Introduction• IndiGo is a private, low-cost carrier basedin Gurgaon, Haryana, India.• The airline started operations in August 2006and currently is the largest airline in India bymarket share.• The airline is also one of the fastest growingairlines in the world.
• IndiGo was set up in early 2006 by Rakesh SGangwal, a USA-based NRI and Rahul Bhatia of InterGlobeEnterprises.• InterGlobe holds 51.12% stake in IndiGo and 48% is held byGangwals Virginia-based company Caelum Investments.• IndiGo placed a firm order of 100 Airbus A320-200 aircraftduring June 2005 in plans to commence operations in mid-2006.• IndiGo took delivery of its first Airbus A320-200 aircraft on28 July 2006, nearly one year after placing the order, andcommenced operations on 4 August 2006 with a servicefrom New Delhi to Imphal via Guwahati.
• By February 2012, IndiGo was expanding rapidlyand was making solid profits, the only airline inIndia to do so. It had replaced Kingfisher as thesecond largest airline in India in terms of marketshare.• IndiGos strong adherence to a low-costmodel, buying only one type of aircraft andkeeping operational costs as low as possiblealong with an emphasis on punctuality are said tobe some of the reasons for its success even whenthe airline industry in India is going through a badpatch.
• IndiGo focuses on adding a new plane every sixweeks and sometimes even faster.• On 17 August 2012, IndiGo became the largest airlinein India in terms of market share (27%), which ismore than one-fourth of total market share of all theIndian airlines combined, in the process dethroningthe full-service carrier Jet Airways, which had heldthat position for many years. The airline had reachedthe position just six years after operationscommenced.
• In January 2013, the Centre for Asia PacificAviation announced with, along with Indonesianairline Lion Air, IndiGo was the second fastestgrowing low-cost carrier in the continent.• In the same month, IndiGo became Indias firstairline to take the delivery of the Airbus A320-200aircraft equipped with sharklets. AdityaGhosh, IndiGos president said that this movewould help them reduce fuel burn.
FactsIndiGoParent Company InterGlobe EnterprisesCategory Indian domestic sectorSector AirlinesTagline/ Slogan Go IndiGoUSP On Time Performance, Lowest Price2
FactsSTPSegment Cost Conscious PassengersTarget Group Lower Middle Class / Middle ClassPositioning Low Cost No Frills
FactsSWOT AnalysisStrength1. Strong backing Promoters and is one of the largest low costcarriers in India2. Only LCC to make consistent profits3. It has one of the major airlines in India in terms of market share4. LCC which has entered international markets has boosted itsbrand value5. Good advertising and marketing strategies have increased itsbrand recallWeakness 1.Not on too many routes as compared to competitors2. Still has to establish itself on international destinationsOpportunity1. Opening up of International routes2. Largest Market share among LCCs in Indian Market3. Middle Class taking to the skiesThreats1. Plenty of new LCCs to compete with2. Rising Labour costs and changing govt. policies3. Rising Fuel Costs
Strategies For Fare Reduction• Being a low-cost carrier, none of IndiGosflights have Business class or Firstclass sections. It offers only Economyclass seating.• To keep fares low, IndiGo does not providecomplimentary meals in any of itsflights, though it does have a buy-on board in-flight meal programme.
• No in-flight entertainment is available, but theairline provides an in-flight catalogue Hello6E which gives information about various duty-free products which can be bought on board.• IndiGo offers a premium service called IndiGoPlus, where the passengers, at a higher fare, canavail additional benefits like a pre-assigned seatand a complimentary meal on board.• It also offers a service called IndiGo CorporateProgram for corporate travellers.
Destinations• IndiGo operates to 33 destinations in India and abroadwith 399 daily flights.• Unlike most low cost carriers, IndiGo uses a hub andspoke model used by full service airlines where theairline flights to different destinations are routedthrough its hub.• In January 2011 IndiGo received a license to operateinternational flights after completing five years ofoperations.• IndiGos first international service was launchedbetween New Delhi and Dubai on 1 September 2011.
Awards and achievements• IndiGo has won the following awards:• Best LCC by the Airline Passengers Associationof India (2007).• Best LCC at the Galileo Express Travel Awards(2008).• CNBC Awaazs Travel Award for best low costairline(2009).• Skytrax Awards – Best low cost carrier (2010,11, 12.