Two friends started IndiGo airline with a rented plane… How did it become country’s largest airline company and got its name? It’s worth now is…

IndiGo History: IndiGo has over 60% of the Indian aviation market. Founded in 2005 by Rahul Bhatia and Rakesh Gangwal

IndiGo Airlines has been in the middle of controversies over cancellation of thousands of flights so far, causing chaos at airports, and the biggest reason behind this is IndiGo’s market share. IndiGo controls over 60 percent of the Indian aviation market. This means that for every 10 people who fly daily, six of them fly on an IndiGo plane. IndiGo planes operate over 2,000 flights daily around the world. This is why the cancellation of just a few flights by IndiGo has shaken the entire aviation market across the country.

Two friends laid the foundation

IndiGo was founded by two friends, Rahul Bhatia and Rakesh Gangwal. Founded in 2005, IndiGo quickly took over the Indian skies. When Rakesh and Rahul started IndiGo, they had just one plane. This was a time when Jet Airways dominated the Indian aviation market. Government-owned companies like Air India were also in the race, while Vijay Mallya had launched Kingfisher Airlines, turning it into a flying five-star hotel. Despite such competition, IndiGo went from zero to the top, earning the moniker “King of Airlines” within a few years.

Why was it named ‘Indigo’?

Before delving into IndiGo’s history, it’s important to understand the story behind its name. Rakesh Gangwal and Rahul Bhatia named the airline IndiGo after the phrase “India on the Go.”

IndiGo started with a rented plane

Only two aircraft manufacturers dominated the world: Boeing and Airbus. While all Indian airlines had Boeing aircraft, IndiGo announced the purchase of 100 planes from Airbus. This was a great opportunity for Airbus to enter the Indian market. Therefore, Airbus manufactured IndiGo’s planes at a 40-50 percent discount.

Rahul and Rakesh purchased 100 Airbus A320 aircraft at half price and then sold them all at a profit. This generated a profit of ₹200 crore for IndiGo. Using this money, IndiGo leased all the aircraft and began operating in several major cities.

How did IndiGo reach the pinnacle of success?

IndiGo reached India’s middle class by championing the concept of affordable air travel. The airline emphasized affordable and reliable service over expensive amenities. This low-cost approach made it the preferred airline for many Indians.

Indigo’s expansion

• In 2011, IndiGo ordered 180 Airbus A320 planes.
• In 2012, IndiGo flew 500 million passengers, making it the largest airline in the country.
• In 2015, IndiGo again placed an order for 100 aircraft.
• In 2019, IndiGo ordered 250 new aircraft.
• In 2020, when all airlines came to a standstill during Covid, IndiGo launched cargo service.
• IndiGo surprised everyone by ordering 500 new aircraft in 2023. This is the largest order ever placed in the aviation industry.
• In 2023, IndiGo created a new record by serving 100 million passengers.

By August 2025, IndiGo had 64.2 percent share of the Indian aviation market. IndiGo is India’s largest airline and the second-largest airline in Asia.