ValuePickr Forum

InterGlobe Aviation - Indigo

Indigo is a good business but in a lousy industry. So it needs good management and absence of good competition to stay competitive !

The Britannia example was to show that not all business have risk of being old.

Indigo could do very well for few years until there is adverse competition.

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IndiGo announces 20 domestic, three international flights from Mumbai

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By the end of FY19, Indigo had 217 fleets thats 42% more than last yr (153).

As on date it is 219 fleets -
VT-IZW on delivery flight to join #IndiGo
Total 219 =
A320ceo 131
A320neo 72
A321neo 1
ATR 15

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Indigo-Turkish share code has made available for booking the following destinations -

  1. Copenhagen,
  2. Dublin
  3. Paris.
    All the above shall be through Istanbul.

9 more destinations will be opened up in phases, namely Prague, Vienna, Zurich, Malta, Athens, Tel Aviv, Budapest and Brussels.

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As if the aviation sector didn’t have enough to worry about.

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Precisely why aviation is such a bad sector to invest, all the more so in India where the public and the politicians have no clue how capitalism works. The sector simply has too many moving parts which are all too critical, and you will never have a time when all of them are in your favor. Even the passenger growth is a mirage – it exists only at a price that is unviable for the airline in the long run. Raise the price and growth disappears.

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IndiGo apr2019 report.pdf (124.9 KB)

The market share gain is breath-taking.

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This is Indigo partners. Not interglobe aviation.

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Does any one have idea about the projected growth rate for passenger traffic in India ?

Indigo is buying a large number of aircrafts in near future and my hunch is that this may lead to over capacity if not kept in sync with passenger growth rate.
Ofcourse, events like Jet airways shutdown gave a short term impetus to Indigo, but how is it lookingg on long term basis ?
Also, they have a big fleet of NEO’s…
any regulatory action (for safety reasons) against NEO will have a big impact on Indigo.

Opinions invited !

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Thanks for pointing the mistake … I removed the post.

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IndiGo has received approval from chinese regulator CAAC to operate daily flights to Chengdu from Delhi & Guangzhou from Kolkata.

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From the above article

HDFC AMC raised its holding in April included in InterGlobe Aviation, where its holding has gone up to a whooping 1,94,200 shares as of April 30 from 15,600 on March 31.

According to Stewart & Mackertich, improved pricing power, lower ATF coupled with rupee appreciation should aid an improvement in profitability of domestic airlines. With the global ban on Boeing 737 Max 8 planes coming into force from March, capacity is not likely to rise at the expected pace, thus demand should outpace supply in the near future. This means the prospects for yields would be encouraging, the brokerage said.

“We expect IndiGo to outperform, as it has a deep domestic network with over 43 per cent market share, availability of slots, lowest cost structure and a healthy cash balance to fuel the airline,” the brokerage said.

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The two promoters of the Gurugram-headquartered air carrier IndiGo have allegedly fallen out over yet-to-be-confirmed issues. The differences have cropped up between the two promoters of IndiGo – Rahul Bhatia and Rakesh Gangwal – and both of them have approached different law firms separately, sources told ET Now.

The differences between Rahul Bhatia and Rakesh Gangwal have allegedly grown over Gangwal obtaining greater executive control over the firm, the sources said. Rakesh Gangwal being responsible for recent top management hirings can be a possible reason for conflict between the two promoters, the source said. According to people aware of the development, Rahul Bhatia has hired JSA Law, while, Rakesh Gangwal has engaged Khaitan & Co.

What do you think would be the outcome and how serious the threat could be? can anybody put some light on this.

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Podcast | Digging Deeper: Is IndiGo headed the Jet Airways way?
The piece tries to highlight what it calls the Indian aviation sector’s beleaguered state and on this edition of Digging Deeper, we will try and focus on just that.

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Accordingly to latest statistics revealed by DGCA, Indigo’s domestic market share for month of April 2019 is 49.9%.

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Great quarter but yearly results are disappointing

575cc090-7c0f-4554-a910-292eaa10d13b.pdf (275.8 KB)

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