Cover Story King of the pack-Indigo Airlines
Outlook Japanese Yen
Stats Insignificant growth in World Trade
Emerging Country Ukraine
In Focus Blackberry’s Knight: V Prem Watsa
Strategic growth analysis indi go airlinesJatinder Singh
Indigo Airlines is the largest domestic low-cost airline in India with a 38.9% market share. The document analyzes Indigo's growth strategy, noting it has primarily followed an organic "growth by scaling" approach by steadily increasing operations and profitability since 2011 while maintaining margins. The analysis also considers scenarios involving changes in aviation fuel prices and competition. It concludes Indigo is well positioned for continued growth given positive demand forecasts and its fuel efficient upcoming aircraft orders that competitors may find difficult to match.
Low-cost airline IndiGo's parent InterGlobe Aviation has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore.
CASE STUDY ON THE SUCCESSFUL JOURNEY OF INDIGO AIRLINES VARUN KESAVAN
India is the 9th largest aviation market in the world with a size of around US$ 16 billion and is poised to be the 3rd biggest by 2020. India aviation industry promises huge growth potential due to large and growing middle class population, rapid economic growth, higher disposable incomes, rising aspirations of the middle class and overall low penetration levels.
Development of Loyalty Program for Indigo - A Low Cost Indian Airline: Consum...Vishrut Shukla
This document provides a summary of the Indian aviation industry and an analysis of loyalty programs and branding strategies of major airlines in India.
It begins with an overview of the challenges facing the Indian aviation industry, including high costs, debt, and losses incurred by many airlines. It then profiles the major airlines in India and analyzes their branding, including elements, positioning, target audiences, and media communications. Finally, it summarizes the loyalty programs of several airlines, noting that such programs are still nascent in India compared to other countries. In particular, it provides details on the tiered programs of Air India and Jet Airways.
IndiGo was set up in early 2006 by Rahul Bhatia and Rakesh S Gangwal.
IndiGo is an Indian Low-cost airline with only economy class seating.
It’s headquarter is at Gurgaon, India.
It is the largest airline in India in terms of passengers flown with market share of 36.5% as of September 2015.
This airline offers more than 647 daily flights connecting to 38 destinations.
It presently operates a fleet of 97 aircraft belonging to the Airbus A320 family.
In 2014, IndiGo carried 21.4 million passengers in the domestic sector alone.
India’s best on time performance and least flight cancellations.
It is also one of the fastest growing airlines in the world.
This document provides a brand audit of an Indian airline. It summarizes the airline's growth from 2005 when it placed an order for 100 aircraft and planned operations in 2006, to becoming India's largest airline by market share in 2012. Key points include having 100 aircraft currently all from the Airbus A320 family, operating 534 daily flights to 37 destinations including 5 international routes. The brand is characterized as consistently cheeky with clear messaging around being a low fare airline with professional customer service and honest handling of delays. Potential brand extensions into courier and taxi services are proposed.
IndiGo has achieved market leadership in India's aviation industry through its strategy of reliable on-time performance, low fares with no-frills service on Airbus A320 aircraft. It focuses on operational efficiency through techniques like quick turnaround times and digital communication systems. IndiGo promotes its brand through aggressive advertising emphasizing on-time arrival and uses dynamic pricing that increases fares closer to the travel date. The company follows a low-cost strategy and maintains a competitive advantage through cost leadership. However, it faces threats from increasing fuel costs and competition from other airlines.
The Indian aviation industry has grown significantly over the past decade, with passenger traffic growing around 15% annually. However, growth slowed to 0.7% in 2009. The vision is for 280 million passengers by 2020. Private carriers were introduced in the 1990s and led to intense price competition through discounted fares like Apex. Low-cost carriers like Air Deccan further drove down prices. Major carriers have consolidated through mergers and acquisitions, like Jet Airways acquiring Air Sahara and Kingfisher Airlines acquiring a stake in Air Deccan. The industry now faces opportunities for further growth but also threats from economic slowdowns and infrastructure limitations.
Strategic growth analysis indi go airlinesJatinder Singh
Indigo Airlines is the largest domestic low-cost airline in India with a 38.9% market share. The document analyzes Indigo's growth strategy, noting it has primarily followed an organic "growth by scaling" approach by steadily increasing operations and profitability since 2011 while maintaining margins. The analysis also considers scenarios involving changes in aviation fuel prices and competition. It concludes Indigo is well positioned for continued growth given positive demand forecasts and its fuel efficient upcoming aircraft orders that competitors may find difficult to match.
Low-cost airline IndiGo's parent InterGlobe Aviation has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore.
CASE STUDY ON THE SUCCESSFUL JOURNEY OF INDIGO AIRLINES VARUN KESAVAN
India is the 9th largest aviation market in the world with a size of around US$ 16 billion and is poised to be the 3rd biggest by 2020. India aviation industry promises huge growth potential due to large and growing middle class population, rapid economic growth, higher disposable incomes, rising aspirations of the middle class and overall low penetration levels.
Development of Loyalty Program for Indigo - A Low Cost Indian Airline: Consum...Vishrut Shukla
This document provides a summary of the Indian aviation industry and an analysis of loyalty programs and branding strategies of major airlines in India.
It begins with an overview of the challenges facing the Indian aviation industry, including high costs, debt, and losses incurred by many airlines. It then profiles the major airlines in India and analyzes their branding, including elements, positioning, target audiences, and media communications. Finally, it summarizes the loyalty programs of several airlines, noting that such programs are still nascent in India compared to other countries. In particular, it provides details on the tiered programs of Air India and Jet Airways.
IndiGo was set up in early 2006 by Rahul Bhatia and Rakesh S Gangwal.
IndiGo is an Indian Low-cost airline with only economy class seating.
It’s headquarter is at Gurgaon, India.
It is the largest airline in India in terms of passengers flown with market share of 36.5% as of September 2015.
This airline offers more than 647 daily flights connecting to 38 destinations.
It presently operates a fleet of 97 aircraft belonging to the Airbus A320 family.
In 2014, IndiGo carried 21.4 million passengers in the domestic sector alone.
India’s best on time performance and least flight cancellations.
It is also one of the fastest growing airlines in the world.
This document provides a brand audit of an Indian airline. It summarizes the airline's growth from 2005 when it placed an order for 100 aircraft and planned operations in 2006, to becoming India's largest airline by market share in 2012. Key points include having 100 aircraft currently all from the Airbus A320 family, operating 534 daily flights to 37 destinations including 5 international routes. The brand is characterized as consistently cheeky with clear messaging around being a low fare airline with professional customer service and honest handling of delays. Potential brand extensions into courier and taxi services are proposed.
IndiGo has achieved market leadership in India's aviation industry through its strategy of reliable on-time performance, low fares with no-frills service on Airbus A320 aircraft. It focuses on operational efficiency through techniques like quick turnaround times and digital communication systems. IndiGo promotes its brand through aggressive advertising emphasizing on-time arrival and uses dynamic pricing that increases fares closer to the travel date. The company follows a low-cost strategy and maintains a competitive advantage through cost leadership. However, it faces threats from increasing fuel costs and competition from other airlines.
