The sudden cancellation of thousands of flights has landed IndiGo in the middle of controversies. The impact of the cancellations has led to widespread uproar while chaos has ensued at the airports. While users have been able to identify a slew of reasons behind such an issue, one of the other big reasons has been IndiGo’s market share.
IndiGo controls close to 60% of the Indian aviation market. This roughly leads to the rationale that for every 10 people who fly daily, six of them fly on an IndiGo plane. IndiGo operates close to 2,000 flights daily around the world. Due to such a significant involvement in the aviation industry, the entire aviation market has been shaken just after the cancellations of a few flights.
Two Friends Who Laid the Foundation of the Company
Founded by two friends, Rahul Bhatia and Rakesh Gangwal, the company was founded in the year 2005, and it soon took over the skies. When Rakesh and Rahul started IndiGo, they had just a single plane, at a time when Jet Airways ruled the aviation market.
The competition at that time was tough as well. Government-owned Air India was in its heyday, and Vijay Mallya had just launched Kingfisher Airlines. Despite such competition, the brand was able to achieve new echelons of growth and development.
What’s Behind the Name IndiGo
The phrase “India on the Go” led to the brand name IndiGo. While leading the brand, IndiGo took the decision of purchasing 100 planes from Airbus. This also helped Airbus to operate in the Indian market, and hence IndiGo was able to achieve a discount of close to 40–50% on the whole deal.
Rahul and Rakesh purchased 100 Airbus A320 aircraft at half price and then sold them all at a profit. This generated a profit of Rs 200 crore for IndiGo. Using this money, IndiGo leased all the aircraft and began operating in several major cities.
IndiGo Targeted the Middle-Class Flyer
IndiGo reached India’s middle class by championing the concept of affordable travel. The airline emphasised affordable and reliable service over expensive amenities. The low-cost approach made it the preferred airline for many Indians.
IndiGo’s Expansion Over the Years
IndiGo has shown remarkable growth and ambition over the years. The journey began in 2011 when the airline placed an order for 180 Airbus A320 aircraft. By 2012, it had already flown 500 million passengers, becoming the largest airline in India. Continuing its aggressive expansion, IndiGo placed another order for 100 aircraft in 2015, followed by a massive order of 250 more in 2019.
Even during the Covid-19 pandemic in 2020—when the aviation sector came to a standstill—IndiGo adapted quickly and launched its own cargo service. The airline once again stunned the global aviation industry in 2023 by placing an unprecedented order for 500 new aircraft, the largest aircraft order in aviation history. That same year, IndiGo set yet another milestone by serving 100 million passengers.
In August of this year, IndiGo had a 64.2% share of the Indian aviation market.
