The October IPO of InterGlobe Aviation, the holding outfit of IndiGo, India’s largest and most profitable airline, created three new candidates for the Forbes billionaires list: father and son pair Kapil and Rahul Bhatia and airline veteran Rakesh Gangwal, the former boss of United Airways. The listing capped an eventful decade for the cofounders during which IndiGo, a total unknown at the time of its 2006 launch with a single plane, quietly ascended to dominate Indian skies. (Today is has a market share of more than a third)
IndiGo arrived on what was already a hyper-competitive scene with players such as Jet Airways founded by airline entrepreneur Naresh Goyal and Kingfisher Airlines, started by flamboyant liquor tycoon Vijay Mallya. IndiGo played its cards smartly. Rather than jump in the moment it had secured a license in 2004 by leasing old planes, it waited to buy new aircraft. At the Paris Air Show in 2005, it made a splash with an order for 100 Airbus A 320 planes. Subsequently, it has placed multi-billion dollar orders for 330 more aircraft.
While its rivals were full service airlines, IndiGo’s was a single-class offering minus perks such as hot meals or even a frequent flyer program. The budget carrier didn’t pamper its passengers with freebies but it offered brand new, squeaky clean planes that invariably reached their destinations on time. This reputation for punctuality saw IndiGo snatching market share as more busy executives chose its no-frills service.
01/03/16 Naazneen Karmali/Forbes.com
To Read the News in full at Source, Click the Headline
IndiGo arrived on what was already a hyper-competitive scene with players such as Jet Airways founded by airline entrepreneur Naresh Goyal and Kingfisher Airlines, started by flamboyant liquor tycoon Vijay Mallya. IndiGo played its cards smartly. Rather than jump in the moment it had secured a license in 2004 by leasing old planes, it waited to buy new aircraft. At the Paris Air Show in 2005, it made a splash with an order for 100 Airbus A 320 planes. Subsequently, it has placed multi-billion dollar orders for 330 more aircraft.
While its rivals were full service airlines, IndiGo’s was a single-class offering minus perks such as hot meals or even a frequent flyer program. The budget carrier didn’t pamper its passengers with freebies but it offered brand new, squeaky clean planes that invariably reached their destinations on time. This reputation for punctuality saw IndiGo snatching market share as more busy executives chose its no-frills service.
01/03/16 Naazneen Karmali/Forbes.com
