Indigo is experiencing turbulence. Will it land smoothly?
First Aditya Ghose resigned. Then 4th quarter’s profit declined ( 1/4th of last year’s).
First Aditya Ghose resigned. Then 4th quarter’s profit declined ( 1/4th of last year’s).
Why did the profit fall?
Fuel prices increased by one third.
Cancelling of flights ( faulty engines) and discount war led to lower yield.
Court case against the government, falling rupee and the PR fiasco may also have impacted the earnings.
More details here.
Indigo is profitable since 2008:
In FY 13, it was the only profitable airline in India .
It avoids vanity offerings such as loyalty cards, in-flight magazines, and hot food.
Worth reading; how they made profits year after year.
Indigo wants to be Southwest Airlines
Southwest Airlines had pioneered the low cast travel in 70s.
Herbert Kelleher was its founder. He was also a lawyer, like Aditya Ghose.
Indigo flies 1000 flights a day vs 4000 flights a day by Southwest Airlines.
Worth listening: How Herbert Kelleher fought legal battle with competitors. It took three years for the maiden flight.
His famous quote: “I tell my employees that we’re in the service business, and it’s incidental that we fly airplanes.”
Worth your time: Film about how South West Airlines came into being.