IndiGo Airlines

By- Prachi – 20BSP1623 Vinod – 20BSP3019 Titikksha – 20BSP2665

Rishabh – 20BSP1868 Satyam - 20BSP2145
 INTRODUCTION
PARENT COMPANY INTERGLOBE ENTERPRISES

Year 2005
FOUNDED
Rahul Bhatia and
By
Rakesh Gangwali

CATEGORY INDIAN DOMESTIC SECTOR

SECTOR AIRLINES

TAGLINE/ SLOGAN GO INDIGO

HEADQUARTER GURUGRAM
 HISTORY
• IndiGo was founded in 2006 as a private company by Rahul Bhatia of InterGlobe Enterprises
and Rakesh Gangwal. InterGlobe had a 51.12% stake in IndiGo and 47.88% was held by
Gangwal's Virginia-based company Caelum Investments. IndiGo placed a firm order for
100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in mid-2006.IndiGo
took delivery of its first aircraft on 28 July 2006, nearly a year after placing the order.
• On 17 August 2012, IndiGo became the largest airline in India in terms of market share
surpassing Jet Airways, six years after commencing operations.
• Philosophy: Offer fares that are always low, flights that are on time, and a courteous, hassle-
free travel experience. To note- IndiGo’s On Time Performance is one of the best in India.
IndiGo’s Technical Dispatch Reliability is 99.91% making it the airline with the least number
of cancellations in India.
MARKETING STRATEGIES
 STP

Indigo Airlines Segmentation Cost Conscious Passengers

Indigo Airlines Target Market Lower Middle Class / Middle Class

Indigo Airlines Positioning Indigo Airlines is a low-cost no-frills airlines connecting India
TAGLINE RIGHTLY FOLLOWED
“ON TIME EVERY TIME”
 SWOT ANALYSIS
Strengths Weaknesses
1. Indigo Airlines has strong backing promoters 1. Indigo airlines has limited market share
and is one of the largest low-cost carriers in growth due to intense competition
India 2. Still has to establish itself on international
2. Only LCC to make consistent profits. destinations.
3. One of the major airlines in India in terms of 3. Too many routes.
market share 4. No differentiation.
4. Indigo Airlines has entered international
markets has boosted its brand value.
5. Good advertising and marketing strategies
have increased its brand recall
6. Excellent offerings and on-board services
provided by Indigo Airlines.
 SWOT ANALYSIS
Opportunities Threats
1. Opening up of International routes can boost 1. Plenty of new LCCs to compete with for
business of Indigo. Indigo airlines.
2. Largest market share among LCCs in Indian 2. Rising Labor costs and changing govt
Market. policies.
3. Middle class taking to the skies can be a huge 3. Rising Fuel Costs can affect business
opportunity for Indigo airlines. margins for Indigo.
4. IndiGo Airlines concentrates on a particular
type of market which is economy-driven and
only serves that market. Thus it adopts FULLY
FOCUSED Strategy.
 Go Air

Spicejet
COMPETITORS
Vistara

Air India
 COMPETITION-MARKET SHARE
1. Indigo:-
a) Fleet of 250 aircraft
b) Market share of 54% as of April 2021
c) 250 Airbus A320neos and A321neos
d) Serve 63 domestic destinations and 24 international ones (pre-pandemic), with
over 1,500 daily departures in February.

e) Plans to serve 100 cities in India, south East Asia, Middle East and China by 2025
2. Spicejet:-
a) Market share of 12.8% as of April 2021
b) Fleet of Boeing 737s and Bombardier Q400s, along with a growing freighter
aircraft fleet.
c) Largest operator of regional aircraft in the country, with 32 of the type
Link: https://simpleflying.com/indian-airlines-
 FINANCIALS
• Debt: IndiGo has gone on record to say that the company has practically no debt. This is not the case for other airlines -
Air India, Jet Airways and SpiceJet all have huge debts which were taken to finance expansions. A large debt leads to a
considerable portion of revenue going to service the debt.
• Sale and Leaseback: IndiGo has been able to better leverage this by placing bulk orders for aircraft. In 2005, when
IndiGo did not even exist as an entity InterGlobe Enterprises placed an order for 100 A320s during the 2005 Paris Air
show. This was also one of the biggest orders during the show. The company again placed an order of 180 new A320s in
2011. A bulk order implies better bargaining capability with the manufacturer while buying and better returns when the
aircraft are later sold using Leaseback agreements.
 MARKETING MIX

