IndiGo Airlines appointed IATA chief William Walsh as its new CEO on Tuesday — drawing global scrutiny and sending stock prices skyrocketing. Analysts and business leaders have hailed the surprise announcement as a clear indicator that the Indian carrier is becoming globally significant.
“We’ve been saying for years that IndiGo is becoming the most consequential airline in the world. And Willie Walsh leaving IATA to run it is the exclamation point on that thesis. The man who built IAG and ran British Airways through its roughest years probably looked at every opportunity on the planet and chose India’s largest carrier,” Skift founder Rafat Ali wrote on LinkedIn.
The surprise appointment of Walsh is being seen as a coup for the privately owned budget carrier after Pieter Elbers left following a scheduling meltdown that halted travel and drew regulatory scrutiny. IndiGo shares jumped more than 9% as markets opened on Wednesday — despite a sharp hike in jet fuel prices.
Who is Willie Walsh?
William Walsh is a pilot and the current chief of the International Air Transport Association. He had previously served as the CEO of British Airways and the International Airlines Group — a holding company which owns Aer Lingus, British Airways, Iberia, Level and Vueling. His term as IATA director general ends on July 31 and he is expected to join IndiGo by August 3 at the latest.
“Walsh will be responsible for the overall management and strategic direction of the airline with a focus on transformational initiatives to strengthen the operational performance, advance the Company’s network and commercial strategy while enhancing customer experience. He will work closely with the Board and the leadership team to rightfully position IndiGo as it scales up to the next phase of its growth,” the airline wrote in a press release.
The IndiGo fleet
IndiGo had a market share of nearly 64% in January and a fleet of 440 aircraft as of end-December. It operates more than 2,200 daily flights, connecting 95 domestic and more than 40 international destinations.
Over the last few years, IndiGo has expanded its international network, including the launch of long-haul flights to Europe using aircraft ‘wet-leased’ from Norway’s Norse Atlantic. Wet leases include crew as well as aircraft. IndiGo placed a record order for 500 Airbus A320 family aircraft under Elbers, as well as its first order for A350 long-haul, wide-body jets, and departed from its no-frills strategy with the launch of a premium cabin.