New Delhi: Riding on the benevolent crude oil prices, some airlines in India are making profits irrespective of the losses of more than USD 10 billion since 2009.
The only Indian airline to have remained unaffected by the misery in the Aviation sector is IndiGo, the low-cost airline, which has actually prospered in the most troubled industry, consistently reporting profits from its third year of operations. It enjoys nearly 40 percent share of the Indian aviation market, the largest for any airline.
The most preferred airline had set prices between Rs. 700 and Rs. 765 a share for its recent initial public offering, which many analysts considered steep. Not only did its sale of shares subscribed more than six times, it also made a stunning debut in the market, gaining early 18 percent on listing. IndiGo is now valued at around USD 6 billion.
Complex aviation regulations, creaking airports, fierce competition, rising airport fees, exorbitant taxes, and high cost of oil were a few barriers that the airline faced with ease.
“We focus only on getting customers from point A to B safely along with their bags and serve food that will not make them sick,” IndiGo president Aditya Ghosh told a press conference earlier.