IndiGo was founded in 2006 as a low-cost carrier. Through strategies like leasing aircraft to reduce costs, using a single aircraft type, and maintaining a single passenger class, IndiGo grew to become the top third airline in India by 2010. By 2012, IndiGo had a 21.3% domestic market share. IndiGo continues to focus on on-time performance, affordable fares, and hassle-free travel while pursuing profitable growth and good work conditions.

1. Presented by:-
Ridhima Bansod (67)
Gauri Desai (77)
Shruti Nilangekar (97)
Bhooshan Satpute
(107)
Divyata Vasatkar (117)

2. History of IndiGo
• Founded in early 2006 by InterGlobe
Enterprises
• Commenced operations on 4 August 2006 as a
Low Cost Carrier
• Rahul Bhatia, MD
• Aditya Ghosh, President
• By December 2010, IndiGo replaced Air India
as the top third airline in India

3. IndiGo’s Success
• Lease and buy back agreements
– Helped in spreading operational costs
• Using only A320 aircrafts
– Reduced running and fuel costs
• Agreements with manufacturers
– Reduced overhead costs
• Maintaining a single passenger class
– Helped in obtaining maximum returns
• Single brand image
– Low cost carrier

4. • IndiGo handled over 1 million passengers for
the first time in May-2011
• IndiGo held a 21.3% domestic market share at
the end of 2012
• “Only big objective is to prove that low-cost is
not low-quality"
India
domestic
market
share by
carrier:
Feb-2012

5. Indigo airlines Profit
• Entire profits of 993 crore in 2012-13 has
come from operations
Nothing Unique???
Airline Planes on lease
89%
90%
69%
93%
Planned order of planes in bulk and negotiated huge
discounts , hence, more earnings per plane from sale
and leaseback.

6. Finances of IndiGo
Particulars 2012 2013
Expenditure 5,654 Cr. 8,465 Cr.
Gross Profit 64 Cr. 993 Cr.
Revenue 5,718 Cr. 9,458 Cr.
Net Profit 128 Cr. 787 Cr.
Domestic
Market Share
22.2% 28.1%

7. Key Facts
• Market share of 28.6% (as of November, 2013)
• On-time performance of 86.5% (as of November,
2013)
• IndiGo stands for three things: on-time performance,
affordable fares and hassle-free travel experience
• First domestic low-cost airline to have CAT III
compliant pilots
• Several industry first initiatives like web check-in,
mobile bookings, queue busters, step less boarding
ramps and air-conditioned tarmac coaches

8. three targets
• Profitable growth-money to invest in the
future
• Continue to be one of the best companies to
work for
• To become a reliable product
Aditya Ghosh, President

9. Recent News
• SpiceJet and IndiGo pulled down air-ticket prices
by 15-30% across sectors
• Boosted travel bookings by 20-30%
• Airline plans to induct 20 Airbus A321neo planes,
a larger variant of A320
• IndiGo launches eight new flights various cities
– to increase frequencies
– to connect major cities like Bhubaneshwar, Guwahati,
Dibrugarh, Lucknow and Srinagar