IndiGo Makes History – India’s Leading Airline Crosses ₹1 Lakh Crore Market Value
Rahul Bhatia and Rakesh Gangwal were both successful businessmen in their own right. Bhatia was the chairman of InterGlobe Enterprises, a diversified conglomerate, and Gangwal was a former executive at United Airlines. They met in 2002, and they quickly realized that they shared a common vision: to create a low-cost airline that would revolutionize air travel in India.
The Indian aviation market was ripe for disruption. The two largest airlines in India, Air India and Jet Airways, were both struggling. Air India was government-owned and inefficient, and Jet Airways was facing financial problems. Bhatia and Gangwal believed that there was a market for a low-cost airline that offered good service and low fares.
They founded IndiGo in 2006, and they quickly began to make their mark on the Indian aviation market. The airline’s first flight took off on August 4, 2006, from New Delhi to Imphal. IndiGo quickly became the fastest-growing airline in India, and it soon became the largest airline in the country.
IndiGo’s success can be attributed to a number of factors. The airline has a young fleet of aircraft, which means that it has lower operating costs. It also uses a hub-and-spoke system, which minimizes the amount of time planes spend on the ground. And, of course, IndiGo’s low fares have made it an attractive option for budget-minded travelers.
In addition to its low fares, IndiGo is also known for its good service. The airline has a dedicated team of customer service representatives who are always willing to help. And, unlike some other low-cost airlines, IndiGo does not charge for seat assignments or checked bags.
IndiGo’s success has not gone unnoticed. The airline has won numerous awards, including the Skytrax World’s Best Low-Cost Airline award for the past 10 years. And, in 2023, IndiGo became the first Indian airline to touch ₹1 lakh crore in market capitalization.
The story of IndiGo is a story of innovation and success. The airline has shown that it is possible to offer low fares and good service, and it has changed the way people travel in India. IndiGo is now a major player in the global aviation industry, and it is poised for continued growth in the years to come.thumb_upthumb_downuploadGoogle itmore_vert
IndiGo Airline Crosses ₹1 Lakh Crore Market Value
InterGlobe Aviation Ltd, the operator of Indigo, India’s budget carrier, achieved a market capitalization (Mcap) of over ₹1 trillion on June 28. Indigo’s stock reached a 52-week high of ₹2,634.25 on the BSE, reflecting a market value of ₹1.01 trillion. The airline’s market share increased by 60% in May, reaching 61.3% after consecutive monthly gains. In May, Indigo flew 81.10 lakh passengers.
Indigo recently placed a historic order for 500 Airbus A320 Family aircraft, valued at $50 billion at list prices, to be delivered between 2030 and 2035. The actual cost is expected to be significantly lower due to substantial discounts. The order includes A320 neo, A321 neo, and A321 xlr aircraft. With this order, Indigo has now ordered a total of 1,330 aircraft from Airbus since its establishment in 2006.
Indigo’s emphasis on fuel-efficient A320NEO Family aircraft allows it to prioritize reducing operating costs, improving fuel efficiency, and maintaining reliability. Currently, the airline operates over 300 aircraft and has pending orders for 480 more, expected to be delivered by 2030. With the recent order, Indigo’s order book extends to almost 1,000 aircraft.
UBS, a global brokerage firm, raised Indigo’s target price and maintained a ‘buy’ rating on the stock due to an improved Q1FY24 outlook. Factors contributing to the positive outlook include strong underlying demand, increased passenger load factors (PLF), higher yields, lower fuel costs, and efficient operations. UBS forecasts significant growth in earnings per share (EPS) for Indigo in Q1FY24 compared to previous years.
Indigo’s financial performance in the January-March quarter of fiscal year 2022-23 was impressive, with record profits and a substantial increase in total income. The airline reported a high yield per passenger flown per kilometer, indicating strong revenue generation.
Indigo’s achievement of crossing ₹1 trillion in market capitalization, its large aircraft order, and positive outlook from analysts reflect its position as a leading player in India’s aviation industry.
A low-cost business model:
IndiGo’s low-cost business model has allowed it to offer affordable air travel to a large number of people in India.
A strong brand:
IndiGo has built a strong brand in India, and it is known for its reliable and efficient service.
IndiGo has efficient operations, which have helped it to keep costs down.
Growth of the Indian aviation market:
The Indian aviation market is one of the fastest-growing aviation markets in the world, and this has helped IndiGo to grow its business.
IndiGo’s – FAQs
1 – Who founded IndiGo?
Rahul Bhati and Rakesh Gangwal
2 – Is Air India or IndiGo better?
Compare company reviews, salaries and ratings to find out if Air India or Indigo Airlines is right for you. Air India is most highly rated for Work-life balance and Indigo Airlines is most highly rated for Culture.
3 – What is IndiGo Airlines famous for?
IndiGo is India’s largest and most preferred passenger airline and amongst the fastest growing airlines in the world.
4 – Who is CEO of IndiGo?
IndiGo’s CEO Pieter Elbers noted that the V-shaped recovery of the country’s aviation sector has been a part of learning.
5 – Is IndiGo a 5 star airline?
Product Rating 4/5