IndiGo's billionaire boss Rahul Bhatia steps in after Aditya Ghosh's exit

Indigo’s President flies off after ten years

IndiGo's billionaire boss Rahul Bhatia steps in after Aditya Ghosh's exit

Shares of InterGlobe Aviation Ltd fell almost 11% on Thursday, after India's largest airline company reported a 75% drop in its March quarter earnings the previous day.

The company, during the fourth quarter, reported a total income of Rs 6,056.84 crore as compared to Rs 5,141.99 crore a year ago.

For the year ended March 2018, Interglobe Aviation posted a net profit of Rs 2242.37 crore, up 35.1% over the preceding year. This was partially offset by a 5.4 percent YoY fall in passenger load factor, which witnessed a 280bps growth over the same quarter previous year.

IndiGo's parent InterGlobe Aviation on Wednesday reported 73 per cent plunge in profit after tax (PAT) to Rs 117.64 crore for the March quarter as higher fuel costs and foreign exchange loss took a toll on its bottom line. "We continue to execute on our growth plans and are putting in place the management team to execute our plans", IndiGo Co-Founder and interim CEO Rahul Bhatia said. Further, the airline had to ground some of its aircraft due to engine issues, thereby leading to a significant number of flight cancellations.

He said the company is in talks with the regulators for approval of long haul routes and is looking at options for wide body aircrafts for the same.

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Ghosh is leaving at a time when the airline is changing some of its most successful policies such as moving to a mixed fleet instead of operating a single aircraft class, buying planes outright instead of leasing them, and planning a new low cost, long haul service.

The company said that results include certain credits received from manufacturers to offset some of the impact of aircraft groundings and delivery delays. However, fuel expenses shot up to Rs 2,338 crore in the latest quarter under review from Rs 1,751 crore in the yearago period.

For the current fiscal, the company said that "year- over-year capacity increase in ASKs (Available Seat Kilometres) is expected to be 25 per cent". Shares of the airline ended marginally lower by 0.55 per cent at Rs 1,400 apiece at the National Stock Exchange (NSE) after hitting an intra-day low of Rs 1,360 and a high of Rs 1,443.45.

Hours after the market close that day, the airline announced the resignation of Ghosh at 7.56 pm.

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