Airline giant IndiGo appears to be gearing up for the challenge of tougher competition in Indian skies, appointing its co-founder and promoter Rahul Bhatia as managing director, focusing on expanding the airline’s presence in India and internationally.
The appointment comes as Tata Group buys Air India and new budget carrier Akasa Air plans to start operations.
In addition, this development has greater significance as less Covid restrictions are expected to trigger a lot of demand, not only domestically but even in the international market segment.
Notably, the appointment also signifies that the airline’s co-founders and promoters – Rahul Bhatia and Rakesh Gangwal – are in a truce following a dispute over a shareholder agreement.
On Friday, InterGlobe Aviation’s board unanimously approved Bhatia’s appointment, effective immediately, “subject to approval by members of the company.”
Bhatia said his agenda will be transformative and will focus on expanding the airline’s presence in India and international markets and building long-term growth plans.
According to IndiGo chairman Meleveetil Damodaran, Bhatia will oversee all aspects of the airline and actively lead the management team.
Ronojoy Dutta, CEO of IndiGo, said: “I describe Rahul as a restless and driven entrepreneur who is always looking for bigger and better opportunities in any business or venture. For example, our initiative with Cargo , and the last entire digital years spearheaded by Rahul.
“We are now entering a new phase of our journey with more international and long-haul flights. Strengthening the company’s thought leadership is a timely and welcome move in this changing and exciting environment.”
The appointment announcement comes on the same day IndiGo reported a year-on-year net profit of Rs 129.8 crore for the third quarter of fiscal 2022.
The airline posted a net loss of Rs 620.1 crore in the same period last year.
Total revenue for the quarter ended December 2021 stood at Rs 9,480.1 crore, up 63.5% from the same period last year.
As of December 31, 2021, IndiGo’s fleet consisted of 283 aircraft, including 56 A320 CEOs, 140 A320 NEOs, 52 A321 NEOs and 35 ATRs, with a net addition of 4 aircraft during the quarter.
The airline operates more than 1,500 daily flights connecting 71 domestic and 24 international destinations.
Complete News Source : Business Standard