The Indian aviation industry has grown significantly over the past decade, with passenger traffic growing around 15% annually. However, growth slowed to 0.7% in 2009. The vision is for 280 million passengers by 2020. Private carriers were introduced in the 1990s and led to intense price competition through discounted fares like Apex. Low-cost carriers like Air Deccan further drove down prices. Major carriers have consolidated through mergers and acquisitions, like Jet Airways acquiring Air Sahara and Kingfisher Airlines acquiring a stake in Air Deccan. The industry now faces opportunities for further growth but also threats from economic slowdowns and infrastructure limitations.
Indigo Airlines was founded in 2005 and commenced operations in August 2006. It has a 27% market share and its slogan is "Our's Punctuality Your Destination". Key leaders include Rahul Bhatia, Chairman and Aditya Ghosh, MD. Indigo has received several awards including Central Asia's best low-cost airline in 2011 and Best Domestic Low Cost Service by TAAI in 2010. Recent news articles discuss Indigo widening its lead in market share and offering festival season discounts.
IndiGo Airlines is a privately owned low-cost airline based in Gurgaon, India that was founded in 2006. It operates daily flights to 31 cities within India and 5 international destinations. IndiGo has a fleet of Airbus A320 aircraft and focuses on low fares without sacrificing customer service. It has experienced significant growth and profitability in recent years. IndiGo aims to be the most cost-efficient airline by having uniform aircraft and fare types while still providing a professional experience for its customers.
IndiGo has established itself as the market leader in the Indian airline industry over the past 10 years through unique strategic practices. It currently has a 36.5% market share and lacks close competitors. The document provides background information on IndiGo's history, operations, and the Indian airline industry. It covers topics such as market size, growth factors, threats, and Porter's five forces analysis of the competitive environment.
Case Study IndiGo Airbus 250 A320neo aircraft DealIIIT ALLAHABAD
IndiGo, India's largest airline, finalized an order with Airbus for 250 A320neo aircraft in a deal worth $26.55 billion. This sets a record as the largest order for Airbus and will help solidify Airbus' lead over Boeing in the competition between the two companies. The fuel-efficient A320neo aircraft will allow IndiGo to expand its operations and bring low fares to more customers and markets while creating jobs and growth opportunities. The delivery of the new planes will begin in 2018 and take until 2026 to complete.
The aviation industry in India is highly growing and is expected to become the third largest aviation market by 2020. Key reasons for its growth include the expansion of low-cost carriers, modernization of airports, increases in foreign direct investment and advances in information technology. Currently, Indigo has the largest market share at around 40% and the top 4 airlines (Indigo, Jet Airways, Air India, and SpiceJet) combine for over 80% of the market. The government is taking steps like opening more regional routes and smaller airports to further develop the industry.
This document provides an overview and strategic analysis of IndiGo Airlines, India's largest passenger airline. Some key points:
- IndiGo has a 38.5% market share and operates flights to 46 domestic and international destinations with a fleet of 131 aircraft. It is a low-cost airline headquartered in Gurgaon.
- A PESTLE analysis identifies opportunities like growing middle class and GDP but also threats like rising fuel prices. Porter's five forces analysis finds high competitive rivalry and bargaining power of suppliers.
- IndiGo's core competencies include low fares, operating a single aircraft type, quick turnaround times, and its brand. Its strategy focuses on these competencies through
Indigo Airlines has strong brand awareness and a positive brand image in India. A survey was conducted to analyze customer perceptions of the Indigo Airlines brand. Key findings included that over 70% of respondents recognized the Indigo brand image and logo. Affordability was the strongest brand association. Over 75% of respondents said they would recommend Indigo to others due to its convenience and affordable prices. The majority of customers were satisfied with Indigo's service given its prices. In conclusion, Indigo has high customer loyalty and brand resonance due to its reliability and affordable fares.
A report on how Indigo airlines made their strategies and how they compete with such a huge market in airlines. This report is the detail description on their marketing mix, Brand value and Brand equity.
The document provides an analysis of the Indian aviation industry. It discusses key trends including consolidation in the industry, growing passenger numbers, the focus on low prices, and increasing capacity. It also outlines recent government initiatives to modernize airports and allow greater private investment and foreign ownership. The industry is growing rapidly, with passenger traffic increasing by 19.2% in early 2010 compared to the previous year. However, airlines face challenges from high fuel costs and fluctuations in the value of the rupee. Major players in the industry are discussed including Air India, Indigo, and Jet Airways.
IndiGo is India's largest airline by market share, founded in 2006. It operates a low-cost model, focusing on low fares through cost-cutting measures like only one aircraft type and no meals. IndiGo has seen strong growth through adhering to on-time performance and lowest prices. It now operates over 300 daily flights to domestic and international destinations. IndiGo's success is attributed to its efficient low-cost structure and consistent profits in a challenging Indian airline market.
The document summarizes the growth of the Indian commercial aviation industry since liberalization in the 1990s. It describes the emergence of low-cost carriers like Air Deccan in 2003 that drove fares lower and increased passenger traffic. This led other carriers to also lower fares. As costs rose and competition increased, airlines began consolidating through acquisitions, like Jet Airways acquiring Sahara and Kingfisher acquiring Air Deccan, to improve efficiency. The competitive landscape and strategies used by different carriers in India are also examined.
Mapping the success of indigo airlines.Parth Singh
IndiGo is India's largest airline by market share. A recent study found that IndiGo's profit for the first quarter of the current fiscal year was Rs. 106 crore. IndiGo operates 359 daily flights across 27 domestic and 5 international destinations using a fleet of 58 Airbus A320 aircraft. The airline has experienced strong revenue growth and profits in recent years.
Another area where Indigo can evaluate diversification is working out value addition for its passengers by offering bundled app driven taxi services for airport pick up and drop. Rather than starting its own app based taxi service, it should tie up with existing players like Uber and Ola. Working on a revenue sharing model rather than owning a subsidiary will enable roll out of highly value driven service for its passengers without any expenditure and also increase its bottom line.
This document is a term paper on strategic management strategies followed by low-cost airline IndiGo. It provides an executive summary and then analyzes IndiGo's external and internal environments. For external analysis, it uses PESTEL and Porter's Five Forces frameworks to examine political, economic, social, technological, environmental, and legal factors impacting the aviation industry. It finds the industry attractive but with threats from new entrants, supplier bargaining power, and competition. The internal analysis covers IndiGo's market share, resources, value chain, and SWOT. It identifies strengths in differentiation and resources but also weaknesses. The paper concludes with strategic alternatives for IndiGo to sustain its competitive advantage long-term.
Strategic Analysis of Indian Aviation Industry and IndiGo AirlinesAru Mangla
The document provides information on the global and Indian aviation industry. It discusses key statistics like the number of airlines, aircrafts, passengers carried globally and in India in recent years. It highlights factors driving growth in emerging markets like Asia and the Middle East. For the Indian aviation industry, it mentions growth in passenger traffic and plans for airport expansion and investments. It also discusses opportunities and challenges for the industry through tools like PESTEL, Porter's 5 forces, SWOT and TOWS analyses and provides an overview of IndiGo, the largest airline in India.
