IndiGo continues to prosper in troubled aviation sector

Riding on the benevolent crude oil prices, some airlines in India are making profits irrespective of the losses of more than $10 billion (approximately Rs 66,820 crore) since 2009.

The only Indian airline to have remained unaffected by the misery in the aviation sector is IndiGo, the low-cost airline, which has actually prospered in the most troubled industry, consistently reporting profits from its third year of operations.

It enjoys nearly 40% share of the Indian aviation market, the largest for any airline.

The most preferred airline had set prices between Rs 700 and Rs 765 a share for its recent Initial Public Offering (IPO), which many analysts considered steep. Not only did its sale of shares subscribed more than six times, it also made a stunning debut in the market, gaining early 18% on listing. IndiGo is now valued at around $6 billion (approximately Rs 40,092 crore).

Also Read: Indigo shares up 40% since Nov 10 debut

Complex aviation regulations, creaking airports, fierce competition, rising airport fees, exorbitant taxes, and high cost of oil were a few barriers that the airline faced with ease.

"We focus only on getting customers from point A to B safely along with their bags and serve food that will not make them sick," IndiGo president Aditya Ghosh told a press conference earlier.  

On Thursday, at 1244 hours, the shares of IndiGo's parent company InterGlobe Aviation were trading down 1.58% or Rs 16.00 at Rs 994.50 per scrip intraday on BSE.