IndiGo was founded in 2006 as a low-cost carrier. Through strategies like leasing aircraft to reduce costs, using a single aircraft type, and maintaining a single passenger class, IndiGo grew to become the top third airline in India by 2010. By 2012, IndiGo had a 21.3% domestic market share. IndiGo continues to focus on on-time performance, affordable fares, and hassle-free travel while pursuing profitable growth and good work conditions.
2. History of IndiGo
• Founded in early 2006 by InterGlobe
Enterprises
• Commenced operations on 4 August 2006 as a
Low Cost Carrier
• Rahul Bhatia, MD
• Aditya Ghosh, President
• By December 2010, IndiGo replaced Air India
as the top third airline in India
3. IndiGo’s Success
• Lease and buy back agreements
– Helped in spreading operational costs
• Using only A320 aircrafts
– Reduced running and fuel costs
• Agreements with manufacturers
– Reduced overhead costs
• Maintaining a single passenger class
– Helped in obtaining maximum returns
• Single brand image
– Low cost carrier
4. • IndiGo handled over 1 million passengers for
the first time in May-2011
• IndiGo held a 21.3% domestic market share at
the end of 2012
• “Only big objective is to prove that low-cost is
not low-quality"
India
domestic
market
share by
carrier:
Feb-2012
5. Indigo airlines Profit
• Entire profits of 993 crore in 2012-13 has
come from operations
Nothing Unique???
Airline Planes on lease
89%
90%
69%
93%
Planned order of planes in bulk and negotiated huge
discounts , hence, more earnings per plane from sale
and leaseback.
7. Key Facts
• Market share of 28.6% (as of November, 2013)
• On-time performance of 86.5% (as of November,
2013)
• IndiGo stands for three things: on-time performance,
affordable fares and hassle-free travel experience
• First domestic low-cost airline to have CAT III
compliant pilots
• Several industry first initiatives like web check-in,
mobile bookings, queue busters, step less boarding
ramps and air-conditioned tarmac coaches
8. three targets
• Profitable growth-money to invest in the
future
• Continue to be one of the best companies to
work for
• To become a reliable product
Aditya Ghosh, President
9. Recent News
• SpiceJet and IndiGo pulled down air-ticket prices
by 15-30% across sectors
• Boosted travel bookings by 20-30%
• Airline plans to induct 20 Airbus A321neo planes,
a larger variant of A320
• IndiGo launches eight new flights various cities
– to increase frequencies
– to connect major cities like Bhubaneshwar, Guwahati,
Dibrugarh, Lucknow and Srinagar
ET Bureau Mar 15, 2014http://www.financialexpress.com/news/spicejet-indigo-launch-discount-schemes-flight-bookings-at-travel-portals-soar/1233524/2http://www.business-standard.com/article/companies/in-a-first-indigo-opts-for-bigger-airbus-planes-113092500760_1.html