IndiGo to take a long, hard look at strategy under new leadership2 min read . Updated: 30 Apr 2018, 11:19 PM IST
IndiGo will also review areas impacting profit, including how the company responds to regulatory changes, reduces risks and tackles competition from other low-fare and full-service rivals
New Delhi/Mumbai: India’s largest airline IndiGo will look to strengthen operational areas and customer interface ahead of scaling up international flights under a new leadership, two people aware of the company’s plans said.
InterGlobe Aviation Ltd, which operates the low-fare airline, on Friday named Gregory Taylor as president and chief executive officer after Aditya Ghosh decided to quit as director from last Thursday and as president from 31 July after helming the airline for a decade since its inception.
IndiGo will also review areas impacting profit, including how the company responds to regulatory changes, reduces risks and tackles competition from other low-fare and full-service rivals, the people cited above said.
An email sent to the company on the reasons for Ghosh’s departure was not answered till press time. InterGlobe’s board will meet on 2 May to finalize FY18 and fourth-quarter results.
IndiGo had to ground several Airbus A320neo aircraft powered by Pratt & Whitney engines in March after certain glitches. The airline had ordered the A320neo aircraft with its 15% extra fuel-efficiency in mind at a time when jet fuel price was rising.
In January, a Rajya Sabha panel reprimanded IndiGo for the “rude and indifferent behaviour" of some staff.
The company was also recently involved in litigation with the Delhi International Airport Ltd over shifting its Delhi airline operations from Terminal 1 to 2.
Industry watchers Mint spoke to said leadership with international experience will go well with the company’s expansion of its global footprint with long-haul flights.
Mark Martin, CEO and founder of aviation consulting firm Martin Consulting, said Ghosh, a lawyer with no aviation experience, played a vital role in shaping IndiGo and that dynamic managers tend to move on to more challenging roles. “His contribution has been superlative… As IndiGo changes gears, the call of the hour is for sound managers with global aviation experience," said Martin. New CEO Taylor has four decades of experience in international aviation.
Raamdeo Agrawal, joint director of Motilal Oswal Financial Services Ltd and an investor in InterGlobe, said Ghosh must have had a very good reason to leave and the board must have had a very good reason to let him go.
“Ghosh is the face of the airline industry in the country and I am sure that the board of the airline will find a suitable replacement for him. Having said that, he, however, alone is not the reason for the success of the airline. Though we are an investor in the airline, we haven’t sought information from the airline on Ghosh’s exit. I believe that with an apt replacement, the airline will be stronger than before," said Agarwal.