A towering billboard along New Delhi’s airport road reads: “Sleep With Your Wife.” Another proclaims: “Late Is a Four-Letter Word.” They’re campaigns by IndiGo, an Indian budget carrier luring business travelers with same-day return flights.
Such targeted marketing and an ability to deliver on its on-time promises have helped build IndiGo into the largest airline in India in less than a decade. In a market where rivals have lost $10 billion in the past six years, IndiGo has lowered costs by ordering hundreds of aircraft at once and eschewing add-ons such as free meals, becoming one of only two local carriers to make money in the last fiscal year.
Now, as the company founded by former US Airways Chief Executive Officer Rakesh Gangwal and former travel agent Rahul Bhatia prepares for an initial public offering by the end of the year, it intends to expand beyond the 33 domestic and five international cities it currently serves. Seeking $500 million, the IPO would value IndiGo at $4 billion, six and a half times the market value of its nearest competitor, Jet Airways India Ltd., and 18 times that of SpiceJet Ltd.
30/07/15 Anurag Kotoky/Bloomberg
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Such targeted marketing and an ability to deliver on its on-time promises have helped build IndiGo into the largest airline in India in less than a decade. In a market where rivals have lost $10 billion in the past six years, IndiGo has lowered costs by ordering hundreds of aircraft at once and eschewing add-ons such as free meals, becoming one of only two local carriers to make money in the last fiscal year.
Now, as the company founded by former US Airways Chief Executive Officer Rakesh Gangwal and former travel agent Rahul Bhatia prepares for an initial public offering by the end of the year, it intends to expand beyond the 33 domestic and five international cities it currently serves. Seeking $500 million, the IPO would value IndiGo at $4 billion, six and a half times the market value of its nearest competitor, Jet Airways India Ltd., and 18 times that of SpiceJet Ltd.
30/07/15 Anurag Kotoky/Bloomberg
