IndiGo soars as Indian rivals struggle: FT.com

Posted: May 6, 2012 in Airlines, Aviation & Airports (General News), India
Tags: , , , , , , , ,

[FT.com] Aditya Ghosh, the youthful president of IndiGo, says there is no big secret behind the success of India’s only profitable airline in an infamously difficult aviation market.

IndiGo President Aditya Ghosh says “We don’t try to do anything fancy, we don’t try to bend the wind, we just stick to our business model”

IndiGo President Aditya Ghosh says “We don’t try to do anything fancy, we don’t try to bend the wind, we just stick to our business model”. Photo: Wikipedia

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.”

The president of the five-year-old carrier, owned by Rahul Bhatia, an Indian billionaire, and Rakesh Gangwal, the US Airways former chief executive, says…..

Read the full story at FT.com


By James Fontanella-Khan
New Delhi – 6th May 2012


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