W Power 2024

A Look Back: IndiGo Engineers A Great Flight

India's airline business can't seem to make money. IndiGo is showing how to

Published: May 28, 2011 06:04:33 AM IST
Updated: Feb 27, 2014 01:37:07 PM IST
A Look Back: IndiGo Engineers A Great Flight

WHY WE DID THE STORY: When I met a very reluctant Rahul Bhatia for this story at his Gurgaon office, the idea was to understand how he had built a successful low-cost carrier operation in India and steered it through the downturn. Private airline pioneers in India had famously said it couldn’t be done. But IndiGo passengers were delighted with the clean planes and steady on-time performance. How did he get it right? Bhatia emphasised the importance of meticulous planning and relentless cost control. He never spent a dollar, unless he was absolutely forced to, he said. He also constantly looked for ways to reduce costs.

(You can read this story here )


WHERE THE STORY STANDS: Four months after the story was published, IndiGo announced an order for 180 Airbus aircraft. The planes will be delivered between 2016 and 2025. Defining an airline’s fleet needs five to 15 years in advance certainly calls for planning. Two things struck me on hearing about the order. First, the sheer size — Airbus claims it is the largest order in history.  
The second point is that most of the planes will be Airbus’ new A320 Neo jets, an upgraded, more fuel-efficient version of the A320. The Neo promises 15 percent better fuel efficiency. 

This April, Bhatia went a step further and took another bet on new technology that promises to cut operating costs. He ordered 300 of Pratt & Whitney’s GTF (Geared Turbo Fan) engines to power the new planes. The engine promises a 30 percent cost advantage. Under pressure from a resurgent Jet Airways and a recapitalised SpiceJet, every inch of efficiency that Bhatia can grab from the system will count.

(This story appears in the 03 June, 2011 issue of Forbes India. To visit our Archives, click here.)

Post Your Comment
Required
Required, will not be published
All comments are moderated