IndiGo will fiercely hold on to structural cost leadership: Co-Founder Rahul Bhatia

New Delhi, Aug 5 (PTI) IndiGo Co-Founder Rahul Bhatia on Monday said the airline will fiercely hold on to its structural cost leadership and asserted that he and InterGlobe Enterprises are here to stay, amid concerns over a recent stake sale in the carrier.

Addressing an event to mark the 18th anniversary of IndiGo in the national capital, he made it clear that the stake sale was to raise funds for new businesses InterGlobe was planning and for general corporate purposes. "It is actually no more complicated than this," he added.

In June, InterGlobe Enterprises Pvt Ltd sold 7.72 million shares, representing around 2 per cent of the total share capital of InterGlobe Aviation, the parent of IndiGo.

Indian customer deserves choice and IndiGo will ensure that it happens, he said.

"IndiGo fiercely holds on to its age-old mantra of structural cost leadership... before I go, I want to convey a message to IndiGo's investor community," Bhatia said and added that InterGlobe recently sold 2 per cent of IndiGo's shares and that has raised some concerns and speculation.

"Firstly, the shares were sold to fund new businesses InterGlobe is planning and for general corporate purposes. It is actually no more complicated than this," an emotional Bhatia told the gathering.

IndiGo is the country's largest airline with a domestic market share of more than 61 per cent and operates over 2,000 flights daily. It flies to more than 120 destinations, including 33 international cities.

"I want to assure that under the able leadership of Pieter Elbers and his senior management, the employees of IndiGo won't rest till we have made our humble contribution that India has the rightful seat at the table of the global aviation," Bhatia said. Elbers is the CEO of IndiGo.

Talking to reporters later, Bhatia, who does not attend public events often, said it will welcome competition with the right cost structure and added, "If you don't have the right cost structure, over time you will struggle".

After flying for 18 years, IndiGo, which till now was known as a low-cost carrier, will introduce business class seats in select flights starting in mid-November and also launch a customer loyalty programme. It will also begin inducting wide-body A350 planes in 2027.

Complexity brings with it an additional cost but if the rewards of such complexity outweigh the associated cost, then introducing complexity, "in a thoughtful and meaningful manner should be a no-brainer," Bhatia said.

To a query on his future plans, he said, "I am here to support Pieter anytime he needs me... I really believe that India opportunities in aviation are unique and it will continue to evolve for players like us and Air India. Just need to embrace that opportunity". PTI RAM MR