Pieter Elbers fails the India test
Global airline executives have always been sceptical about working for Indian airline owners. Unlike the management-run carriers in the west, Indian owners — and sometimes even their spouses — have been notorious for interfering in the day-to-day functioning of their carriers.
During meetings held by owner Naresh Goyal, often termed darbar by Jet Airways employees, top CXOs would line up to seek permission for the smallest of changes from Goyal and his wife Anita.
Pieter Elbers had none of those problems. Handpicked by Rahul Bhatia, who holds a 37% stake in the airline, Elbers was given a completely free hand to run India's largest carrier.
Elbers was a much sought-after global executive who played a key role in developing Dutch carrier KLM and Schiphol as an international connector, and was popular among employees. Former CEO Ronojoy Dutta's tenure ended early because IndiGo risked losing the race to hire Elbers to a Middle Eastern carrier.
"Bhatia was very enthusiastic about bagging him as CEO. Rightly so. IndiGo had come out of Covid and was chalking out plans to become a global carrier. It needed a face that was respected in global aviation circles," said an executive at the carrier.
At IndiGo, Elbers quickly got to work building the airline's global strategy and brand. He set a target of nearly doubling the share of international business to 40% by 2030.
He coined the term "India by IndiGo," which became a recurring promotional tagline for the airline. He was often seen celebrating Indian festivals in traditional attire, and most of IndiGo's new destination launches featured Elbers waving the national flag.
He also built his own team, frequently sidelining IndiGo veterans while fast-tracking others. "He was as conscious about his own brand as he was about IndiGo's, and had strong likes and dislikes. You had a short window to gain his trust — or be sidelined," an IndiGo official said.
To his credit, Elbers was on the right course. The airline sharply increased its share of international business, introduced business class on domestic routes, and launched flights to Europe well ahead of the original 2027 target by leasing aircraft.
Analysts were buoyant. Elbers faced no real competition, with Air India still struggling for a turnaround under the Tatas and SpiceJet a fraction of its former self.
"He was a man in a hurry and wouldn't take no for an answer. The sales team once flagged that resources were too stretched to simultaneously market so many new destinations. There were prompt changes in the team, and one senior official was asked to leave," said an airline official.
This bred an environment of sycophancy, where employees raced to become the CEO's favourite. When new pilot rest rules kicked in early November, several senior IndiGo officials flagged that the airline's crew strength was insufficient to handle the volume of flights.
IndiGo had always maintained a roughly 4% buffer in pilot strength to cater to extraordinary situations. With increased crew requirements under the new rules, that buffer had disappeared.
Pilots were stretched thin through frequent reassignments, longer workdays, and extended deadheading — travelling as passengers to operate flights from another location.
"Senior officials kept suggesting the hiring of more pilots, but management turned them down, saying utilisation remained low. No one voiced their concerns strongly, fearing repercussions — and one fine day, everything broke down," said a person aware of the developments.
The chaos played out for days on television. The government faced severe criticism from the opposition.
"Bhatia takes pride in having built IndiGo into not merely a strong airline but a public utility for the country. This was his worst nightmare. The fate of Elbers was sealed that day," the person said.
While a smooth handover had been planned, people close to Elbers said he asked for an early exit citing personal and health reasons. The stress was visible. He appeared irritated during a press conference in January when a journalist asked whether the blame for the meltdown lay with him. Elbers did not respond to requests for comment for this article.
In his communication to IndiGo employees, Bhatia was unambiguous about why Elbers was being removed.
"What happened last December should never have taken place. Our customers didn't deserve it, and nor did all of you," he wrote in the email, reviewed by ET.
The company's share price reacted positively. "Historically, leadership transitions have been smooth, with founder oversight ensuring continuity," Prateek Kumar of Jefferies wrote in a note.
In September 2022, while introducing Elbers to IndiGo employees, Bhatia had quipped that he was handing over the keys of the company, according to a person who was present at the gathering.
