Owner of IndiGo, India's biggest airline, files for IPO. On making a flight booking directly with us, you can enjoy the lowest booking and cancellation fee, exclusive flight offers and add … Having said that – success has not come easily for IndiGo! For now, the ball is in the SEBI's court which will have to take a call on how to deal with in a corporate battle which also involves alleged flouting of its guidelines. The result for the next quarter is likely to be even worse, as the airline was grounded until just over a week ago. Back in 1991, Rahul Bhatia, the co-founder of low-cost carrier IndiGo, was involved in his father's airline agency Delhi Express when his father's partners - about nine of them - acquired majority control in the company. Gangwal seems to have realised that it's time that their rights should be equal," says an aviation consultant. Back in 1991, Rahul Bhatia, the co-founder of low-cost carrier IndiGo, was involved in his father's airline agency Delhi Express when his father's partners - about nine of them - … Even though, Rahul wanted to opt for teaching as a career, looking at his father’s health he took the emotional decision of joining the family business in 1988. Such small steps help them to achieve the turnaround time. A history lesson for the Tatas (and Indigo) as they consider buying out Air India A look at the airline’s roller-coaster fortunes over the years. With a net worth of $3.6 Billion – Rahul Bhatia is the 38th richest person in India and the founder of InterGlobe Enterprises Limited that owns IndiGo, the largest and most profitable airline in India. IndiGo was born with both partners owning 50 per cent stake each. The other benefit of such a lease agreement is that, since IndiGo’s aircraft is new, it does not have to go through frequent overall checks, which may call for major repairs. Additionally, the deal also included a Sale-and-leaseback financial model! At the beginning, Bhatia's IGE Group took the economic risk of over Rs 1,100 crore (almost six times its contractual obligation), and sweeping rights to appoint three out of six directors of IndiGo, chairman of the board, managing director, CEO, and president. "Over the years, Bhatia has earned substantial money from these RPTs which have perhaps more than compensated him for his higher investment in IndiGo than Gangwal. The success of IndiGo is largely because of their unique business model and operational strategies used by the company. First, they use software to optimize flight planning for minimum fuel burning routes and altitudes, and also use latest fuel saving technology. Their ground staff has been trained to deplane all passengers in six minutes, unload and load the hold within 10 minutes, with strict instructions to remove dirt, dust and waste from the aeroplane, and get the plane ready to fly again in 25 minutes or less! Ltd, Founding Team members of Pangram Marketing and Solutions, Indiabulls – A success story of an unsung hero. The airline was founded as a private company by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal, a United States-based expatriate Indian in 2006. With aviation fuel prices soaring, and the rupee dropping, these were some of the most difficult days for the Indian airline industry. Due to this, Indigo is able to fly for a longer duration and save up on airport charges, and maintain a high aircraft utilization rate of more than 11.5 hours per day per plane. Now, moving on to the operations end of the airline…. And with a 36.8% market share, the company has grown on to become the largest airline in India. ", Also Read: Why Titan Company investors lost over Rs 21,000 crore in last eight trading sessions, Also Read: Email 'six minutes' before board meeting, other transgressions that led to the IndiGo blowout, Also Read: Anil Ambani's RInfra claims all lenders signed agreement for debt resolution, share surges 11%, Why Titan Company investors lost over Rs 21,000 crore in last eight trading sessions, Email 'six minutes' before board meeting, other transgressions that led to the IndiGo blowout, Anil Ambani's RInfra claims all lenders signed agreement for debt resolution, share surges 11%, Honor 20 review: Not perfect but a good enough device, No competition between us and PewDiePie, says Bhushan Kumar of T-Series. ", "The company will remain eternally grateful to Mr. Gangwal for having attempted to hold the company's business to ransom, as this paved the way for the company to institutionalize an area of operations which Mr. Gangwal had kept as his exclusive preserve. Order Online Tickets Tickets See Availability Directions {{::location.tagLine.value.text}} Sponsored … "Today, IndiGo is at a watershed moment. But, the power of relationships triumphed and all the airlines whose business had been with the old company moved to InterGlobe without exception. Talking about his personality, Rahul is one of the very few guys from the airline industry who prefers to casual shirts to business suits, holds an understated approach and maintains a low profile to avoiding external