IndiGo kids: how a startup created a $10 billion

Rakesh Gangwal held the most important negotiations of his career in early 2005. Together with a partner, an American entrepreneur of Indian origin created the IndiGo low-cost airline in India. Planes decided to purchase from Airbus. But just buying a few airliners and hoping to build a successful business on them was promising - India had its own airlines a long time ago, including a low-cost airline, and it was not easy to take market share from them. Therefore, the partners decided to play big - to buy 100 aircraft at once, in order to make the cost of flights as low as possible due to the scale. This would allow to poach passengers from existing players.

However, everything depended on how profitable these 100 cars could be bought (entrepreneurs settled on the A320 model, suitable for domestic airlines). When buying at retail, you would have to pay $6 billion for them, but with large contracts, aircraft manufacturers give discounts, offer more favorable service conditions and generally try to do everything possible so that the contract is concluded and their own production facilities are as busy as possible.