IndiGo has built its dominance on low fares and keeping costs down. Now, CEO Willie Walsh wants the airline to earn more from each passenger through premium seats, paid extras and its loyalty program, while holding on to the low-cost model that made it India’s largest airline.
After former CEO Pieter Elbers’ exit, IndiGo’s co-founder Rahul Bhatia in May said the carrier’s low-cost, single-aisle core will remain untouched.
“There’s scope for growth in those three segments — premium, ancillary revenues per passenger and in the longer-term loyalty,” Walsh said on Thursday’s earnings call, outlining the priorities of his early strategy as CEO.
The need is growing more urgent. IndiGo’s revenue rose 26% in the September quarter, but fuel costs jumped 67%, and the airline posted a net loss of about INR 18.8 billion ($197 million), narrower than the INR 25.8 billion ($271 million) loss a year earlier. Walsh said IndiGo had recovered only ab
Source: skift.com
