InterGlobe to launch low-cost airline in India

Continuing its spree of big announcements, InterGlobe Enterprises has announced its plans of launching IndiGo, an Indian low cost airline venture. InterGlobe is a diversified Indian multinational corporation with significant presence in aviation management, travel technology, travel distribution services and hospitality industries. (6/21/2005)

The venture is being jointly promoted by InterGlobe Enterprises and aviation industry professional Rakesh Gangwal, and IndiGo has committed for 100 firm A320 family aircraft with Airbus. The nation-wide low-cost airline expected to be launched late this year or early next year, has come up with largest firm order placed by a domestic airline, with deal with Airbus worth US$6billion .

Airbus said it had received a letter of intent for the purchase of 100 A320 planes from IndiGo. This announcement follows the orders placed by private Indian carriers like Jet Airways, Kingfisher Airlines and the yet-to-be-launched Paramount Airways.

As per the information available, in the first year of its operation, IndiGo plans to connect 17 cities across the country, with a target of flying two million passengers. The local media says IndiGo plans to start operations with six carriers - depending on delivery schedule by Airbus - and further enhance it to 18 over a two-year period. The airline plans to employ the full fleet of 100 carriers over eight-year period. Over the first two years of operation, InterGlobe Aviation, plans to invest up to US$91 million, with plans to break-even in 15 months.

In the recent past, InterGlobe introduced ITQ (InterGlobe Technology Quotient), which is being termed as India’s pioneering operational technology consultant and converged solutions provider for the travel industry. ITQ will evaluate current technologies capabilities, recommend solutions and implement them across travel agents, airlines, cruises, hotels, tourism bureaus, car rental companies, portals and corporations in India.

The second initiative is the launch of InterGlobe Hotels, a JV with Accor Asia Pacific to develop a series of Ibis brand economy hotels across India and South Asia.

“The new ventures (ITQ and JV with Accor) have broadened the operating boundaries of InterGlobe and we are constantly in the process of identifying new goals and horizons,” said InterGlobe.

Source: eyefortravel.com