Aditya Ghosh

President, IndiGo Airlines


June 29, 2015

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June 2015

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Conquering the Sky Strategically

Aditya Ghosh,President, IndiGo Airlines

Aditya Ghosh,President, IndiGo Airlines

IndiGo airlines that entered the aviation market in 2006, formed a niche through its low cost strategy and now gives tough competition to heavyweights such as Air India and Jet Airways. Unperturbed by new forays like AirAsia, Aditya Ghosh, shares IndiGo’s strategy amidst intense competition.
IndiGo has managed to scale the top, despite being the youngest airline in India. How has the airline managed to do so in such a crucial domestic aviation market?
The strategy is simple – our focus is on three simple things – flying on time; keeping the experience from booking a ticket to collecting bags, courteous and hassle free; and finally sticking to our religion of offering low fares. Market share is something we don’t chase. The airline’s strong load factor is nothing but a reflection of satisfied and delighted customers who come back and fly with us and encourage others to try IndiGo. We are constantly trying to be that reliable and consistent airline that customers have come to love. We may not get it right 100 per cent, but every day, all of us are putting in our best efforts to get there.

How are you keeping up with the momentum in the low cost market where new airlines such as AirAsia arise more competition?

Our competition is with who we were yesterday. Our endeavor is to provide the best-in-class experience to all our customers at the most efficient cost structure. Therefore, we will stay focussed on keeping our costs low and deliver a high quality product.

How do you see AirAsia, Jet-Etihad and other airlines coming in, impacting your business and the current competitors?

As a policy, we do not comment on our competitors, their policies and impact on our business. We welcome competition in the market and believe that it will help grow the market and improve the overall offering to the customer.

How are the regional operations doing? How much does it contribute to your revenue? Do you plan on adding frequency and new routes besides metro?

IndiGo has a single type of aircraft – the Airbus 320, with a single class configuration comprising of 180 seats. With 33 domestic destinations and five international destinations, we are regularly adding new routes and frequencies, including non-metro routes. We run a profitable business and attract customers from all areas of our network with a strong and ever growing demand for IndiGo.

In the next quarter, do you expect to see more fare cuts in the section and will IndiGo be a part of this?

One of the key customer promises of IndiGo is to offer ‘always affordable’ fares to customers. Hence, we will continue to be amongst the lowest fare options for our customers consistently.


Indigo aims at providing seamless travel to its customers at affordable fares

Indigo aims at providing seamless travel to its customers at affordable fares

With relaxed rules many Indian airlines are talking to foreign carriers for collaboration, does IndiGo also plan on joining hands with an international low-cost carrier?

We don’t have any plans as of now.

With the ongoing consulations on the airport charges, are you concerned about a further increase? What according to you is the ideal airport charge that should be levied?

Airport charges are an integral part of any airline fare. Even though it is paid by the consumer, it burdens the price of the ticket paid by the passenger. These charges are charged in terms of UDF (User Development Fees), ADF (Airport Development Fees) and PSF (Passenger Service Fees). In addition, service tax is levied on these charges. UDF is levied for Brownfield airports and ADF for Greenfield airports.

Any increase in airport charges will impact the cost of the ticket and burden the passenger as well as his/ her affordability to buy the ticket.

IndiGo had an order book of 280 Airbus A320s. How many of these have been delivered and what is the delivery schedule over the next two years?

To meet the growing travel demand, IndiGo’s fleet expansion remains intact. In November 2014, we completed the deliveries of the first 100 aircraft, the order for which was placed in 2005. Thereafter, more airplanes shall be inducted into our fleet between 2016 and 2025 as part of our existing airplane orders. Ordering more A320s was a natural choice to meet India’s growing flying needs.

What are the plans of IndiGo in terms of expansion? And what is your outlook for airfares, demand and revival of the market?

IndiGo’s growth plans have been consistent since its order of first 100 aircraft and its subsequent launch in 2006. Our growth is aimed at providing seamless travel to our customers at affordable fares. In the process of our expansion, we will continue to develop connectivity both in terms of breadth and depth of service across the country.

Besides focussing on the airline’s three core principles – on time performance, providing consistently low fares, and a courteous and hasslefree travel experience, the airline will continue to tap the huge passenger traffic the Indian market has to offer in the years to come. To meet the growing travel demand, IndiGo’s fleet expansion remains intact.

India is one of the least penetrated aircraft markets in the world with only one commercial plane for every three million Indians. Even countries like Indonesia and Philippines have three or four times the aircraft density of India. This leads to a mismatch of supply and demand leading to high fares which are often beyond the reach of the common man.

As air travel becomes more prevalent in India, IndiGo will continue to expand its network to meet the requirements of both business and leisure travellers – both in India and abroad.

Finally, the Paris Air Show is here again. What exactly would the airline be looking for at this show?

The World Airline Awards, organised during the Paris Air Show, is one of the most prestigious accolades in the world airline industry and a global benchmark of airline excellence. This is the sixth year in a row that we have been invited at the Awards.



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