IndiGo Airlines is India's largest domestic low-cost airline with a 38.9% market share. It was founded in 2006 and has grown its fleet to 109 aircraft. IndiGo maintains high operational reliability and award-winning customer service. The document outlines IndiGo's competitors including Jet Airways, Air India, SpiceJet, and Go Air. It analyzes IndiGo's strengths such as operational excellence, low costs, and an order of 250 fuel-efficient Airbus 320 Neo aircraft. The strategy proposed in the document is to use a "war room" approach with storyboards to visualize strategic options that help IndiGo achieve its mission of providing low fares and on-time performance.
1) Indigo Airlines is the largest airline in India in terms of market share at 39.4% as of 2017.
2) It has grown rapidly since starting operations in 2006 and becoming profitable within its first 5 years.
3) While Indigo's financial results declined in 2016-2017 compared to the previous year, it remains the most profitable low-cost carrier in India and one of the largest in Asia.
This case study analyzes the strategy and success of IndiGo, India's largest domestic airline by market share. Some key points:
1) IndiGo has grown rapidly since its founding in 2006 to become India's fastest growing and most profitable domestic airline, overtaking competitors through its low-cost business model.
2) IndiGo focuses on affordable fares, on-time performance, and hassle-free service to attract customers. This strategy has helped it gain a 21.9% domestic market share.
3) While facing challenges like high fuel costs and competition, IndiGo has opportunities to expand into new markets like freight and international routes. Its continued growth relies on maintaining its low
The Indian aviation industry is one of the fastest growing, at 18% annually. It has evolved from early commercial flights in 1911 to major international alliances today that account for over 60% of global traffic. The industry is an oligopoly dominated by a small number of large firms like IndiGo and Jet Airways. IndiGo has emerged as the largest carrier by market share through efficient, low-cost operations and low fares. Kingfisher Airlines was an early entrant in 2005 but struggled with high ticket prices and other issues. Revenue management and price discrimination are important strategies used by carriers.
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
The document discusses the economic rise of Africa over the past decade. Some key points:
1) South Africa joined the BRIC nations in 2010, forming BRICS to represent the growing economic power of Africa.
2) Africa's GDP has grown significantly in the past decade, with GDP projected to increase to 5.3% in 2011. Foreign direct investment in Africa has also surged.
3) Asian countries like China and India have become major investors in Africa, investing over $11 billion in 2009, and using countries like Mauritius as an investment hub for the continent.
4) Africa has large untapped resources and a growing consumer base that represents opportunities for continued economic growth if infrastructure
Indigo Airlines was founded in 2005 and commenced operations in August 2006. It has a 27% market share and its slogan is "Our's Punctuality Your Destination". Key leaders include Rahul Bhatia, Chairman and Aditya Ghosh, MD. Indigo has received several awards including Central Asia's best low-cost airline in 2011 and Best Domestic Low Cost Service by TAAI in 2010. Recent news articles discuss Indigo widening its lead in market share and offering festival season discounts.
IndiGo Airlines is a privately owned low-cost airline based in Gurgaon, India that was founded in 2006. It operates daily flights to 31 cities within India and 5 international destinations. IndiGo has a fleet of Airbus A320 aircraft and focuses on low fares without sacrificing customer service. It has experienced significant growth and profitability in recent years. IndiGo aims to be the most cost-efficient airline by having uniform aircraft and fare types while still providing a professional experience for its customers.
IndiGo has established itself as the market leader in the Indian airline industry over the past 10 years through unique strategic practices. It currently has a 36.5% market share and lacks close competitors. The document provides background information on IndiGo's history, operations, and the Indian airline industry. It covers topics such as market size, growth factors, threats, and Porter's five forces analysis of the competitive environment.
Case Study IndiGo Airbus 250 A320neo aircraft DealIIIT ALLAHABAD
IndiGo, India's largest airline, finalized an order with Airbus for 250 A320neo aircraft in a deal worth $26.55 billion. This sets a record as the largest order for Airbus and will help solidify Airbus' lead over Boeing in the competition between the two companies. The fuel-efficient A320neo aircraft will allow IndiGo to expand its operations and bring low fares to more customers and markets while creating jobs and growth opportunities. The delivery of the new planes will begin in 2018 and take until 2026 to complete.
The aviation industry in India is highly growing and is expected to become the third largest aviation market by 2020. Key reasons for its growth include the expansion of low-cost carriers, modernization of airports, increases in foreign direct investment and advances in information technology. Currently, Indigo has the largest market share at around 40% and the top 4 airlines (Indigo, Jet Airways, Air India, and SpiceJet) combine for over 80% of the market. The government is taking steps like opening more regional routes and smaller airports to further develop the industry.
This document provides an overview and strategic analysis of IndiGo Airlines, India's largest passenger airline. Some key points:
- IndiGo has a 38.5% market share and operates flights to 46 domestic and international destinations with a fleet of 131 aircraft. It is a low-cost airline headquartered in Gurgaon.
- A PESTLE analysis identifies opportunities like growing middle class and GDP but also threats like rising fuel prices. Porter's five forces analysis finds high competitive rivalry and bargaining power of suppliers.
- IndiGo's core competencies include low fares, operating a single aircraft type, quick turnaround times, and its brand. Its strategy focuses on these competencies through
Indigo Airlines has strong brand awareness and a positive brand image in India. A survey was conducted to analyze customer perceptions of the Indigo Airlines brand. Key findings included that over 70% of respondents recognized the Indigo brand image and logo. Affordability was the strongest brand association. Over 75% of respondents said they would recommend Indigo to others due to its convenience and affordable prices. The majority of customers were satisfied with Indigo's service given its prices. In conclusion, Indigo has high customer loyalty and brand resonance due to its reliability and affordable fares.
A report on how Indigo airlines made their strategies and how they compete with such a huge market in airlines. This report is the detail description on their marketing mix, Brand value and Brand equity.
The document provides an analysis of the Indian aviation industry. It discusses key trends including consolidation in the industry, growing passenger numbers, the focus on low prices, and increasing capacity. It also outlines recent government initiatives to modernize airports and allow greater private investment and foreign ownership. The industry is growing rapidly, with passenger traffic increasing by 19.2% in early 2010 compared to the previous year. However, airlines face challenges from high fuel costs and fluctuations in the value of the rupee. Major players in the industry are discussed including Air India, Indigo, and Jet Airways.
IndiGo is India's largest airline by market share, founded in 2006. It operates a low-cost model, focusing on low fares through cost-cutting measures like only one aircraft type and no meals. IndiGo has seen strong growth through adhering to on-time performance and lowest prices. It now operates over 300 daily flights to domestic and international destinations. IndiGo's success is attributed to its efficient low-cost structure and consistent profits in a challenging Indian airline market.