"He really meant that — Elbers was allowed to run the airline as his own. But after what happened in December, he lost all moral authority to lead the company. At 65, by taking the keys back into his own hands, Bhatia showed the world that he has skin in the game," the person said.
During meetings held by owner Naresh Goyal, often termed darbar by Jet Airways employees, top CXOs would line up to seek permission for the smallest of changes from Goyal and his wife Anita.
Pieter Elbers had none of those problems. Handpicked by Rahul Bhatia, who holds a 37% stake in the airline, Elbers was given a completely free hand to run India's largest carrier.
Elbers was a much sought-after global executive who played a key role in developing Dutch carrier KLM and Schiphol as an international connector, and was popular among employees. Former CEO Ronojoy Dutta's tenure ended early because IndiGo risked losing the race to hire Elbers to a Middle Eastern carrier.
"Bhatia was very enthusiastic about bagging him as CEO. Rightly so. IndiGo had come out of Covid and was chalking out plans to become a global carrier. It needed a face that was respected in global aviation circles," said an executive at the carrier.
At IndiGo, Elbers quickly got to work building the airline's global strategy and brand. He set a target of nearly doubling the share of international business to 40% by 2030.
He coined the term "India by IndiGo," which became a recurring promotional tagline for the airline. He was often seen celebrating Indian festivals in traditional attire, and most of IndiGo's new destination launches featured Elbers waving the national flag.
He also built his own team, frequently sidelining IndiGo veterans while fast-tracking others. "He was as conscious about his own brand as he was about IndiGo's, and had strong likes and dislikes. You had a short window to gain his trust — or be sidelined," an IndiGo official said.
To his credit, Elbers was on the right course. The airline sharply increased its share of international business, introduced business class on domestic routes, and launched flights to Europe well ahead of the original 2027 target by leasing aircraft.
Analysts were buoyant. Elbers faced no real competition, with Air India still struggling for a turnaround under the Tatas and SpiceJet a fraction of its former self.
"He was a man in a hurry and wouldn't take no for an answer. The sales team once flagged that resources were too stretched to simultaneously market so many new destinations. There were prompt changes in the team, and one senior official was asked to leave," said an airline official.
This bred an environment of sycophancy, where employees raced to become the CEO's favourite. When new pilot rest rules kicked in early November, several senior IndiGo officials flagged that the airline's crew strength was insufficient to handle the volume of flights.
IndiGo had always maintained a roughly 4% buffer in pilot strength to cater to extraordinary situations. With increased crew requirements under the new rules, that buffer had disappeared.
Pilots were stretched thin through frequent reassignments, longer workdays, and extended deadheading — travelling as passengers to operate flights from another location.
"Senior officials kept suggesting the hiring of more pilots, but management turned them down, saying utilisation remained low. No one voiced their concerns strongly, fearing repercussions — and one fine day, everything broke down," said a person aware of the developments.
The chaos played out for days on television. The government faced severe criticism from the opposition.
"Bhatia takes pride in having built IndiGo into not merely a strong airline but a public utility for the country. This was his worst nightmare. The fate of Elbers was sealed that day," the person said.
While a smooth handover had been planned, people close to Elbers said he asked for an early exit citing personal and health reasons. The stress was visible. He appeared irritated during a press conference in January when a journalist asked whether the blame for the meltdown lay with him. Elbers did not respond to requests for comment for this article.
In his communication to IndiGo employees, Bhatia was unambiguous about why Elbers was being removed.
"What happened last December should never have taken place. Our customers didn't deserve it, and nor did all of you," he wrote in the email, reviewed by ET.
The company's share price reacted positively. "Historically, leadership transitions have been smooth, with founder oversight ensuring continuity," Prateek Kumar of Jefferies wrote in a note.
In September 2022, while introducing Elbers to IndiGo employees, Bhatia had quipped that he was handing over the keys of the company, according to a person who was present at the gathering.
"He really meant that — Elbers was allowed to run the airline as his own. But after what happened in December, he lost all moral authority to lead the company. At 65, by taking the keys back into his own hands, Bhatia showed the world that he has skin in the game," the person said.
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