IndiGo's success is about future planning, says Ghosh

Aditya Ghosh, the president of IndiGo Airlines scales new dizzying heights every year and empowers Indians to do literally the same. Ghosh is a lawyer turned president of India’s most profitable low fare airline. He claims it a result of being at the right place at the right time.
"While starting up IndiGo, the main focus for IndiGo was to know their one big objective," Ghosh told CNBC-TV18. IndiGo was the last airline to start, and by the time it started, all the pilots, engineers and parking base were gone. Indigo had ordered 100 planes and it didn’t know where to park them.
The perception for a low fare airline has often been that low cost equates to low quality. When people came off a low fare carrier, they would discretely take their bag tags off because they didn’t want to say which airline they flew, pointed out Ghosh. "Our one big objective was that we didn’t want low cost to be low quality," he added.
Initially when IndiGo started, it began losing focus because everybody around was throwing valets, carpets and free meals and chocolate mousses, said Ghosh. We thought of a typical travel plan. We thought of three simple things like on time hassle free low fares and that business model worked for Indigo.
"Our problem was not enough to be competitive or better than the next loser. So, we ordered 100 planes in 2005," he told CNBC-TV18. When IndiGo ordered 100 planes, the media didn’t take it seriously.
India was then one of the most underpenetrated aircraft markets in the world, so IndiGo spread it over a period of ten years. On October 10, IndiGo would get a delivery of its 50th plane. The 100th aircraft would arrive in 2015. In 2015, when IndiGo has eaten up its first 100 planes, what would be the next step? So, the airline ordered another 180 planes and had to time it accordingly.
27/09/11 CNBC-TV18/Moneycontrol.com

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Categories: Indigo Airlines Sep 2011