Experts indicate that while Rakesh Gangwal who has worked with United Airlines
and US Airways wants to expand internationally, Rahul Bhatia wants to consolidate in the domestic market. Says an analyst at a domestic brokerage, “The pace of expansion especially on the international routes has implications on long haul operations, the requirement of wide-bodied aircraft and whether the company will offer additional services as is the case with some international airlines and thus deviate from its no-frills model.” IndiGo
flies to 17 destinations and has a market share of 6.5 per cent. However, most of the international routes are short-haul destinations. The company currently has a code share arrangement with Turkish Airlines.
The other impact could be the reshuffling of top management as several senior employees with international experience have been brought in by Rakesh Gangwal. The fallout and exit of former CEO Aditya Ghosh
was largely due to the differences between the promoters, say analysts adding that the issues were on the boil for some time now.
However, the differences have so far not impacted the company’s competitive position. The issues at Jet Airways and lack of capacity has helped players such as InterGlobe gain both in load factors as well as pricing. InterGlobe’s market share has improved by 450 basis points since January 2019.