The document summarizes the growth of the Indian commercial aviation industry since liberalization in the 1990s. It describes the emergence of low-cost carriers like Air Deccan in 2003 that drove fares lower and increased passenger traffic. This led other carriers to also lower fares. As costs rose and competition increased, airlines began consolidating through acquisitions, like Jet Airways acquiring Sahara and Kingfisher acquiring Air Deccan, to improve efficiency. The competitive landscape and strategies used by different carriers in India are also examined.
Mapping the success of indigo airlines.Parth Singh
IndiGo is India's largest airline by market share. A recent study found that IndiGo's profit for the first quarter of the current fiscal year was Rs. 106 crore. IndiGo operates 359 daily flights across 27 domestic and 5 international destinations using a fleet of 58 Airbus A320 aircraft. The airline has experienced strong revenue growth and profits in recent years.
Another area where Indigo can evaluate diversification is working out value addition for its passengers by offering bundled app driven taxi services for airport pick up and drop. Rather than starting its own app based taxi service, it should tie up with existing players like Uber and Ola. Working on a revenue sharing model rather than owning a subsidiary will enable roll out of highly value driven service for its passengers without any expenditure and also increase its bottom line.
This document is a term paper on strategic management strategies followed by low-cost airline IndiGo. It provides an executive summary and then analyzes IndiGo's external and internal environments. For external analysis, it uses PESTEL and Porter's Five Forces frameworks to examine political, economic, social, technological, environmental, and legal factors impacting the aviation industry. It finds the industry attractive but with threats from new entrants, supplier bargaining power, and competition. The internal analysis covers IndiGo's market share, resources, value chain, and SWOT. It identifies strengths in differentiation and resources but also weaknesses. The paper concludes with strategic alternatives for IndiGo to sustain its competitive advantage long-term.
Strategic Analysis of Indian Aviation Industry and IndiGo AirlinesAru Mangla
The document provides information on the global and Indian aviation industry. It discusses key statistics like the number of airlines, aircrafts, passengers carried globally and in India in recent years. It highlights factors driving growth in emerging markets like Asia and the Middle East. For the Indian aviation industry, it mentions growth in passenger traffic and plans for airport expansion and investments. It also discusses opportunities and challenges for the industry through tools like PESTEL, Porter's 5 forces, SWOT and TOWS analyses and provides an overview of IndiGo, the largest airline in India.
IndiGo Airlines is India's largest domestic low-cost airline with a 38.9% market share. It was founded in 2006 and has grown its fleet to 109 aircraft. IndiGo maintains high operational reliability and award-winning customer service. The document outlines IndiGo's competitors including Jet Airways, Air India, SpiceJet, and Go Air. It analyzes IndiGo's strengths such as operational excellence, low costs, and an order of 250 fuel-efficient Airbus 320 Neo aircraft. The strategy proposed in the document is to use a "war room" approach with storyboards to visualize strategic options that help IndiGo achieve its mission of providing low fares and on-time performance.
1) Indigo Airlines is the largest airline in India in terms of market share at 39.4% as of 2017.
2) It has grown rapidly since starting operations in 2006 and becoming profitable within its first 5 years.
3) While Indigo's financial results declined in 2016-2017 compared to the previous year, it remains the most profitable low-cost carrier in India and one of the largest in Asia.
This case study analyzes the strategy and success of IndiGo, India's largest domestic airline by market share. Some key points:
1) IndiGo has grown rapidly since its founding in 2006 to become India's fastest growing and most profitable domestic airline, overtaking competitors through its low-cost business model.
2) IndiGo focuses on affordable fares, on-time performance, and hassle-free service to attract customers. This strategy has helped it gain a 21.9% domestic market share.
3) While facing challenges like high fuel costs and competition, IndiGo has opportunities to expand into new markets like freight and international routes. Its continued growth relies on maintaining its low
The Indian aviation industry is one of the fastest growing, at 18% annually. It has evolved from early commercial flights in 1911 to major international alliances today that account for over 60% of global traffic. The industry is an oligopoly dominated by a small number of large firms like IndiGo and Jet Airways. IndiGo has emerged as the largest carrier by market share through efficient, low-cost operations and low fares. Kingfisher Airlines was an early entrant in 2005 but struggled with high ticket prices and other issues. Revenue management and price discrimination are important strategies used by carriers.
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
The document discusses the economic rise of Africa over the past decade. Some key points:
1) South Africa joined the BRIC nations in 2010, forming BRICS to represent the growing economic power of Africa.
2) Africa's GDP has grown significantly in the past decade, with GDP projected to increase to 5.3% in 2011. Foreign direct investment in Africa has also surged.
3) Asian countries like China and India have become major investors in Africa, investing over $11 billion in 2009, and using countries like Mauritius as an investment hub for the continent.
4) Africa has large untapped resources and a growing consumer base that represents opportunities for continued economic growth if infrastructure
Investeurs Consulting is a financial services firm that was founded in 1994 in India. It started with trade finance services and has since expanded to offer advisory, consultancy, and deals with various national and private banks. Over the years, Investeurs has developed a family-like culture where each member plays an important role in driving the company's growth. The founders credit the company's success to its clients and associates. Entrepreneurship is growing in India as more youth start businesses instead of seeking jobs, often beginning small and growing over time.
Cloud computing offers on-demand access to computing resources and applications over the internet. While it provides benefits like scalability, cost savings, and mobility, there are also security and control concerns to address. Enterprises are wary of losing control over sensitive data and relying on service providers to ensure its safety. Overall, cloud computing presents opportunities but also challenges around manageability, security, and governance that must be overcome for widespread adoption.
Cover Story Indian Entrepreneurs Are More Measured Than The Chinese
Corporate Credit Bank Guarantee
Business Trivia Vadilal- A Oldest brand of India
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
LinkedIn's announcement of a $175 million IPO has reignited the debate around whether hugely successful internet companies should go public. LinkedIn is one of the largest professional networking sites and is poised for a blockbuster IPO after tripling its revenue between 2007-2009. While LinkedIn would not be the first internet company to IPO recently, its size and success in social networking means its IPO could have significant ripple effects on other major internet companies considering going public. However, there are also risks to consider for internet companies in taking the plunge to go public, including loss of focus, increased scrutiny, and potential loss of control.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
The document discusses India's proposed National Food Security Bill. It aims to provide subsidized food grains to 75% of rural and 50% of urban populations, including priority households below the poverty line. However, the article notes that past attempts at ensuring food security through centralized control and subsidies have failed and driven up prices instead of reducing hunger. It questions if this new bill will actually reduce malnutrition and hunger given the large costs involved and challenges of effective implementation and targeting of benefits.
Cover Story Outlook Of Non- Ferrous Metal
Corporate Credit FCNR(B) Loans
Business Trivia First self-made female millionaire
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
This document provides an overview of gold investments and gold prices in April 2011. It discusses the advantages of investing in gold, including capital appreciation to hedge against inflation, low risk due to gold's resistance to deflation, and convenience of gold ETFs. The document also lists different types of gold investments such as gold bullion, coins, certificates, futures/options, mining stocks, jewelry, and ETFs. Gold is portrayed as a reliable store of value when currency supplies are expanding too rapidly.
Cover Story Is India's food security bill the magic pill?
