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Management of IndiGo Airlines
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This presentation explains about the Functions Of Management At IndiGo airlines with regards to Planning, Organising, Directing, Staffing, Controlling alongwith its SWOT analysis and masterstrokes.
4. IndiGo is a low-cost airline headquartered at Gurgaon,
India.
The airline was founded as a private company by Rahul
Bhatia and Rakesh Gangwal in 2006.
Since 2012, its the largest airline in India in terms of
passengers carried, having a current market share 36.8%.
The airline operates 818 daily flights to 41 destinations and
is the second largest low-cost carrier in Asia.
It has its primary hub at Indira Gandhi International
Airport, Delhi.
The company went public in November 2015.
5. Parent Company InterGlobe Enterprises
Category Indian domestic sector
Tagline Go IndiGo
USP On Time Performance, Lowest Price
Segment Cost Conscious Passengers
Target Group Lower Middle Class / Middle Class
Positioning Low Cost, No Frills
6. • Opening up of
International routes
• Untapped cities
• Increasing flight
frequency
• Plenty of new
competitors
• Rising Labour and
Fuel costs
• Unfavorable govt
policies
• Low operating routes
• Not globally
established
• IndiGo is not exploring
the untapped domestic
air cargo market
• Strong Promoters
• Largest Low Cost
Carrier (LCC) in India
• Only airlines to make
consistent profits
• Good advertising and
marketing strategies
Strengths Weaknesses
OpportunitiesThreats
8. In IndiGo, before launch of new products or introduction of new
schemes, market survey is done.
IndiGo has developed a strategic plan which guides the long-term
operations of the firm.
Strategy has been adopted to minimize operational costs and at the
same time ensure that quality is maintained.
Management plans the activities of the organization as they have to
take account of what is necessary with the appropriate prevailing
conditions.
The company’s marketing strategy is based on customer experience
and quality of the service in order to improve its image.
10. All activities are divided into task
groups with professionals and
experts.
IndiGo coordinates operations in
all its units across the world to
ensure that there is a smooth
running.
Most of the purchasing activities
are done centrally so as to
minimize the costs and ensure
uniformity.
This structure coordinates and
motivates employees so that they
work together to achieve goals.
11. BETTER STAFFING LEADS TO
HAPPIER PEOPLE.
IndiGo hires highly qualified and
talented employees that add value to
the company.
IndiGo's executives, including staff at
the check-in counters, air crew, sales
and marketing staff are hired only
after Rahul Bhatia meets each of
them individually.
The company has a team of very
competent employees that are hired
through a competitive process. Rahul Bhatia, Founder, IndiGo
12. In comparison to competitors, the workers are provided with
healthy working conditions, incentives and motivation.
Teamwork is encouraged across all hierarchical levels and
all members of staff are given an opportunity to participate in
decision-making.
Creativity and innovation is highly encouraged among the
employees in order to give the firm a continuous competitive
advantage.
IndiGo enjoys a good relationship with other external
stakeholders such as various governments, shareholders,
and the local community.
13. In IndiGo, the increasing profits shows that in the
organization activities are performed as per the plans, also
the organizations resources are being used effectively and
efficiently.
IndiGo closely monitors its operations and evaluates its
performance against organizational targets.
Auditing is normally carried out on a regular basis to ensure
that the organization is moving in the right direction.
Any deviation from the set standards is adjusted through
appropriate corrective measures.
15. Buy only one aircraft model, but order in bulk
• By purchasing many planes at once, IndiGo is able to
negotiate great deals. In addition, buying only one
model of aircraft means that pilots and crew needs to be
certified for one aircraft only, resulting is in greater
flexibility by making use of the same crew thereby
cutting hiring, training and upgradation costs.
Quality : Key to good service
• IndiGo's executives are hired only after Bhatia meets
them individually. IndiGo boasts of a turnaround time
(time taken for a plane to be ready for the next flight) of
less than 30 minutes. Less time on the ground means
more time in air, reducing fuel burning. IndiGo's aircraft
spend an average of 11.4 hours a day in sky, compared
to the industry average of 9.5 hours.
16. Lease the planes
• Immediately after IndiGo takes delivery of an aircraft from Airbus, it sells
the plane to an aircraft lessor, and then leases the plane back. At the end
of the lease, IndiGo returns the aircraft to the lessor. Other airlines uses
"leasebacks" for portions of their fleets, but none to the extent of IndiGo.
This act of financial engineering allows the airline to keep its cash flow
high, and its debt low.
Put an expiration date on aircraft
• Another benefit of IndiGo's lease strategy is that it allows the company to
keep its fleet extremely young. The company's leases typically range from
just three to six years before the aircraft is returned. According to the
company's prospectus, the average age of IndiGo's aircraft is 3.26 years.
That's one of the youngest fleets anywhere in the world. Newer planes are
typically more fuel efficient and require less maintenance, which cuts
down on operating costs.
17. A dedicated airlines with no frills
• IndiGo freely admits the offerings are “no frills”.
Having only Economy class means that Indigo
does not have to spend time and money on
privilege passengers. They also don't maintain
any expensive lounges at airports or offer free
food and beverages for passengers, further
reducing costs.
It's all about customer focus
• IndiGo's success model relies on consistent low
fares, on-time performance and least flight
cancellations. However, the airline's biggest edge
over others is its emphasis on customer focus.
Fliers want on time journey. Other airlines
advertise low fares or other promotional offers,
IndiGo only focuses to on-time performance.