Referring to the foreign investments Indian aviation players seem to be wooing these days, Aditya Ghosh president and wholetime director, IndiGo says his company never needed the crutches of foreign direct investment (FDI) to help run the company. Speaking to CNBC-TV18's Shereen Bhan, Ghosh says with its efficient cost structure and steely focus on its own brand, the company has been able to create a story that is tough to replicate.In a freewheeling interview, Ghosh discusses the controversial 5/20 rule, the government's capping of fares and its plans to focus on its mobile applications and website.
Q: Let me start by asking you about a conversation that I had with your competitor Ajay Singh and he said that there is no reason why Indigo should be valued at over Rs 25,000 crore, whilst SpiceJet should be valued at about Rs 2,000 crore and the whole sector is going to be rerated. That comment and the possibility of the Indigo IPO and the valuation that you guys hope that you will be able to extract has got all the airline stocks excited. Do you believe that the sector is poised for a rerating. A: We have always been very bullish about India, the aviation sector in India and that is not in the last one or two months because we don't play this game for the last one or two months. We ordered the first 100 airplanes 10 years ago. So, even 10 years ago we believed in the India story and the fact that Indian aviation will grow at a tremendous pace. The only thing probably I have a different point of view is that not every browser is Google, not every airline is Indigo.
22/10/15 CNBC-TV18/Moneycontrol.com
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Q: Let me start by asking you about a conversation that I had with your competitor Ajay Singh and he said that there is no reason why Indigo should be valued at over Rs 25,000 crore, whilst SpiceJet should be valued at about Rs 2,000 crore and the whole sector is going to be rerated. That comment and the possibility of the Indigo IPO and the valuation that you guys hope that you will be able to extract has got all the airline stocks excited. Do you believe that the sector is poised for a rerating. A: We have always been very bullish about India, the aviation sector in India and that is not in the last one or two months because we don't play this game for the last one or two months. We ordered the first 100 airplanes 10 years ago. So, even 10 years ago we believed in the India story and the fact that Indian aviation will grow at a tremendous pace. The only thing probably I have a different point of view is that not every browser is Google, not every airline is Indigo.
22/10/15 CNBC-TV18/Moneycontrol.com
