Indigo’s strategy is a masterclass in financial arbitrage, proving that strategic procurement can be more decisive than operational heritage. It effectively turned the airline business into a high-stakes game of balance sheet engineering.
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This Man Ordered 100 Planes And Made Money On Every Plane He Bought - How? #shortsIndexado:
Breaking Down Business Strategies and Stories.
This man ordered 100 airplanes before his airline had even a single passenger and made money on every plane that he bought. But how did two friends crush Vijay Mallya's Kingfisher Airlines? In 2005, Delhi entrepreneur Rahul Bhatia teamed up with his old friend Rakesh Gangwal and together they launched Indigo. The skies were ruled by Jet Airways, Air India and Kingfisher, which [music] was a flying luxury experience.
But Indians wanted cheap tickets, not five-star service. And every airline was burning cash on fuel, fancy meals and big planes. So before flying a single passenger, they ordered 100 Airbus A320s at the Paris Airshow. The bulk order got them 40 to 50% discount and then came the genius move. [music] They sold each plane to leasing companies like BOC Aviation at a profit, then leased the same aircraft back. They stuck to one aircraft type and ran every flight on economy only. And by 2012, Indigo had overtaken Jet Airways and Kingfisher had collapsed. Today, Indigo carries 64% of all domestic flyers, operates more than 440 aircrafts and is worth 1.66 lakh crores. Share this with someone who only flies Indigo and follow for more such business breakdowns.
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