Indigo Airlines Strategy

Indigo Airlines Strategy

• 1.
  Case: Indigo Airlines Group-7 Section-A
• 2.
  How is alow cost carrier (LCC) different from a full service airline (FSA)? • Point to point flights at secondary airports: avoiding investment in transfer passenger traffic and saving on airport charges • Single type fleet: savings on aircraft maintenance and flight crew training costs • Single class cabin with lower seat pitch: increase in number of aircraft seats, typically by 15%or more, • Baggage restrictions, unassigned seating and minimal in-flight services: reductions in turnaround time and increase in ancillary revenues • Using direct sales with heavy emphasis on internet: savings in sales & distribution costs • Minimal ground services and outsourcing most non-flight operations: savings on airport fees and administrative costs
• 3.
  Indigo is partof the industry which historically has suffered great losses. However, Indigo has become the most profitable airline in the industry very quickly? Explain • IndiGo, India’s largest airline by passengers carried, reported a more than six fold increase in profit to Rs. 787 crore for 2012-13 • The airline has increased its fleet capacity by 39% since last year(70 planes), while the overall industry capacity shrunk by 4% • Deployed 28% of its capacity and handled 27% more passengers in 2012-13, while the overall industry’s passenger traffic fell by 5%. • IndiGo’s customer ratings are high, service delivery is consistent with quality maintained, operating and financial measurements are best in the industry • Overall, IndiGo continues to focus on their business plan with strategic clarity and has demonstrated high execution ability
• 4.
  Analyse the strategicpositioning of Indigo?
• 5.
  What are thekey sources of competitive advantage for Indigo? • Indigo's stuck to its low-cost, single class model unlike rivals Jet and Kingfisher • It implemented hub and spoke model. • Selling and leasing back planes helps its balance sheet. • Quality and detail key to good service-airline employs fewer people, with one of the industry's leanest work forces. • on-time performance is diligently monitored for every flight in real time via radio or satellite called Aircraft Communications Addressing and Reporting System (ACARS)
• 6.
  Thank You