Outlook Euro
Stats Currency Composition of Foreign Exchange Reserve
Emerging Country Philippines
In Focus US Becoming a Surveillance State. Right or Wrong?
- The political unrest in Egypt has led to rising oil prices, negatively impacting India through higher import costs and uncertainty around oil supplies. Egypt controls the Suez Canal and Sumed pipeline through which a significant amount of oil is transported.
- India has investments in Egypt's oil and gas sectors that could be disrupted if the instability continues. Several Indian companies have already shut down Egyptian operations.
- Higher oil prices pose inflationary risks for India's economy. The outcome in Egypt will impact global energy supplies, commodity prices, and financial market stability.
The document discusses talent retention challenges faced by companies. It notes that the cost of replacing employees can be 4-5 times their salary due to training costs. Two out of three employees at large companies are looking for new jobs. Employers need tailored strategies to satisfy different employee groups. The cover story argues that companies should shift their focus from just acquiring talent to also retaining current employees through career development opportunities to prevent valuable staff from leaving. HR perspectives may need to change from solely focusing on talent acquisition to implementing retention strategies.
Cover Story What Flipkart can learn from TCS
Corporate Credit Forfaiting
Business Trivia Bharatiya Reserve Bank Note Mudran Private Limited
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
The document summarizes the economic impacts of the 2011 earthquake and tsunami in Japan. It discusses the estimated costs of $122-235 billion in damages, loss of over 15,000 lives, and shutdown of 11 nuclear reactors reducing electricity production. It notes the effects on global supply chains and auto industry production suspensions. Rebuilding efforts could lift Japan's economy in the short-term but national debt is expected to increase, slowing recovery. Inflation risks and deindustrialization trends may accelerate due to the disaster.
The Tata group withdrew its application for a banking license in India, deciding that its current financial services model better supports its domestic and overseas strategy. This leaves 25 other applicants, including companies from the Aditya Birla, Bajaj, and Reliance groups, still in the running for new private banking licenses that the Reserve Bank of India is expected to issue. Some analysts believe the high capital requirements and regulations around priority sector lending deterred some large corporate groups from applying for a banking license.
This document provides background information on IndiGo Airlines, including its history, expansion both domestically and internationally, and business model. It was founded in 2006 and focuses on low costs through strategies like a single aircraft type, no frills, and direct ticket sales. By 2012, it had become the largest airline in India in terms of market share through consistent emphasis on punctuality and low operating expenses.
IndiGo Airlines is an Indian budget airline that aims to be the leader in low-cost air travel by offering affordable fares, on-time performance, and hassle-free travel. It has the largest market share in India at 36.1% as of 2014. IndiGo segments its market as cost-conscious passengers, targeting middle and lower middle class customers with its positioning as a no-frills airline. It offers core air transportation along with supplementary services like food and frequent flyer programs. IndiGo maintains low prices through measures like outsourcing and operating a homogeneous fleet. It promotes through online booking, partnerships, and advertising while focusing on maintaining low costs.
Indigo airlines is India's largest airline by market share. It focuses on providing affordable air travel to lower middle class and middle class customers. Indigo has achieved success through strategies like operating a single type of aircraft to reduce costs, maintaining high on-time performance and passenger load factors, and offering no-frills service at low fares. It aims to continue expanding its network of destinations and increasing market share to solidify its position as the leading low-cost carrier in India.
IndiGo is a private, low-cost airline based in India that was founded in 2006. It has grown rapidly to become the largest airline in India by market share. IndiGo focuses on operational efficiencies through strategies like only operating new Airbus A320 aircraft and offering low, consistent fares. This focus on a low-cost model has helped IndiGo become profitable for five consecutive years while other Indian airlines struggled. IndiGo's adherence to its low-cost strategies and emphasis on punctuality have been key to its success in the Indian airline industry.
IndiGo Airlines is India's largest airline by market share. It is a privately owned low-cost carrier based in Gurgaon, Haryana, India that started operations in 2006. IndiGo focuses on keeping costs low by only operating Airbus A320 aircraft and not providing meals or entertainment. This strategy has helped IndiGo become profitable when other Indian airlines struggle. It now operates over 300 daily flights to 33 domestic and international destinations.
IndiGo has adopted several cost reduction strategies to become one of the most profitable airlines in India. It operates a single type of aircraft (Airbus A320) which allows for streamlined training, maintenance and parts inventory. IndiGo also offers no-frills economy flights without meals or entertainment to reduce costs. Additionally, IndiGo maintains a young average fleet age of 4 years through bulk purchases and short-term leasing to benefit from fuel efficiency and avoid lengthy maintenance checks required for older aircraft. These strategies have helped IndiGo achieve strong financial performance with large profits in recent years.
This document compares IndiGo and AirAsia, two low-cost airlines in India. It discusses their founders and growth strategies. IndiGo, founded by Rahul Bhatia, has become the largest airline in India through innovations like efficient operations and focusing on lower costs. AirAsia, founded by Tony Fernandes, has also seen success by focusing on ancillary revenues through fees and using aggressive marketing. Both airlines have helped revolutionize India's aviation industry through low cost models.
IndiGo has become the largest and most profitable airline in India within a decade of operations through effective marketing strategies. This document analyzes IndiGo's strategies, including how it successfully launched in a struggling industry by focusing on low costs and punctuality. It dominated market share by positioning as the low-cost leader and marketing its low prices and on-time performance. IndiGo gained customers through value-for-money experiences on its fuel-efficient fleet and consistent profits. The analysis seeks to understand IndiGo's strategies and provide recommendations to sustain its leadership position amid changing industry conditions.
The 2nd issue of the 1st volume of Magma. The issue covers Yum! Food’s exponential growth, Flicking the middle finger, Samsung Galaxy Note arrives in the USA, Tata Starbucks arrives in India. The secret of flying high, Exploiting Emotions, The first P: Product.
The document discusses the Indian civil aviation industry and recent foreign direct investment reforms. It provides an overview of the industry, outlines recent reforms, discusses foreign investments since the liberalization of FDI rules, and presents the outlook for the industry. Key points include India liberalizing FDI rules to allow 49% foreign airline equity, Etihad acquiring a 24% stake in Jet Airways, and Air Asia and Singapore Airlines announcing joint venture plans with Indian partners. The reforms have opened new opportunities for domestic airlines to raise capital and strategic partnerships.
IndiGo Airlines is India's largest and most profitable airline, having made profits for five consecutive years while its competitors Jet and Spicejet have lost money. IndiGo utilizes several strategies to keep costs low and maximize profits, including operating a homogeneous fleet of Airbus A320 aircraft, focusing on short-haul domestic and international routes, quick turnaround times, and online ticket booking. These strategies have helped IndiGo achieve a 31.6% domestic market share in India and become the only profitable major airline in FY2015.
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.
IndiGo is India's largest airline by market share, founded in 2006 by Rahul Bhatia and Rakesh Gangwal. It operates as a low-cost carrier with over 100 Airbus aircraft serving 41 destinations. IndiGo utilizes various cost-saving strategies like bulk purchases of a single aircraft type, sale-and-leaseback financing, and efficient turnaround times. These strategies have allowed IndiGo to become the most profitable airline in India and the second largest low-cost carrier in Asia.
