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Indigo Business


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Assignment for understanding the business of Indigo Airlines as of July 2015

Published in: Travel
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Indigo Business

  1. 1. Presented by Ankur Madharia 1502034 “Go IndiGo”
  2. 2. To be the best Airline in India by providing the following values to the customer: - Affordable Fares - On-time performance - Hassle-free Service Mission Statement
  3. 3. Company Owners • Set up in early 2006 by Rakesh Gangwal and Rahul Bhatia, of InterGlobe Enterprises. • InterGlobe holds 51.12% stake in IndiGo and 48% is held by Caelum Investments, a Virginia, US based firm, run by Rakesh Gangwal.
  4. 4. The only airline to make a profit in the low-cost aviation segment during 2011-12 and 2012-13. Has a fleet size of 93, largest in India. Received lowest number of complaints per passenger in India. Provides its service at 38 destinations in India, 5 overseas. Operates more than 600 flights a day On-time performance of 94.3% SomefactsaboutIndiGo
  5. 5. • InterGlobe sets up infotech services with Galileo International1999 • PartnershipwithAccorHotelsGroup2002 • 100 orders of Airbus A320 aircrafts2005 • IndiGo airlines makes its debut2006 • 1 million passengers • Introduction of 1st and only stepless ramps 2007 • Becomes no. 3 airline by overtaking Air India2010 • Launch of its 1st international flight • Placed order of 180 new aircrafts 2011 • Becomes largest airline in India by overtaking Jet • Launched its mobile app “GoIndiGo” 2012 • Very close to 100 million passengers • Operating 600 flights a day2015 MILESTONES
  6. 6. AWARDS
  7. 7. IndiGo 39% SpiceJet 12% GoAir 9% JetAirways/ JetLite 22% Air India 16% Vistara 2% Market Share IndiGo SpiceJet GoAir JetAirways/ JetLite Air India Vistara
  8. 8. FINANCIALS Net Revenues INR 11,117 crore Passenger Revenues INR 9,924 crore Net Profits INR 720 crore Revenue per passenger INR 4.29 Revenue per seat-km INR 3.78 Market Share 36.4% FY 2014-15 FY 2015-16 Net Debt INR 2,474 crore Target IPO INR 2,536 crore Net Valuation INR 19,500 crore Market Share 39%
  9. 9. Strengths Strong backing Promoters Consistent profits One of the major airlines in India in terms of market share LCC (brand value) Good advertising strategies Weaknesses Not on too many routes Need to establish itself on internationally Opportunities Opening up of International routes Largest marketshare among LCCs in Indian Market Middle Class taking to the skies Threats Plenty of new LCCs to compete with Rising Labour costs and changing govt policies Rising Fuel Costs
  10. 10. COVERAGE
  11. 11. • Hoarding at airports • Social networking media - Facebook, Twitter, YouTube • Multi- storeyed building and offices. • Magazines. • Sponsoring fashion shows, talent hunts, new year parties, etc. Advertisement Strategy
  12. 12. • Single type of airplane to reduce training and service cost • On time performance • High Passenger load factor – Flight occupancy percentage • One of the lowest Cancellation rate in industry • Lean Workforce • No frills such as free food/drinks, lounges Success Factors
  13. 13. Growth Prospects • Potential to become a global leader amongst low cost carriers. • Expected fleet size of 120 planes by 2016. • Valued at $3 billion (INR 2,600 crore). • Brand building through advertisements using the profits. • Use the social media platform to ramp up their presence when millions of fans already love them for this. • InterGlobe Aviation, the airline’s holding company, has filed its draft prospectus with the market regulator this week and is expected to raise close to $400 million by selling an estimated 12% of its shares.
  14. 14. Thank you