A disaster looms large at IndiGo, and for once, there is no government policy to blame, nor competitive market pressures as mitigating factors. Perhaps it’s a clash of cultures between one promoter, who, despite his multi-billion dollar net worth, insists on every penny being accounted for, and another, who may see little wrong in the company doing the kind of “related party transactions” that are business as usual for several tycoon-led firms in India.
Or, maybe, it’s a battle for control of a company that aims to take its domestic success global as a 450-500-plane airline that boasts of a well-oiled low-cost structure like that of Ryanair.
Having maximized fleet utilization and crushed aircraft turnaround times for top-flight efficiency, IndiGo is a coveted asset with a hefty market share and healthy financials. Read More