'Low non-fuel costs kept IndiGo afloat'

Mumbai: IndiGo managed to buck the trend and post Rs 650-crore profit last financial year because it kept its non-fuel costs low, said the airline’s president, Aditya Ghosh.
The largest low-cost airline posted an 18 per cent growth in net profits, even as all other airlines, except SpiceJet, bled in 2011. Ghosh attributes this success to various factors, including cost control measures, strict maintenance, lower distribution costs and almost no interest costs. “We are sufficiently capitalised and not looking to raise debt or equity at the moment,” he said.
The fleet of IndiGo, launched by entrepreneur Rahul Bhatia and former US Airways CEO Rakesh Gangwal, has 44 planes. It will add 16 more Airbus A320s by next December. “It is a simple function of keeping costs low. At the end of 2010-11, we had 38 planes and 3,750 employees, that is, 99 employees per aircraft,” he said.
At a time when rising crude oil prices are hurt airlines’ bottom lines across the world, the Gurgaon-based airline is trying to lower its costs. “Our focus is to lower operating fuel costs and we have a dedicated team working on it,” he added.
05/10/11 Business Standard

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Categories: Indigo Airlines Oct 2011