Today Indigo is India’s largest passenger airline with a market share of more than 43% as of September 2018 data released by the DGCA. (See: DGCA Data). Since inception, the world has seen the airline grow at a brisk pace. From a carrier with just one plane in August 2006, today Indigo operates flights connecting 50 destinations – 42 domestic and 8 international – with its fleet of 161 latest series aircraft. Indigo became the largest single airline to place 250 Airbus A320neo order worth $27 billion in August 2015. After surpassing rest of the domestic carriers, Indigo became the second-largest growing low cost carrier in Asia just behind Lion Air in January 2013. Indigo has till date maintained its topmost position as the largest airline in India.
In 2016, IndiGo’s President and whole-time Director Aditya Ghosh after more than a decade of distinguished service took home Rs 27 crore in salary, including Rs 20.9 crore in one-time incentive.
IndiGo was also generous in rewarding its 12,000-plus employees with an average 42 per cent rise in remunerations in FY16.
In 2018, however, a time has come when its co-founder and interim IndiGo CEO Rahul Bhatia has to urge its employees to help reduce costs further.
This situation is after the parent Inter Globe reported the first-ever quarterly loss at Rs 652.1 crore in September following its listing in November 2015.
Besides seasonal factors higher costs and intense competition also had a bearing.
Despite a setback, IndiGo was the first airline to offer Rs 899 air fare this season.
IndiGo CEO Rahul Bhatia in an e-mail to the employees expressed “disappointment” at the financial performance, and mentioned that the Indian aviation industry is facing significant economic pressures from two elements which are beyond our control – fuel prices that have increased by more than 40 per cent year-on-year and depreciation of the rupee. He had to finally admit that this year has been unusually different.