IndiGo flying high

July 03 2011

The way private airlines IndiGo have taken over the skies is nothing less than a miracle. The company has not only made a profit of Rs 700 crore, but has also placed a big order for purchasing 180 aircraft. Where companies such as Kingfisher owe crore to the Airport Authority of India, IndiGo is paying the authority money in advance and enjoying a rebate of upto 30 per cent. It has paid Indian Oil money in advance for a year for air turbine fuel and is enjoying hefty discounts as a result. The company was started by a travel agent Rahul Bhatia in 2006, who had a travel agency by the name of Globe Enterprises. Bhatia has connections in the political circles and it is believed that he has the blessings of two heavyweight Cabinet minister of the Manmohan Singh government, which could be the possible explanation for his company being so cash rich. It is being said that IndiGo has got permission to fly to Dubai and this permission has allegedly been granted by overlooking several rules by the home ministry. According to the home ministry guidelines, any private airlines wishing to conduct flights overseas should have its own security staff, but IndiGo has outsourced the function to another price security agency for the Dubai flights.

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