IndiGo was founded in 2006 by Rahul Bhatia and Rakesh Gangwal. It began operations in 2006 with one aircraft and has grown to become India's largest airline by market share as of 2017, operating a fleet of 144 aircraft to 48 destinations. IndiGo focuses on providing low fares, on-time flights, and a courteous travel experience. It has expanded rapidly through large aircraft orders from Airbus and has experienced consistent profitability.
IndiGo will complete 10 years of its operations this year in August. It is the country's largest airline with a market share of
38.5 % as of May 2016. For more information click here: http://limeonline.org/presentation/
The document provides information about IndiGo Airlines, the largest airline in India. It discusses IndiGo's strategies for success, including managing to close a deal for 100 aircraft at a low down payment and bulk purchase of Airbus A320 aircraft. It also discusses IndiGo's operations with only economy class and no meals or entertainment provided. IndiGo saves fuel through software optimization, Airbus A320 NEO aircraft, fuel hedging, and engine shutdown during taxiing. The document also lists IndiGo's domestic and international destinations.
IndiGo is the largest airline in India with 27% of the domestic market share. It operates as a low-cost carrier with 180-seat aircraft and serves 22 cities within India with 188 daily flights. Key aspects include being a pure low-cost carrier, offering only economy seats and selling food on board. It has grown rapidly to become the largest domestic airline in India.
Cover Story Why corporate houses keen to set up universities
Corporate Credit Packing Credit in Foreign Currency
Business Trivia BRICS- Mini IMF
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story Base Metal Outlook (CY 2014)
Corporate Credit-Buyer’s Credit
Business Trivia -Bombay Stock Exchange
Visual Facts-Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story A shaky vision for Financial Inclusion
Outlook US Dollar
Stats Share of Public sector in capital formation
Emerging Country Peru
In Focus USA is second to China in monetary stimulus
Cover Story End to QE: Not a great idea for Asia?
Outlook Chinese Yuan
Stats India Gloom on GDP, Fiscal Deficit and Mining and Manufacturing output
Emerging Country Nigeria
In Focus Facts on Food Security Bill
Raghuram Rajan has been appointed as the next Governor of the Reserve Bank of India (RBI), replacing Duvuri Subbarao whose term ends in September 2013. Rajan faces several challenges in his new role, including improving RBI's relationship with the finance ministry, strengthening the rupee, replenishing foreign exchange reserves, keeping inflation in check, and overseeing the licensing of new banks in India during a period of economic uncertainty. As RBI Governor, Rajan will have to balance various economic goals and guide monetary policy prudently through the difficult economic conditions.
Cover Story Is the irony of raising FDI limit
Outlook Coal
Stats Restructuring profile of PSU Banks
Emerging Country Hungary
In Focus E-Commerce Industry in India
- Ranbaxy Laboratories Ltd, an Indian generic drug maker, pleaded guilty to felony charges related to drug safety and agreed to pay $500 million in fines to the US Department of Justice. This is the largest settlement ever with a generic drug maker over drug safety issues.
- The settlement is due to drugs manufactured at two Indian plants not meeting safety standards and false statements being made. The civil settlement is for $350 million for false claims submitted to US healthcare programs from 2003-2010.
- The case raises questions about quality standards of drugs manufactured in India and could damage the reputation of the Indian pharmaceutical industry. It may make it more difficult for Indian drug companies to secure contracts in the US market.
Cover Story Narayana Murthy’s Second Innings
Outlook US Dollar
Stats Major Global Currencies Recent Movement
Emerging Country South Africa
In Focus Target Gold, Again
Back in Limelight-“Saradha chit fund scam brings in focus deficiencies in Financial sector”
Steel Outlook
Moonsoon trend in India
Emerging Country-Turkey
Should India issue Sovergin Bonds
The document discusses the bailout deal reached for Cyprus to avoid exiting the eurozone. Key points:
- Cyprus agreed to restructure its second largest bank, Laiki, dissolving it and transferring guaranteed deposits to the largest bank, Bank of Cyprus, which also faces major restructuring.
- Large depositors in both banks face significant losses of up to 40% of their money. The banking sector will shrink greatly and thousands of jobs will be lost.
- Capital controls will be imposed temporarily on bank withdrawals and cash movements.
- However, Cyprus' debt levels remain very high and its economy will shrink drastically, so it may require further bailouts.
- The deal sets a precedent that worries
The document discusses several economic news items from emerging markets:
- Russia's central bank held interest rates steady and signaled a slightly more dovish tone going forward as a new central bank head is nominated.
- Indonesia's state-owned coal miner is seeking to acquire stakes in other coal mining sites to expand its operations.
- The Philippines reported that its consolidated public sector deficit reached $27.5 billion in the third quarter of 2012.
- South Africa reported a 3.9% year-over-year increase in manufacturing production for January 2013.
- Brazil's main oil producing states are reviewing their budgets and preparing for potential revenue cuts after Congress overturned a presidential veto related to oil royalty redistribution.
The document discusses the Union Budget of India for 2013-2014 that was presented by the Finance Minister P. Chidambaram. Some key points:
- The budget aimed to narrow the fiscal deficit to 4.8% of GDP while raising spending through higher revenues. However, the 2014 shortfall target of 5% may be optimistic.
- Investors were disappointed by the higher-than-expected net borrowing target of Rs. 17,000 crore as it hit market sentiment and the rupee.
- The three month forecast for the USD/INR exchange rate is 55, with risks of further depreciation beyond 55 in the near term. Longer term, the rate is expected to reach
This document summarizes news and analysis from the December 2011 issue of Investeurs Chronicles. It discusses the fall of India's microfinance industry from grace as Vikram Akula stepped down as chairman of SKS Microfinance. It notes that while Akula helped establish microfinance in India, his profit-driven model has been criticized for prioritizing profits over helping the poor. The industry grew rapidly from 2005-2010 but high interest rates of 30-50% drew controversy. The summary provides an overview of developments in the microfinance industry and perspectives on Akula's role and legacy.
This document discusses volatility in commodity prices in recent years. It notes that after slumping during the 2008 financial crisis, commodity prices have rebounded strongly since late 2011, with agricultural, energy, and industrial commodity prices surging to pre-crisis or record high levels. There is talk of a sustained commodity price super-cycle driven by rising demand and constrained supply. Brent crude, copper, and UN food prices all reached new highs in early 2012, suggesting commodity prices may remain high and volatile going forward as the global economic recovery continues. However, some uncertainty remains around whether this volatility will persist long-term.
Leadership is a choice. Pure and simple!
How many of us recognize and appreciate this simple fact?
Late Steve Jobs was one such visionary leader who not only personified but also personalized leadership in the present times.
At home, we have several such examples of vision, passion and leadership. Founders of Investeurs belong to this league.
In our current edition we aspire to be inspired by life and times of Steve Jobs- his vision, charisma and passion towards his work.