distractions and to stay focused on business and can be seen running away from the spotlight. By now they had paid out a total of $600 Mn in dividends. All rights reserved. Luxury Travel & Lifestyle expert Amy West on how Southwest Airlines is allowing miniature horses on its planes. © 2014-2020 Yo! And with that in hand, he started InterGlobe! But InterGlobe wasn’t IndiGo back then. And by December 2010, with a market share of 17.3%, IndiGo managed to replace Air India as the third largest airline in India, just behind Kingfisher Airlines and Jet Airways. InterGlobe owned 51.12% stake and Caelum Investments held 48% in IndiGo. The company is also involved in Fuel hedging after the government allowed it in 2007. I hope both factions sit down in private and resolve differences amicably before any serious damage is done to the morale of the company," says Devesh Agarwal, an aviation expert. The smaller regions are connected with our fleet of ATRs and the larger cities with the A320ceo, A320neo and A321neo aircraft. ", "The genesis of Mr. Gangwal's angst lies elsewhere - the refusal of the IGE Group to succumb to his unreasonable demands to dilute the IGE Group's controlling rights. Rahul and his father had been talking about starting an airline, but Rakesh was somehow hesitant of getting into the business, due to the high mortality rate of the industry. In 1994, they also managed to gain the all-India franchise for what is now Galileo International (an airline reservation system), and then a Joint Venture with them to provide back-office services in 1999, as well. IndiGo’s fleet is comprised mainly of A320 family jets. Yo! Menu & Reservations Make Reservations . All he had with him was a degree along with a two-year stint at IBM. Due to which Airbus was very much fine with accepting his terms. Interglobe Aviation on Thursday posted a quarterly loss of Rs 1,062 crore, its biggest ever since the owner of IndiGo airline went public four years ago, primarily due to its failure to keep a check on costs. Post this, Rahul and his father were asked to leave the company. Indigo Partners also owns major stakes in Santiago, Chile-based JetSmart and Hungarian Wizz Air Holdings Plc WIZZ.L. Photo: BriYYZ via Wikimedia Commons IndiGo will come back strong. Well, two words – Rakesh Gangwal! Budget carrier IndiGo on Thursday said it has become the first domestic airline to have 200 aircraft in its fleet. Anvar Alikhan ", "We recognize that there are influential and powerful people on the Company's Board who will use their position to influence the outcome of the campaign that the RG Group has embarked upon. Other than that, the advantage IndiGo also had was that they were making a bulk deal, which helped them bring down a lot of costs too! After completing his degree he had come back to India with an aim to set up a telecom venture with Nortel to make digital telephone exchanges. IndiGo is the world’s biggest buyer of Airbus’s best-selling A320neo-family of jets, having ordered as many as 730 of them, and is the market leader in India. Who is the owner of Indigo Airlines? Beginning last October, both sides started firing letters addressed to the company board accusing each other of mala fide intentions. Read full article. “A businessman by blood, but a business writer out of passion”! By the end of 2007, the company received 15 more aircrafts. Soon, they also surpassed several competitors to become the second largest and fastest growing low-cost carrier in Asia just behind Indonesian airline Lion Air. India, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 percent stake and offload about $5.1 billion of its debt. Once bitten, twice shy. Their friendship dates back to 1985 when the two had first met at the Chicago headquarters of United Airways where Gangwal worked for 10 years - even working alongside IndiGo's current CEO Ronojoy Dutta which Gangwal says is Bhatia's man - before moving on to other assignments in Air France and US Airways Group (where he was chief executive and chairman). Indigo has major ownership stakes in four low-cost airlines, including Frontier Airlines (U.S.), JetSMART (Chile), Volaris (Mexico) and Wizz Air (Hungary). Friends turned business partners who went on to establish Asia's largest carrier, the story of Gangwal and Bhatia could well be a movie script. Airbus' rival Boeing had captured 90 per cent of the Indian market at that time; Airbus was desperate to make it big in India, and Gangwal knew it too well. Gangwal also raises objections on the EY audit which was set up to look into these allegations. It was, what is now called InterGlobe Technologies, that took care of their IT Services and BPO section, which mainly specialized in travel, transportation and hospitality. Get directions, reviews and information for Hotel Indigo in Oklahoma City, OK. Hotel Indigo 621 NW 8th St Oklahoma City OK 73160. IndiGo currently has flights to and from over 60 domestic destinations in India. Travel was never the first career choice for Rahul! 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