FDI no go with IndiGo
26 September 2012
After the government announced that 49 per cent foreign direct investment would be allowed in Indian airlines, budget carrier IndiGo on Tuesday categorically said it has no plans to take on board a foreign partner to expand its business.
This is in contrast to most other airlines, especially the struggling Kingfisher, who are gung-ho about taking on foreign partners.
"We are not looking at any investment ... so it does not matter to us. We are certainly not looking at investment by foreign airlines at this point of time," IndiGo president Aditya Ghosh told reporters on the sidelines of an All-India Management Association summit in Mumbai.
The Gurgaon-based carrier, run by InterGlobe Enterprises, is the market leader with 27.6 per cent market share as of August, unseating the long-time market leader Jet Airways, which with its budget service Jet Konnect had a combined share of 25.2 per cent during the month.
Ruling out any downward revision in fares following the two full service carriers, Air India and Jet Airways, announcing special promotional rates on advance bookings for the upcoming festival season, Ghosh said his no-frills airline's fares are always low.
"We always maintain low fares irrespective of the trends or the seasons," he said.