When asked how the no-frills carrier manages to make money while its rivals bleed red ink thanks to extortionate taxes, high fuel prices and fierce price competition, Mr Ghosh simply says:
“We don’t try to do anything fancy, we don’t try to bend the wind, we just stick to our business model,” the 36-year-old executive says from his cramped office at company headquarters in the New Delhi suburb of Gurgaon. “We fly our planes on time; the flying experience is neat; and our fares are consistently lower than our competitors.”
Analysts tend to agree with his assessment. They say that in contrast to Kingfisher Airlines, the debt-laden carrier struggling to avoid bankruptcy, privately held IndiGo has followed the strategy of Southwest Airlines in the US and Europe’s Ryanair: offer only low-cost fares connecting busy destinations using just one type of plane.
“In terms of operations IndiGo is by far the best airline in India,” says Sharan Lillaney, aviation analyst at Angel Broking. “It’s definitely on track to become the Indian Southwest but it will have to prove itself over time.”
By James Fontanella-Khan
New Delhi – 6th May 2012
- How to stand out as an Indian Airline: Be profitable (ndtv.com)
- Lessons to be Learned from IndiGo Airlines (india.blogs.nytimes.com)