1. IndiGo Airlines – A Brief Report

2. Introduction
• IndiGo is a private, low-cost carrier based
in Gurgaon, Haryana, India.
• The airline started operations in August 2006
and currently is the largest airline in India by
market share.
• The airline is also one of the fastest growing
airlines in the world.

3. • IndiGo was set up in early 2006 by Rakesh S
Gangwal, a USA-based NRI and Rahul Bhatia of InterGlobe
Enterprises.
• InterGlobe holds 51.12% stake in IndiGo and 48% is held by
Gangwal's Virginia-based company Caelum Investments.
• IndiGo placed a firm order of 100 Airbus A320-200 aircraft
during June 2005 in plans to commence operations in mid-
2006.
• IndiGo took delivery of its first Airbus A320-200 aircraft on
28 July 2006, nearly one year after placing the order, and
commenced operations on 4 August 2006 with a service
from New Delhi to Imphal via Guwahati.

4. • By February 2012, IndiGo was expanding rapidly
and was making solid profits, the only airline in
India to do so. It had replaced Kingfisher as the
second largest airline in India in terms of market
share.
• IndiGo's strong adherence to a low-cost
model, buying only one type of aircraft and
keeping operational costs as low as possible
along with an emphasis on punctuality are said to
be some of the reasons for its success even when
the airline industry in India is going through a bad
patch.

5. • IndiGo focuses on adding a new plane every six
weeks and sometimes even faster.
• On 17 August 2012, IndiGo became the largest airline
in India in terms of market share (27%), which is
more than one-fourth of total market share of all the
Indian airlines combined, in the process dethroning
the full-service carrier Jet Airways, which had held
that position for many years. The airline had reached
the position just six years after operations
commenced.

6. • In January 2013, the Centre for Asia Pacific
Aviation announced with, along with Indonesian
airline Lion Air, IndiGo was the second fastest
growing low-cost carrier in the continent.
• In the same month, IndiGo became India's first
airline to take the delivery of the Airbus A320-200
aircraft equipped with sharklets. Aditya
Ghosh, IndiGo's president said that this move
would help them reduce fuel burn.

7. Facts
IndiGo
Parent Company InterGlobe Enterprises
Category Indian domestic sector
Sector Airlines
Tagline/ Slogan Go IndiGo
USP On Time Performance, Lowest Price
2

8. Facts
STP
Segment Cost Conscious Passengers
Target Group Lower Middle Class / Middle Class
Positioning Low Cost No Frills

9. Facts
SWOT Analysis
Strength
1. Strong backing Promoters and is one of the largest low cost
carriers in India
2. Only LCC to make consistent profits
3. It has one of the major airlines in India in terms of market share
4. LCC which has entered international markets has boosted its
brand value
5. Good advertising and marketing strategies have increased its
brand recall
Weakness 1.Not on too many routes as compared to competitors
2. Still has to establish itself on international destinations
Opportunity
1. Opening up of International routes
2. Largest Market share among LCCs in Indian Market
3. Middle Class taking to the skies
Threats
1. Plenty of new LCCs to compete with
2. Rising Labour costs and changing govt. policies
3. Rising Fuel Costs

10. Facts
Competition
Competitors
1.Go Air
2.Spicejet
3.Kingfisher Red
4.JetKonnect

11. Strategies For Fare Reduction
• Being a low-cost carrier, none of IndiGo's
flights have Business class or First
class sections. It offers only Economy
class seating.
• To keep fares low, IndiGo does not provide
complimentary meals in any of its
flights, though it does have a buy-on board in-
flight meal programme.

12. • No in-flight entertainment is available, but the
airline provides an in-flight catalogue Hello
6E which gives information about various duty-
free products which can be bought on board.
• IndiGo offers a premium service called IndiGo
Plus, where the passengers, at a higher fare, can
avail additional benefits like a pre-assigned seat
and a complimentary meal on board.
• It also offers a service called IndiGo Corporate
Program for corporate travellers.

13. Destinations
• IndiGo operates to 33 destinations in India and abroad
with 399 daily flights.
• Unlike most low cost carriers, IndiGo uses a hub and
spoke model used by full service airlines where the
airline flights to different destinations are routed
through its hub.
• In January 2011 IndiGo received a license to operate
international flights after completing five years of
operations.
• IndiGo's first international service was launched
between New Delhi and Dubai on 1 September 2011.

14. Awards and achievements
• IndiGo has won the following awards:
• Best LCC by the Airline Passengers Association
of India (2007).
• Best LCC at the Galileo Express Travel Awards
(2008).
• CNBC Awaaz's Travel Award for best low cost
airline(2009).
• Skytrax Awards – Best low cost carrier (2010,
11, 12.