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CRM Indigo
CRM Indigo
CRM Indigo
I. IndiGo airline is a privately-owned company founded by Rahul Bhatia of InterGlobe and Rakesh
Gangwal, a United States-based expatriate Indian in 2006.
II. IndiGo has become India’s largest passenger airline with a market share of 47.5% as on
December 2019.
III. The airlines primarily operate as domestic air travel as a low-cost carrier with focus on 3 pillars –
offering low fares, being on-time and delivering a courteous and hassle-free experience.
IV. IndiGo has become synonymous with being on-time.
V. Airline has grown from a carrier with one plane to a fleet of 257 aircraft (97 new generation
A320 NEOs, 123 A320 CEOs, 25 ATRs AND 12 A321 NEO). It has a total destination count of 87
with 63 domestic destination and 24 International.
VI. IndiGo can be recognized with OPERATIONAL EXCELLENCE value driven business.
VII. Indigo has won numerous awards for its operational excellence:
1. The companies with this discipline win through delivering better value and reliability.
2. They have lower costs than other competitors and the costs are driven by simplification,
standardization and economies of scale.
3. These organizations run on efficient lean processes with reliable quality and dependable
delivery.
4. They also offer the best combination of price and performance, though their products and
services will be better than the competitors.
Key areas that can help to measure how well an organization are:
1. Costs: analyze and adjust processes and products to facilitate the cost-effective delivery
2. Quality: detect, understand and remove problems through processes, products and services that
have impact before and after delivery.
3. Organizational performance: improve processes and automation to maintain efficiency for
speed and hassle-free delivery.
i. Majority of the planes used by IndiGo are Airbus A320, which are bought in orders of 10-200,
forming some of Airbus’s largest single deals. These bulk orders ensure favorable terms.
ii. Pilots, flight crew, mechanics need to be certified for only one aircraft.
iii. Using Airbus A320 neo helps to gain 15% fuel efficiency and saves 8% operational expenses.
iv. They also use airplane taxi to terminal with one engine, shutting down the second engine to
save fuel.
v. Lower fares through lowered costs and flights are on time with more optimized
maintenance/flight crew.
2. LEASE PLANES INSTEAD OF PURCHASE
i. After the delivery, IndiGo immediately sells the plane to an aircraft lessor, and hen leases the
plane back. This allows for it to have one of the youngest fleets in the world (Avg. 3.26 years)
ii. This model helps to maintain high cash flow and low debt.
iii. IndiGo maintains newer planes which does not require regular checks and major repairs saving
on the maintenance cost. Major checks are usually required for above eight-year-old fleets,
however IndiGo maintains six-year-fleet.
iv. Lower fares though better economics and reduced fuel costs is delivered. A hassle-free
experience because of lesser breakdowns or delays.
3. NO NON-CORE OFFERINGS
i. IndiGo doesn’t offer airport lounges and business class tickets.
ii. No loyalty programs are offered by the airlines.
iii. No frills services like hot meals or entertainment.
iv. Travelers are asked to dispose their garbage on their own while leaving the craft.
v. Low fares with low operating costs and flights on time with lower turn-around time.