Success story of indigo

Success story of indigo

1. Success story of indigo

2. IndiGo  is a low-cost airline headquartered at Gurgaon, Haryana, India. It is the largest airline in India in passengers carried, with a 42.6% market share as of October 2016. The airline operates to 41 destinations and is the second largest low-cost carrier in Asia. It has its primary hub at Indira Gandhi International Airport, Delhi. The airline became the largest Indian carrier in passenger market share in 2012. The company went public in November 2015. INTRODUCTION

3. IndiGo was founded in 2006 as a private company by Rahul Bhatia of Inter Globe Enterprises and Rakesh Gangwal, a United States-based  NRI . RAHUL BHATIA AND RAKESH GANGWAL

4. It commenced operations on 4 August 2006 with a service from New Delhi to Imphal via  Guwahati. By the end of 2006 the airline had six aircraft and nine more aircraft were acquired in 2007. In December 2010, IndiGo replaced state-run carrier Air India as the third largest airline in India, behind Kingfisher Airlines and Jet Airways with a passenger market share of 17.3 %.

5. WHO IS RAHUL BHATIA ? With a net worth of $3.6 Billion – Rahul Bhatia is the 38 th  richest person in India and the founder of InterGlobe Enterprises Limited that owns IndiGo, the largest and most profitable airline in India.

6. Rahul’s father used to run an airline agency called Delhi Express, which he had cofounded along with nine partners in 1964. Towards the end of 1991, Rahul and his father discovered that some of the partners had managed to gain majority stake in the company by secretly buying more equity in the company. Post this, Rahul and his father were asked to leave the company. Rahul decided to start over with $37,000 capital and started InterGlobe! In 1994, they also managed to gain the all-India franchise for what is now Galileo International (an airline reservation system), and then a Joint Venture with them to provide back-office services in 1999. Later Rahul Met Rakesh Gangwal (CEO, US Airways) and together they applied for the airline license in 2004 and started   IndiGo Airlines!

7. Rahul ordered 100 Airbus A320-200 aircraft , at $6.5 billion at the Paris Air Show in 2005. This was when IndiGo had not even been launched . IndiGo received the delivery of their first Airbus aircraft on 28 th  of July 2006, post which they started their operations on the 4 th  August 2006 with a service from New Delhi to Imphal via Guwahati . By the end of 2007, the company received 15 more aircrafts .

8. In 2011, the company gave the market another shock when it placed an order of 180 more Airbus A320neo aircrafts worth $15 billion . In the same year, on the completion of 5 years of operations, the airline was also granted permission to launch international flights as well . In 2013, IndiGo not only became the most profitable airline in India, but also became the largest airline in India in terms of market share as well. Soon, they also surpassed several competitors to become the second largest and fastest growing low-cost carrier in Asia just behind Indonesian airline Lion Air . As of date, IndiGo accounts for a total of 109 Aircrafts , and operates 818 flights to 40 destinations (35 in India and 5 abroad) in a day. And with a 38.5% market share , the company has grown on to become the largest airline in India.

9. Bulk deal , which helped them bring down a lot of costs too! The company not only had to pay a down payment of just 4%, but also received a 40% discount on list price for placing an order for 100 aircraft. The reason for a buying a single type of aircraft (Airbus A320) in similar seating configuration was to make use of the same crew from pilots to flight attendants to the ground force thereby cutting hiring, training, up gradation and maintenance costs . Sale-and-leaseback financial model! When IndiGo goes shopping, it uses a 6-year sale and leaseback agreement. This model just means the seller takes the aero plane back after six years, so the airline can induct a new one in its place. They believe, new aircrafts are better than old . Repairs are avoided by this strategy. Reasons behind Success of indigo

10. Operational efficiency IndiGo has opted to be a low-cost carrier and offers only Economy Class seating that accommodates 180 passengers per aircraft , due to which they don’t have to spend time, money and crew on privilege passengers, or maintain expensive lounges at airports. IndiGo does not provide in-flight entertainment or complimentary meals in any of its flights and offers a buy onboard in-flight meal programme, which helps them to keep fares low . IndiGo is also known to maintain the quickest turnaround time . Their ground staff has been trained to deplane all passengers in six minutes , unload and load the hold within 10 minutes , with strict instructions to remove dirt, dust and waste from the aero plane, and get the plane ready to fly again in 25 minutes or less!

11. Talking about the destinations that the airline flies to – IndiGo operates over a lesser number of destinations than its competitors, but then holds a higher frequency . This is achieved because – all of Indigo’s destinations are connected to at least two cities while most are connected to 3 or more destinations . Due to this, Indigo is able to fly for a longer duration and save up on airport charges, and maintain a high aircraft utilization rate of more than 11.5 hours per day per plane. IndiGo saves fuel by using different ways. First, they use software to optimize flight planning for minimum fuel burning routes and altitudes, and also use latest fuel saving technology. Second, Indigo has inducted Airbus A320neo family to their fleet, which claims to deliver 15% less fuel consumption and 8% lower operating costs.

12. Best low cost airline by CNBC Awaaz (2009, 2013) Best low-cost carrier by the Airline Passengers Association of India ( 2007) Best low-cost carrier at the Galileo Express Travel Awards (2008 ) AWARDS WON BY INDIGO

13. Best low-cost carrier in C Asia/ India by SKYTRAX (2012, 2013, 2014, 2015, 2016) CEO – INDIGO AIRLINES ADITYA GHOSH

14. Best LCC Aviation award for excellence by Centre for Asia Pacific Aviation (2015) Udbhavi Melant Sales Executive(Singapore) at  IndiGo  Airlines

15. THANK YOU PRESENTATION BY NANDITA AND EKTA