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Lean IndiGo’s costs are soaring. Rono Dutta says it’s for growth; expect a smooth landing by 2022.

The rise in spending at India’s biggest airline — and model of running a tight ship — is showing in its numbers. But CEO Dutta says it’s all for expansion. In a rambling conversation, he elaborates on his plan of “focus cities”; the churn in the airline’s top level; the legacy he wants to leave behind, and more.
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tarunshukla
18 Nov 2019 18 Mins Read 6 comments
(Left to right) Michael Menking, head of the Airbus A320 family programme; Rono Dutta, CEO of IndiGo; and Michael Culhane, senior vice-president of CDB Aviation Lease Finance in Hamburg, Germany, where Airbus delivered its 1,000th A320neo family aircraft to IndiGo in October; courtesy of Airbus
(Left to right) Michael Menking, head of the Airbus A320 family programme; Rono Dutta, CEO of IndiGo; and Michael Culhane, senior vice-president of CDB Aviation Lease Finance in Hamburg, Germany, where Airbus delivered its 1,000th A320neo family aircraft to IndiGo in October; courtesy of Airbus
If you asked IndiGo owners Rahul Bhatia and Rakesh Gangwal what is the most critical aspect that will keep IndiGo forging ahead, they are most likely to say: constant focus on costs. Yet, while IndiGo has grown from 100 aircraft in 2016 to nearly 250 planes now, its costs have jumped an astonishing 40%. Ideally, they should have come down
with its existing model. I want to develop it. Seeing Hyderabad (as hub) and the potential of it was very visionary on my part and I will take full credit for it. And you know what? Now I see two other cities that could be the future Hyderabads and we will focus on that. ( Graphic by Sadhana Saxena)
If you asked IndiGo owners Rahul Bhatia and Rakesh Gangwal what is the most critical aspect that will keep IndiGo forging ahead, they are most likely to say: constant focus on costs. Yet, while IndiGo has grown from 100 aircraft in 2016 to nearly 250 planes now, its costs have jumped an astonishing 40%. Ideally, they should have come down with its existing model. I want to develop it. Seeing Hyderabad (as hub) and the potential of it was very visionary on my part and I will take full credit for it. And you know what? Now I see two other cities that could be the future Hyderabads and we will focus on that. ( Graphic by Sadhana Saxena)

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