Core Product Low-cost passenger air

PRODUCTS - Indigo Airlines provides 2 transportation for middle class and
types of product services they are lower middle-class customers.
1. On ground services
Supplementary Check in , Food on board ,Connecting flight while
2. In flight services Product traveling where the service is not available,
Complementary gifts along with the travel, In-flight
entertainment such as music, movies games and
Frequent flier programs

Augmented They Augmented product are-

Product
• Online booking
• Variety of meal options
• Pick up and drop service
• Mobile ticketing
Price - Indigo airlines succeeded because of the cheap fares which opened the gates for
the middle-income group. In fact, that happens to be its competitive advantage when
travellers are comparing prices. The control department plays a major role in maintaining
the cost by the company. With decrease in prices and increase in the number of passengers
every day, Indigo faces a tough competition from SpiceJet and Air India.

Place – Facility of online booking so that they can avoid the difficulty for customers in
going to a booking counter and wait. They also have tie up with various travel and tour
operators. The core strategies include keeping the airline the most affordable airline in
India and keeping flying a pleasant experience.
Promotion - The airline relies on its cost and availability to promote its brand across the
market. This investments in advertisements are low because it affects the cost. Promotion
methods used by Indigo aircraft include media vehicles like billboards, print media
advertising and advertising on travel portals.
Process -The process mix of indigo airlines involve the reservation system, how effectively the
flight information is provided to the customers, the facilities provided in the airport, Flight
Entertainment, Baggage handling facility, in-flight service and check-in process.
People - The people involved in the business directly and indirectly are very important for indigo airlines
as they will be providing a lot of information. Travel agents will be providing direct business to the airlines.
The engineering department maintains and repairs each aircraft whenever needed as well as assures quality
and regulatory compliance. IndiGo Airlines is known for its professional cabin crew which gives wonderful
service experience and is responsible for high quality service.
Physical Environment - Physical environment in airline can be divided into two-
1.Ground -The ground environment can be considered like the booking office, the baggage facility system,
on ground handling system can be considered as the physical environment of the indigo airlines.
2.In-Flight -In-flight service is the most important functionality which may have the direct impact on the
customers. The in-flight physical environment can be like the amenities provided in the flight, the cleanliness
of the flight, ambience in the flight.
 CUSTOMER EXPECTATIONS
• Knowing what Customer Expects is the first step in delivering Quality
Services
Reliability
• Airlines ability to perform the promised service dependably and accurately.

Responsiveness
• Airlines willingness to help customers and provide prompt service.

Assurance and Customization

• Caring, individualized attention the airline provides its customers.

Facilities and Flight Pattern

• Appearance of the airline’s ground facilities, aircraft, personnel and
communication materials.

