INDIGO AIRLINES

Presenters:- Nayan Patel Chintan Vaidya Shreyas Rane

Neeraj Mishra Abhishek Sharma Mahavir Modi
 History
• Setup in early 2006 by Rahul Bhatia of InterGlobe Enterprises and
Rakesh S Gangwal, a United States-based NRI. Adity Ghosh is the
current President.

• First take off on 4th August, 2006 from Delhi to Guwahati

• First international service was launched between New Delhi

and Dubai on 1 September 2011

• Had announced special introductory fares ranging from

Rs.999 to Rs.3,598

• By February 2012 it had replaced Kingfisher as the second largest

 The Success Mantra
• Market share of 28.6% as of December 2013
• With its fleet of 76 new Airbus A320 aircraft, the airline offers 485
daily flights connecting to 36 destinations
• None of the flights have business class or first class sections – a
complete low-cost carrier
• Buying only one type of aircraft and keeping operational costs as low
as possible
• Emphasis on punctuality
• Focuses on adding a new plane every six weeks
• Cater to the needs of the modern Indian traveller who does not want
to waste time, money or energy in the process of travelling
 Awards and Recognitions
• Best LCC (low-cost carrier) by the Airline Passengers Association of
India (2007)

• Best LCC at the Galileo Express Travel Awards (2008)

• CNBC Awaaz's Travel Award for best low cost airline(2009)

• Skytrax Awards – Best low cost carrier (2010, 11, 12,13)

• August 2013, the Centre for Asia Pacific Aviation ranked IndiGo
amongst the 10 biggest low-cost carriers in the world
 STP
Segment Cost conscious passengers
Frequent & Domestic travellers
Same day ‘to-and-Fro’ fliers

Target Group Lower & Upper middle class

Positioning Low cost; No frills
On time Performance; No delays
Limited passenger service
Frequent departure
High loading factor (89.90%)
No compromise on quality
Only economy class
 Indigo Vs. Competitors
Net
Revenue Profit/Loss Aircrafts Destinations Flight per
(in crores) day

Indigo 9,458 787 76 36 485

SpiceJet 5,714.55 -191 55 54 370

Jet 17,070 -480 120 75 620

Airways

Air India 16,130 -5,198 108 95 400

Financial Year 2012-13

source: wordpress.com
 Indigo Vs. Competitors
Kms (’000) Passengers Carried Hours

Indigo 112,523 1,47,69,454 204,122

SpiceJet 87,637 1,06,08,899 136,449

Jet Airways 125,804 1,58,26,347 294,551

Air India 89,213 92,79,713 157,889

As on 31st Oct,2013
Financial Year 2013-14
 SWOT
Strengths Weakness
1. Strong backing promoters and is 1. Not to many routers as compared to
one of the largest low cost carriers in competitors
India 2. Still has to establish itself on international
destinations
2. Only LCC to make consistent profits
3. Highest domestic market share
4. Entry in international markets has
boosted its brand value
5. Good advertising and marketing
strategies have increased its brand
recall

Opportunities
1. Opening up of international routes
2. Largest market share among LCCs in
Indian market
3. Middle class taking to the skies
Threats
1. Plenty of new LCC’s to compete with
2. Rising labour costs and changing Govt. policies
3. Rising fuel cost
 A Few Comparisons
Indigo’s Performance. FY 2012 and 2013

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Revenue Operating Income Profit Aircrafts

2011-2012 2012-2013
Cancellation Rates (FY 2012-13)
 Load Factor (FY 2012-13)

Domestic Market Share(FY 2012 &

13)
On time Performance (FY 2012-13)
Thank You !