New Delhi: InterGlobe IPO has been a big success, having managed to garner Rs 3,010 crore and in the process proved legendary investor Warren Buffett wrong, at least about business views on investing in airlines.
To be fair to Warren Buffett, airlines across the world haven’t exactly covered themselves in glory. In India’s case, airlines here have lost a combined $10 billion in the past six years as fierce competition forced them to sell tickets below cost and provincial taxes on jet fuel drove up their expenses.
Founded by former US Airways chief executive officer Rakesh Gangwal and former travel agent Rahul Bhatia, InterGlobes’ IndiGo is, at the moment, giving the lie to legendary investor Warren Buffett, who famously swore off airline stocks after his $358 million “mistake” with US Airways Group before Gangwal’s time.
“I guess our founders disregarded that advice 10 years ago, and have gone from millionaires to billionaires today,” IndiGo president Aditya Ghosh said Tuesday about Buffett’s view on airlines. “The opportunities that India provides are vast. If you can create the right product, there will be demand.”
11/11/15 Financial Express
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To be fair to Warren Buffett, airlines across the world haven’t exactly covered themselves in glory. In India’s case, airlines here have lost a combined $10 billion in the past six years as fierce competition forced them to sell tickets below cost and provincial taxes on jet fuel drove up their expenses.
Founded by former US Airways chief executive officer Rakesh Gangwal and former travel agent Rahul Bhatia, InterGlobes’ IndiGo is, at the moment, giving the lie to legendary investor Warren Buffett, who famously swore off airline stocks after his $358 million “mistake” with US Airways Group before Gangwal’s time.
“I guess our founders disregarded that advice 10 years ago, and have gone from millionaires to billionaires today,” IndiGo president Aditya Ghosh said Tuesday about Buffett’s view on airlines. “The opportunities that India provides are vast. If you can create the right product, there will be demand.”
11/11/15 Financial Express
