IndiGo is the largest low-cost carrier of India, with a market share of over 30 per cent. This Gurgaon-based carrier is not only leading the Indian domestic market, but is also growing at a fast pace on the global platform. It is among the rare carriers that have consistency in posting profits in different fiscal quarters. Initiated by two young entrepreneurs, the airline is a part of InterGlobe Enterprises, and aims at providing cheap airline tickets and top-notch facilities to its passengers. The company operates over 500 daily flights, catering to more than 35 destinations with a fleet size of 78 aircraft. It is looking forward to the expansion by restructuring of the shareholding, and as per reports, the company is preparing for yet another initial public offering (IPO) and inflow of Foreign Direct Investment (FDI).
FDI is made by a company or an individual of a country other than the home country either by extending business operations or purchasing shares of an existing company. However, there are certain rules that need to be adhered while taking such decisions. This sort of investment increases in-flow of resources, resulting in growth and prosperity of business. As per industry reports, the parent company of IndiGo, InterGlobe is also looking forward to such an investment, which may have a positive impact on IndiGo flight ticket prices in coming future.
As per Government of India guidelines, a foreign airline can invest up to 49 percent in equity of a domestic carrier. It is expected that the carrier may raise around $400 million, and will soon discuss the scenario with Foreign Investment Promotion Board of India (FIPB). Qatar Airways, almost a month back expressed interest in investing its resources in this LCC. However, it is still doubtful if the FDI is coming through an airline or any other channel, and it will be cleared only after the IndiGo-FIPB meeting scheduled in the month of August.
FDI is made by a company or an individual of a country other than the home country either by extending business operations or purchasing shares of an existing company. However, there are certain rules that need to be adhered while taking such decisions. This sort of investment increases in-flow of resources, resulting in growth and prosperity of business. As per industry reports, the parent company of IndiGo, InterGlobe is also looking forward to such an investment, which may have a positive impact on IndiGo flight ticket prices in coming future.
As per Government of India guidelines, a foreign airline can invest up to 49 percent in equity of a domestic carrier. It is expected that the carrier may raise around $400 million, and will soon discuss the scenario with Foreign Investment Promotion Board of India (FIPB). Qatar Airways, almost a month back expressed interest in investing its resources in this LCC. However, it is still doubtful if the FDI is coming through an airline or any other channel, and it will be cleared only after the IndiGo-FIPB meeting scheduled in the month of August.
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