IndiGo's Revival Bid
Business Today|April 18, 2021
After a brutal year, India's largest airline looks to bounce back, but there could be surprises ahead
Manu Kaushik
IndiGo's Revival Bid

On March 25, 2020, all 259 aircraft of India’s largest airline by market share, IndiGo, were grounded as the government suspended commercial flights — domestic and international —indefinitely due to rising Covid cases. While Indian aviation has seen numerous ups and downs, the MarchMay 2020 period was the worst-ever.

As the market leader and the country’s largest low-cost carrier (LCC), the scale of damage for IndiGo was bigger than the rest. While revenues stopped coming, fixed costs started eating into profits, and in turn, cash reserves. In April, agencies such as CAPA India predicted a loss of $1.5 billion for IndiGo and SpiceJet over the next six months. The impact was so brutal that some brokerages stopped tracking the sector, and IndiGo in particular. “We believe the impact on aviation sector will be severe and the ability to forecast financial consequence is difficult today, given the evolving nature of the situation. We are dropping the stock (IndiGo) from our coverage in the short-to-medium term,” Geojit Financial Services said in a note issued in May.

Not surprisingly, during the nine months between April and December 2020, IndiGo reported net losses of ₹4,659 crore (against a net profit of ₹698 crore a year ago), while revenues shrank 67.5 per cent year-on-year.

Yet, CEO Ronojoy Dutta remains confident. In the March 2020-quarter earnings call, he told a bunch of harried investors that IndiGo wants to emerge from this crisis stronger than ever. “In that context we are paying particular attention to our product, our costs, our brand and our employee culture,” Dutta had said.

Esta historia es de la edición April 18, 2021 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición April 18, 2021 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS TODAYVer todo
The EV Craze
Business Today India

The EV Craze

The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly

time-read
5 minutos  |
November 10, 2024
The Storage Boom
Business Today India

The Storage Boom

Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?

time-read
8 minutos  |
November 10, 2024
India Beckons
Business Today India

India Beckons

Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before

time-read
4 minutos  |
November 10, 2024
The Pearls of The Sea
Business Today India

The Pearls of The Sea

Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it

time-read
4 minutos  |
November 10, 2024
66.Brand persona should define the core"
Business Today India

66.Brand persona should define the core"

I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.

time-read
1 min  |
November 10, 2024
Unwind in Style
Business Today India

Unwind in Style

Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury

time-read
3 minutos  |
November 10, 2024
A Lifelong Affair with Inspiration
Business Today India

A Lifelong Affair with Inspiration

In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art

time-read
3 minutos  |
November 10, 2024
Make it Bubbly
Business Today India

Make it Bubbly

Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles

time-read
4 minutos  |
November 10, 2024
Palatial Splendour
Business Today India

Palatial Splendour

Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers

time-read
7 minutos  |
November 10, 2024
Of Beaches and Cream
Business Today India

Of Beaches and Cream

GianChand Single Malt Whisky

time-read
1 min  |
November 10, 2024