A study on Indigo and it's airline service.

1. 12 - Yohan D'souza
26 - Nikhil Mampilly
27 - Leanne Mascarenhas
39 - Elaine Pereira

2. Why we chose the industry
● Tough business -
○ Profit margins are thin,
○ Fixed costs are high,
○ Capital expenditures are large,
○ Government regulation are unstable
○ Outbreak of disease, recession, war or terrorism affects it
● Glamorous business -
○ Breathtaking technology
○ Thrill of defying gravity
○ Childhood dream
○ Allure of exotic destinations
● Supporter of Trade & Tourism
“If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it.”
President Ronald Reagan.”

3. ● Civil Aviation Industry - fastest growing (3 years)
● India considered as 3rd largest domestic civil aviation market in the world;
largest in next 10 to 15 years
● India to become 3rd largest air passenger market by 2025; displace UK by
2025
Indian Aviation Industry

4. CAGR 12.72%
FY06 - FY18
Reached 308.75 Mil
India’s
18.28% YoY FY18
293.28 Mil by FY20
1-.43% YoY FY18
76 M by FY20
As of May’18, 558 commercial aircrafts in operation in India
Market Size

5. Domestic Airline Traffic
1.15 million passengers - July’18

6. On Time Performance
For metro cities - Delhi, Mumbai, Hyderabad & Bengaluru

7. ● Expected to witness $15.52 Billion worth of investments in next 5 years
● $1.83 Billion investment by Indian Govt by 2026
○ Development of airport infrastructure
○ Aviation navigation services
● AAI to invest $ 2.32 Billion in 2018-19
○ Expand existing terminals & construct new ones
Investment in Indian Aviation

8. About IndiGo

9. About IndiGo
Launch of 24 new flights on its network including services on four new routes, the
operations on which would start from September 2018.
The new routes on which the airline would start operation are between
Ahmedabad and Bhubaneswar, Ahmedabad and Varanasi, Hyderabad and Patna
and Kolkata and Surat.
The airline will provide a second flight between Agartala and Guwahati, Hyderabad
and Guwahati, and Kolkata and Nagpur, an airline statement said.
The carrier will run a fourth flight between Hyderabad and Bhubaneswar and a
fifth flight between Ahmedabad and Hyderabad.
The airline has a fleet of 160 Airbus A320 and nine ATR aircraft as of June 30 and
offers 1,157 daily flights connecting 44 domestic destinations and eight
international destinations.

10. IndiGo stands for 3 things

11. Technological
1. Modern Aircrafts
2. Modernised
Airports
3. Greenfield Airports
Socio cultural
1. Growing middle
class
2. Leisure domestic
travel
3. Status Symbol
4. Foreign tourist
Political
1. Low entry barriers
2. Open sky policy
3. FDI
PEST
Economic
1. GDP growth
2. Hike in Average
income
3. Rising ATF price
Pest Analysis

12. Internal factors
Strengths
1. Cost Leadership
2. High Market share
3. Advertising &
Marketing strategies
Weakness
1. No differentiation
2. Too many routes
3. Low International
recognition
External factors
Threats
1. High ATF
2. Changing FDI policies
3. Barriers to exit
Opportunities
1. International Markets
2. Chartered Services
3. Increase flight
frequency
SWOT Analysis

15. ● Managed to close a deal for 100 aircrafts and at a low down payment
● They made a bulk deal, which helped them bring down a lot of costs too
● Buying a single type of aircraft (Airbus A320) in similar seating configuration
● A Sale-and-leaseback financial model
IndiGo Strategies for success

16. Operations end of the airline
● Offers only Economy Class seating that accommodates 180 passengers per
aircraft
● Does not provide in-flight entertainment or complimentary meals
● Quickest turnaround time
IndiGo Strategies for success

17. Destinations that the airline flies to
● Lesser number of destinations than its competitors, but then holds a higher
frequency
IndiGo saves fuel by using different ways
● Software to optimize flight planning
● Airbus A320 NEO
● Fuel hedging
● Aircraft taxies to the terminal with one engine, shutting down the second
engine to save fuel
IndiGo Strategies for success

18. IndiGo Airlines provides 2 types of product services:
1. On ground services
Product

19. ● Check-in and Booking counters
● Kiosks
● Pick-ups and drops
● CarGo
IndiGo’s Cargo services named CarGO is catching up very fast as they take very good
care of the shipments. They have special packaging for fragile packages which come
under 6E priority. They do not accept perishable shipments like seafood, dairy, plants,
meat. IndiGo Airlines also carries postal mails like speed post, ordinary mail and Army
mail.
Product

