InterGlobe Enterprises has just announced plans to launch a private airline jointly with Rakesh Gangwal, former head of Air France and globally recognised for his management skills in the airline industry. While the low-cost airline, IndiGo, is likely to take to the skies in another six to eight months, the company has gone in for a pitch to select its ad agency.
“The account size is more than Rs 10 crore,” said Seema Luthra, VP, Strategy and Chief Marketing Officer, InterGlobe Enterprises. “As of now, Lowe, O&M, Dentsu are some of the agencies that have made presentations. The first shortlisting process is still on and a decision would be made by July-end.” Luthra added that the company was looking for a “smart agency that can effectively break the clutter” through effective branding solutions.
Luthra said that the launch would happen nationwide, covering all the major metros. The initial capital investment for the airline is around Rs 350-400 crore, she informed. .
On the launch plans, Rahul Bhatia, Managing Director, InterGlobe Enterprises, said, “IndiGo is positioned to fill the fast emerging need for reliable, efficient and economical air travel.”
Rakesh Gangwal, who has spent over 20 years in senior management positions at United Airlines, Air France and US Airways, said, “IndiGo will serve the nation's air travelers with superior customer service and provide great value for money.”
The announcement is keeping in line with InterGlobe's recent strategy to enter consumer segments with products and services that deliver value for money and comes on the back of its recent announcement of a joint venture with Accor to build the Ibis range of economy hotels in the subcontinent. In the initial phase, 25 hotels are expected to be put up over the next few years.