Employees
• Knowledge and courtesy of airline’s employees and their ability to convey
trust and confidence
SERVICE DELIVERY GAPS
 GAP 1
• Lack of upward communication:-
• The employees of Indigo airlines don’t do upward communication with
their senior manager due to which manager can not able to understand
what happening in the organization.
• The employees of “Indigo Airlines” are not able to implement the service
of serve food to customers properly due to customers are not happy by the
service of “Indigo Airlines”.
 GAP 2
• Absence of customer driven standard:
• In the ‘economy class’ there is problem that Indigo airlines can not
able to provide customers driven standard and quality of service to
the customers.
• In Indigo airlines the airhostess takes lot of time to deliver the order
of customers.
 GAP 3
• Failure to match supply and demand:
• Customers are not taking the responsibility that to keep clean
the environment of airlines and flight, due to which lot of cost
incurred in the cleaning the flight and surrounding of airlines.
 GAP 4
• Lack of integrated marketing communication:
• The advertising and promotional activities of the Indigo airlines is
very low due to which there is the problem that customers are not
aware about scheme and discount on flights .
 SERVICE GAP RECOMMENDATIONS
• GAP-1
• Improvement in upward communication:
First of all the employees of the organization have to encourage to do the communication with the group member and with the
manager even also manager have to appreciate the communication of the employees and have to give feedback to the person who
are doing communication with managers by that procedure we can able to do improvement in the upward communication of
Indigo Airlines
• Service recovery:
The Indigo airlines have to give training to the employees to the various parameters such as:
• 1. How to serve food to the customers
• 2. How to deal with the customers
• 3. How to meet the expectation of customers
• Gap-2
• Customer driven standard:
The Indigo airlines have to give training to the employees that to how to behave ethically with the customers by the help of
training programme and there implementation we can able to meet the customer driven standard.
 SERVICE GAP RECOMMENDATIONS
• GAP-3
• Demand and supply:
• To meet the demand of the customers and to keep the smooth supply of goods in the flight the
‘supply chain management’ should maintain properly and to meet the demand of customers.
• GAP - 4
• Integrated marketing communication:
Indigo airlines should implement the ‘intranet’ facility to set the horizontal communication within
the organization due to which all problem of horizontal communication will be removed.
 MAJOR
ACHIEVEMENTS
 CHALLENGES FACED
• IndiGo reported a bad set of numbers in the last quarter of FY20.
• As passenger revenues tanked during the lockdown, IndiGo and its rival ramped up their cargo operations due to high demand for
transporting essential supplies. The sharp rise in the international cargo rates - from about $1,000 per tonne to $3,000 per tonne -
during the lockdown has further improved the viability of cargo flights.
• “Indigo saw a positive trend over the first few months of resumption of operations post the lockdown including the steadily rising
PLF, unit revenue and future bookings on the back of increasing customer confidence in air travel. ” William Boulter, Chief
Commercial Officer, Indigo Airlines.
• They are confident that their passenger loads will grow with the increase in capacity across our network. While the VFR segment
will lead the demand resurgence, corporate travel demand will remain low owing to the technological advancements within
organizations and while there is still some fear of virus and will pick up only once the situation normalizes to a larger extent.
• At present, the airline is operating at around 70 per cent of its pre-Covid capacity and plans to quickly scale it up to 80 per cent.
• “Indigo would continue the deployment of aircraft for 'CarGo-in-cabin' operations even after resuming 100 per cent pre-Covid
capacity levels," William Boulter, Chief Commercial Officer, Indigo Airlines.
• During the lockdown, the airline utilized aircraft belly space and added some minor equipment and instituted procedural changes
for the cabin to carry significant cargo payloads on its passenger aircraft.
• "We are also uplifting more 'Post Office' mail, on behalf of the government, than ever before, thanks to our broad network and
unmatched flight frequency."
FUTURE PLANS
• Larger market-While India might be the third-largest aviation market globally, only a small part (around
10%) of India’s massive population currently travels by air. Airbus estimates that the share of Indians
traveling by air will double to roughly 20% by 2038, giving India a huge growth opportunity. For IndiGo,
this expanding market will mean more opportunities to capture traffic and retain its place as the country’s
leading carrier. India is also a notoriously price-sensitive market, which allows IndiGo, and its low-cost
rivals to dominate the domestic market.
• Going regional- IndiGo’s recent announcement of seven new bases across regional and Tier-2 airports
around the country could signal the airline’s long-term plans. IndiGo’s choice to open multiple bases
instead of growing larger bases at hub airports is a change in strategy for the airline. With economic growth
seeing more demand for air travel arise in smaller cities, IndiGo could be seeking new opportunities.
• International- While international flights may seem like a distant memory right now, IndiGo could have
some big growth plans internationally. 2023 will see the rollout of the Airbus A321XLR, the longest-range
narrow body on the market. The plane will allow IndiGo to reach new destinations across Asia and fly to
Europe for the first time, opening a whole new market segment for the airline.
THANK YOU