20. 1. In Flight services
Product

21. Product
● Meals on Board : No frills
They are separate and have to be paid for. They have a variety of meal options for
customers

22. ● IndiGo Airlines is present in a very competitive airlines segment in India
● Price is what gives IndiGo its edge over other competitors
● IndiGo Airlines provides their customer with low fares and quality on time
services
● There is a fee charged on flight cancellations and rescheduling
● IndiGo’s cost control department makes optimal use of technology to
determine the petrol needed to travel from one place to another
Price

23. Price
40% Aviation turbine fuel
cost out of total
Operating costs
IndiGo gives discount to
senior citizens and
students
It gives seasonal and time
to time discounts on its
mobile app and website
Provides optional
services of meals
which are prepaid

24. ● Some of IndiGo’s seats are chargeable which generally are:
○ Seats with extra leg space
○ Front half window and aisle seat.
Price

25. Place
IndiGo Airlines operates a fleet of 126 Airbus A320 aircraft and since March 2016 it is
adding one Airbus A320NEO every month.
Currently has 15 Airbus A320 NEOs which promise to burn less fuel hence reducing
IndiGo’s operating cost.
IndiGo Airlines is trying to expand its overseas network with more flights to Middle
east and Southeast Asia. IndiGo Airlines seeks to add Sharjah via different routes to its
destinations.
Destinations
40+
Covers the length and breadth of India
It also covers 6 international destinations which
includes Dubai, Singapore, Muscat, Kathmandu, Bangkok
and Doha

26. Promotion
TV commercials, online Ads, billboards/hoardings
Aim: Increase the user base and ropes in new customers

27. Promotion
IndiGo’s Broadway campaign which announced their
airlines going international was done by
Wieden+Kennedy creative agency
It communicated its key offering of reaching
everywhere on time and also announced its
international operations

28. Promotion
IndiGo has worked with agency Wieden + Kennedy building a new, cool airline brand
from scratch
For example, IndiGo’s triangular paid-for ‘Airwich’ boxes feature interesting stories
and fun illustrations to offer passengers something to read when having their meal

29. Promotion
IndiGo Airlines collaborates with banks for its promotions,
IndiGo-ICICI bank promotion where one would get a cashback if one books the
tickets using a ICICI debit or credit card. This gives an insight in the promotion and
marketing strategy of the airline’s marketing mix.

30. IndiGo Airlines has different departments for people to work in:
The engineering department maintains and repairs each aircraft whenever needed
as well as assures quality and regulatory compliance.
People

31. IndiGo Airlines is known for its professional cabin crew which gives wonderful service
experience and is responsible for high quality service.
Since their major responsibility lies in the safety and security of the passengers they
go through rigorous training which lasts for 3 months.
Pilots are responsible for safe and effective operation of the aircraft.
People

32. Process
Tickets for IndiGo airlines can be booked through different methods:
● Online booking through its website
● Through the mobile app
● On call to the IndiGo call center
● Through authorized travel agents.

33. Process
● It has “hold and pay” facilities which allow their customers to hold their
bookings for a brief amount of time.
● IndiGo has a highly professional staff which makes sure that their processes
are smooth and hassle free. It provides special assistance to passenger with
special needs, passengers with infants, Minors, expectant mothers and
medical passengers.
● IndiGo has a customer service where people can call in for their queries and
suggestions. If the flight is delayed and the customer has provided its mobile
number, they are informed in advance about it so that there is no
inconvenience caused.

34. IndiGo’s corporate office is situated in Gurgaon.
IndiGo Airlines has fulfillment centers where customers can book and pay for their
tickets.
IndiGo also has physical presence through their airport counters where people can
book their tickets and enquire about their travelling details.
IndiGo has international reservations offices in Singapore, UAE, New York, Los
Angeles, Chicago, Nepal, Toronto, Kuwait, Oman, etc.
The aircrafts are well maintained and provides comfortable journey to the
passengers.
Physical evidence

35. Short Term:
● Increase number of destinations served
● Offer low prices corporate travel packages
● Offer red-eye flights
Long Term:
● Introduce air cargo service
● Offer flights to unserves destinations ...tie up with FSC
Recommendations

36. THANK YOU