It is also an expression of gratitude towards the entrepreneurial and leadership skills of people at the helm of Investeurs and others like them who strive to create a dent in universe!
How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...beulahfernandes8
The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
2. Cover
Story
Right now, there is just one player who is scoring all the goals; the only airline making profits even as competitors flounder with frozen accounts, grounded
planes, and massive losses. That player is IndiGo. Consider these numbers.
IndiGo's profits soar 6-fold to Rs 787 crore despite a spike in fuel prices, weak rupee. This is the first time IndiGo, India's largest airline by passengers carried,
has chosen to go public with its annual results. The airline doesn't need to do so as it's not listed. IndiGo reported a spectacular six-fold jump in net profit to 787
crore in the year to March, seemingly unaffected by a spike in fuel prices and a weak rupee that decimated the earnings of rivals. Low-fare competitor Spice Jet
posted a nearly 10% drop in profit and Jet Airways IndiGo's closest rival in terms of passengers carried, reported a loss of Rs 355 crore in the three months
ended June. Government-run Air India's total losses have increased to around Rs 20,000 crore. Privately-held GoAir recorded aRs 60-80 crore loss in 2012-13,
according to an estimate in May by aviation consultancy CAPA. GoAir is also unlisted.
This is the low-fare airline’s fifth consecutive profitable year. IndiGo’s run of profitability comes as India’s airline industry is estimated to have lost a combined
$1.95 billion (around Rs.12,226crore today) in 2012-13 on a revenue of $9.5 billion, according to consulting firm Centre for Asia Pacific Aviation, or Capa. IndiGo
continues to outperform on every single benchmark—customer ratings are high, service delivery is consistent with quality maintained, operating and financial
measurements are best in the industry.
It doesn’t take long to reach the one obvious conclusion. There is something that is making IndiGo tick, and tick well. And just what that is, is the story that is
fascinating the nation.
King of the pack- Indigo Airlines
3. Cover
Story
IndiGo was set up in early 2006 by Rakesh Gangwal and Rahul Bhatia of InterGlobe Enterprises, with InterGlobe as the parent company holding 51.12 per cent of
the stake while 48 per cent is held by Rakesh Gangwal’s Caelum Investments, a Virginia, US-based Company. Low cost does not mean low quality is something
Aditya Ghosh, President, IndiGo, has been heard saying repeatedly. And it’s a lesson that his low-cost carrier has obviously learnt well.
Staying focused
Many reasons are trotted out for the success but there are some moves that IndiGo has played just right. One of the chief reasons for IndiGo’s success is its sharp
focus — on-time performance, clean, neat aircraft, and good service.
See this early example. Even before starting operations in mid-2006, Indigo placed a firm order for 100 Airbus A320 aircraft in June 2005, an order that gave it a
huge pricing advantage. It followed this up by adopting, for the first time in India, the sale and lease-back arrangement, under which it sells planes back to a
leasing company, keeping its balance sheet light and its fleet younger. The airline then acquired parking lots in Delhi and Mumbai and, by the time the first Indigo
flight was announced, it had already scheduled the first 20 aircraft.
IndiGo started life as a low-cost carrier and has stayed there firmly, sticking to its business model even in the worst economic crises, a move that has paid off
brilliantly. Paid-for on-board meals, a single flying class with no-frills service, high aircraft utilization, and optimal use of space (150 seats to the 190 that a full-
fare airline carries) are just some of the cost control methods that IndiGo uses.
Aircraft utilization is maximized by cutting turnaround time, which also reduces fuel burning. With oil prices rising sharply, every bit helps. By not serving hot
meals on board, IndiGo carries no heavy equipment and cutlery, thus lightening the aircraft and allowing for less fuel burn. Besides, the airline also employs far
fewer people, with one of the industry’s leanest work forces.
Back to basics
With a clean business plan, the airline then concentrated on the basics — on-time performance, clean aircraft, and good onboard service. In India, where airlines
compete with the much cheaper options of rail and road travel, it is usually the time advantage that attracts passengers to planes, and a four-hour delay for a 55
minute flight can be disastrous. IndiGo has carved out a reputation for flawless “On Time Performance”, earning itself some serious brownie points and an average
on-time record of an amazing 90 per cent.
How does it do it? By using a technology called ACARS (Aircraft Communications Addressing And Reporting System). In layman’s language, this means constant
radio and satellite communication between aircraft and ground stations. Every plane in the fleet is fitted with ACARS. Before every departure, an automatic
message is triggered from aircraft to control centre and the departure time recorded immediately. Similarly, the moment the flight lands an automatic message is
triggered from aircraft to control centre. These timings are recorded “real time” and without human intervention.
4. Flyaway profits
Indigo is in an enviable position, slowly but surely outclassing the biggies in the business, filling the vacuum created by cancelled flights and rising fares. Given
that India is one of the most underpenetrated airline markets in the world, IndiGo’s potential for growth is huge. Already, its flights are the most utilized, with an
average load factor of over 80 per cent, sure sign of its profitability.
One of the major reasons here is using just one type of aircraft, which has its benefits, and Indigo has chosen to stick to the world’s best-selling single-aisle
aircraft, the Airbus A320. The A320neo, available from 2016, incorporates a more efficient engine and large wing-tip devices called Sharklets that deliver
significant fuel savings of up to 15 per cent, which represents savings of over 400,000 US Gal of fuel and up to 3,600 tonnes of CO 2 annually per aircraft. In
addition, the A320neo provides a double-digit reduction in NOx emissions and reduced engine noise.
Many observers say that a major portion of the airlines’ profitability is attributed to the leaseback model adopted by the airlines.
IndiGo had ordered 100 Airbus A320 aircraft in 2005 from Airbus SAS. The airline adds about a dozen aircraft each year to its fleet with this order. But many of
these aircraft are sold to the lessors and leased back into the IndiGo fleet. The funds generated by this, which is typically a few million dollars more than the price
the airline would have paid for the aircraft in 2005 for a bulk order, is also booked into the airline’s profits, according to analysts.
With the government allowing more overseas investment in Indian airlines, IndiGo faces competition from foreign airlines that could bring in higher operating
standards.
While Jet Airways has agreed to sell a 24% stake to Abu Dhabi-based Etihad Airways PJSC, Tata Sons Ltd is entering into a joint venture with Malaysia’s
AirAsiaBhd to launch a domestic low-fare airline as well as teaming up with Singapore Airlines Ltd for a full-service airline.
It’s also no secret that IndiGo has faced its share of setbacks, with the DGCA’s January 2012 report of a violation of mandatory safety norms.
While it’s impossible to get everything right, IndiGo seems to be coping quite well, managing to stay in the air in an industry that is looking quite dismally
grounded at the moment. The low-cost carrier might not offer any frequent flyer programmes, but it has a huge share of loyal customers who swear by its
performance. And if it can weather the gathering storm of fuel prices, high taxes, airport fees and the weakening rupee, it should be able to leave competition
way behind its vapour trail.
In India as elsewhere, you look at and complain about fuel cost, red-tape, the macroeconomic drivers. All these factors are “outside our control”. But there are
always some factors within management control. A good management can make a difference!
