Weekends bring me an opportunity to think about strategy and future of the company. And I enjoy my work immensely." Globally, the airline industry has seen a lot of changes over the last few decades, and De Roni feels that these have been beneficial especially for the Indian market. "When I joined the airline business in 1983, it was very different. Today, it has become a tougher industry. Over the decades, the change in regulations has brought a lot of benefits to the customer, but at the same time, it has become a challenging environment for the employees," he says. "This is nothing out of the ordinary, because it also happens in other sectors and industries. So, we must be ready and open to change. In India, we have a young generation willing to work hard and I appreciate the support I get from my staff," he smiles. Even though he spends most weekends working, De Roni does take the time out to travel across India and is slightly partial to the mountains up north. "I was born in Italy near the border with Austria and I belong to a mountainous region of Italy. Trekking in the mountains of India is one of the things I enjoy a lot. My family lives in Milan, but they visit often, so I take time off to travel with them. I don't come to office during those weekends," he laughs. During his last trip to Jammu and Kashmir, De Roni was mesmerised by the beauty of the region. He feels that there is a need for stronger awareness internationally about India as a destination and about India's airlines. "The potential for tourism in India is tremendous and hasn't been exploited fully. If I am not mistaken, Sri Lanka has a higher tourism inflow as compared to India, which is baffling because we have so much more to offer," he says. Speaking about the airline's future plans, De Roni says, "The present regulations do not allow Go Air to fly internationally, because there is a minimum requirement of 20 aircraft and we currently operate only 13. So, we have written to the ministry of civil aviation for the waiver of this constraint. We have also placed an order for additional 80 aircraft." De Roni thinks that if this waiver comes through, it will prove to be a huge opportunity for the industry. International airlines with four to five aircraft are allowed to fly to India but Indian airlines are not allowed to fly outside of the country, due to the fleet requirement. But even though Go Air will tap international opportunities, the focus of the airline will remain domestic. "Our focus in the coming years will be strengthening our network within India," he asserts. With a getaway planned in the mountains next week with his wife, De Roni is looking forward to explore Jammu and Kashmir for the third time. "There are so many places to visit in India. I don't have the time to visit all of them but sometime in the future…" he says with a smile, as he bids us goodbye and rushes into another meeting.