5. The Japanese yen (JPY) was relatively stable in August 2013; however, it has lost 20% versus the USD over the past 12 months. The Japanese Yen lost ground
quickly after the Federal Reserve (on September 18, 2013) surprised investors by keeping QE3 in place at its current $85B/month pace.
Emerging market and commodity currencies surged to the Yen’s detriment. Perhaps for good reason, too: Japanese yields plummeted to their lowest level since
early-May 2013, transforming the Yen not as a vehicle to benefit as a safe haven but as a funding currency amid a swell in central bank-fueled exuberance. It is
likely that the Yen suffers against higher yielding FX over the near-term.
In Japan, influences are neutral on the Yen as the economy is generally better than previously expected. The sales tax hike appears to be a go, with Prime Minister
Shinzo Abe set to decide the matter on October 1, and the Bank of Japan has thus far indicated that it would be willing to extend further monetary easing to
prevent a dip in economic activity (higher taxes lead to lower consumption).We expect that BoJ policy will weigh on the currency into year-end, driving USDJPY
towards 105.
Insignificant growth in World TradeStats
Outlook-Japanese Yen
Gloss
Inter Corporate Deposit
A type of unsecured loan extended by one
corporate to another.
Existing mainly as a refuge for low rated
corporates, this market allows funds
surplus corporates to lend to other
corporates.
6. Emerging Country- Ukraine
Ukraine is a country in Eastern Europe. Ukraine borders the Russian Federation to the east and northeast, Belarus
to the northwest, Poland, Slovakia and Hungary to the west, Romania and Moldova to the southwest, and the
Black Sea and Sea of Azov to the south and southeast, respectively.
Ukraine economy continues to show peer result due to slack external demand and microeconomic imbalance.
According to the data of the state statistics services of Ukraine, Ukraine’s GDP decreased by 1.15 in the second
quarter of 2013 compared to the same period of 2012, which corresponds to the rate of decline in the first quarter
(-1.1%). At midyear 2013, industrial production dropped by 5.3% compared to the same period of 2012.
According to estimate deficit of the current account, it may reach nearly $13.5bn, or 8% of GDP this year (a record
high since 2004).The capital account surplus may decline to $3bn in 2013 vs. $7bn expected in 2012.
In Ukraine, main industries, like, heavy metallurgical, machine-building, and chemical industries are based on the
iron mines, manganese ores and the coking coal. Food processing, notably the refining of sugar, is also a major
industry. In spite of its many resources, Ukraine must import large quantities of natural gas and oil. Steel,
petroleum products, machinery, and processed foods are exported. Russia is by far the largest trading partner;
others include Germany, Turkmenistan, and Turkey.
Exports remained unchanged y/y as decline in exports of steel was offset by higher agricultural exports.
In the first quarter of 2013 the volume of foreign direct investment (FDI) in the Ukrainian economy grew by 1.3%
– $ 55.709 billion. FDI volume in the Ukrainian economy amounted to $ 1,560 billion; this is by 76.25% higher
than last year. The share of foreign direct investments into the Ukrainian industry makes 30.8% of total ($ 17.171
billion), and in the financial sector – 29.1% ($ 16.221 billion).
Between India and Ukraine more than 17 bilateral agreements have been signed. India’s bilateral trade turnover
has increased from USD 138.62 million in 1992 to US$ 3,103.93 billion in 2012-13 (India’s exports were
US$519.66 million and imports were US$2,584.27 million). The FDI from Ukraine to India was $1.12million as on
February 2013.
Vital Economic Statistics of Ukraine
Economy
Particulars Details
GDP (nominal) $176 billion(2012)
GDP growth
rate
0.2% (2012)
Currency Hryvnia
Credit Rating B (S&P)
B (Fitch)
Caa1 ( Moody’s)
Fiscal Deficit 3.2% of GDP (2012)
Current
account deficit
7% (2012)
7. In FocusForex
Blackberry’s Knight: V Prem Watsa
Forty two years after he migrated to Canada, V Prem Watsa, who was then just
another IIT engineer in search of an MBA, now holds the future of an ailing, but still
iconic Blackberry in his hands. On 23rd September 2013, a consortium led by Fairfax
Financial Holdings, Watsa's flagship company, bid $9 a share to buy out Blackberry.
Hailed as “Canada’s Warren Buffett”, Watsa has made a name for himself, mostly as an
investor who identifies distressed and undervalued assets, bets on them, and reaps
returns. Fairfax Financial Holdings, an insurance-cum-investment company that
Watsa founded in 1985, went on to become Canada's most profitable company in
2008. Despite a couple of recent lacklustre years, Fairfax Financial Holdings' revenue
crossed $8 billion in 2012, up over 7% from a year earlier, with net profit at $532.4
million and nearly $37 billion in assets, spread across pulp mills, specialty retailers,
and restaurant chains. Its stock price has compounded at 19 percent annually.
Watsa's mantra of risk-averseness and long term view has stood him well over the
years, but it's his eye for the big picture that enables him to see investment pitfalls and
financial crises way before others, say observers. He was among the first to predict the
crash of 1987, the Japanese collapse of 1990 and the 2008 sub-prime mortgage crisis
in the US.
Reclusive so long his company’s $4.7 billion bid to buy smart phone maker
BlackBerry, has put the spot light on the Hyderabad-born billionaire. BlackBerry is by
far the most high profile company in Canada and Watsa has been a strong believer in
Blackberry from the time he started buying its shares. Fairfax raised its stake in
Blackberry from 2 percent in January 2012 (when he joined the Blackberry board) to
10% by mid-2013, during a period when the company stock prices were on a decline.
But while Watsa has a history of investing when things look bleak, he has never before
done a deal of this size, nor executed a trade in which his company will likely be
forced to take such a large operational role. Noting that BlackBerry lost nearly $1
billion in just the last quarter, Watsa will have to take drastic measures, potentially
selling off large parts of the company and shuttering its consumer phone business
entirely.
Data from 16th
September 2013 to 29th
September 2013
Sensex Nifty
19,742
.47
19,727
.27 5840.
55
5833.
20
Gold (10 gm) Silver (1 Kg)
29684
30685
49646
49659
Crude Oil ($/barrel) Dollar/INR
110.07
108.63
62.48
61.81
8. About Investeurs Consulting Private Limited
For a good business, finance is as crucial as vision, management and
product. Intuitively then Business Finance plays a vital role in the business
prosperity. We, at Investeurs Consulting Pvt. Ltd understand and
appreciate the vitality of this discipline and the responsibility that comes
with it.
As Business Finance Consultants we realize that finance is an enabler that
contributes significantly towards realizing your business goals. We bring to
the table 18 years of vast and vivid exposure to different businesses, a
profound understanding of business and financial dynamics and excellent
relationship with banks/ financial institutions.
Domestic Trade
Finance:
Negotiation of
Inland Letter of
Credit
International Trade
Finance:
Buyers’ Credit and
Suppliers’ Credit
Capital
Investment:
Project Funding
and Term Loan
Working Capital
Management
Factoring Private Equity
Rating Assistance
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