By returning planes before the DCheck is due, IndiGo makes big savings. But when it launched, it began with three flights a day between Mumbai and Chandigarh with the sudden rise in capacity being hedged with the three flights originating at Bengaluru, Hyderabad and Chennai, which gave a decent number of connecting passengers.
It also means tapping the experience of our leaders. So the switching cost for the airline companies is very high. The benefits of this transaction are significant see Sale-and-Leaseback Model.
In IndiGo had 96 employees per aircraft compared to Air India's a plane. Some of the other choices made by Indigothat has already been explained in the value chain analysis such as Young fleet, Standardized fleet, sale and lease back, high turnaround time, Only economy class are some of the things that helps Indigo cut majority of its costs and gain a competitive advantage vis a vis the other airlines in India.
Even if the ground staff hit the passenger once, then also it is wrong. True, Ghosh and his team run an innovative and nimble airline. They operate a fleet of 40 planes with just people. Still, it begs the question: So, we try to leverage our core expertise.
IndiGo has been particularly aggressive against AirAsia India since the latter entered India in It has introduced an airport lounge service, again unusual for a no-frills airline.
IndiGo has a standardized fleet of As which requires it to deal with one set of pilots, spares and engines. This indicates how many seat miles generate revenue for every available seat mile. Since airline companies require highly technical and skilled workforce, recruiting them would be difficult. Assuming 60 of them are leased, the cash and non-cash incentives alone amount to Rs 4.
Mama the aviation expert says returning aircraft to leasing companies after five or six years helps. By this way, on-time performance is diligently monitored by Indigo.
In environmentally fragile areas, we might support the community and its tourism-reliant economy by protecting endangered species. It drives the company to resist the old logic of benchmarking the competitors in the industry and look across alternatives.
In some cases, these transactions turned losses into profits as it happened in fiscal To an extent, it has pushed out Jet Airways from some markets by capacity dumping if not mirroring and has made life difficult for rivals by pricing below cost.
These were reduced from lease rentals, boosting profits by a third in fiscal and helping the airline report a surplus in fiscal This will reduce the buyers bargaining power up to some extent.
However there are a few examples which have delivered even in these conditions and Indigo is one of them. Ghosh says it is difficult to fathom that Gangwal is a shareholder, adding that the airline does not even have review meetings.
In Blue Ocean Strategy, there are three simple characteristics or yard stick used to evaluate strategies — Focus, Divergence and Compelling tagline. Divergence The value curve of blue ocean strategy always stands apart from the competitors. It has built a reputation of being an on time airline service provider and hence a no frills policy does not impact the willingness to pay.
Humongous Order Placing a huge order helps airlines to bring down the cost price sharply. Last December, AirAsia launched a direct flight between two cities Pune to Jaipuradding 5, seats per month on the route. So, across its value chain activities, Indigo looks to cut costs wherever possible, without compromising on the bare minimum services that has to be provided to its customers.
Also, their management is less heavy at the top and hence better decisions could be taken faster. But the key difference in IndiGo’s strategy was to incorporate the purchase of aircraft into its business plan even before launch.
Other operators even now are talking of only a fraction of that order size, according to Kaul. Marketing strategy for Indigo. London Big 3 airlines starting LCCs Easyjet operating in 49 out of top market pairs Other regions were analysed using the similar framework Appendix 2 Key References “Customer segmentation revisited: The case of the airline industry”, Teichert et al, August “Success Story: Airline Segmentation.
Oct 11, · The airline has adopted a counterintuitive strategy of adding new aircraft and expanding capacity amid the slowdown, which seems to be paying off. Last fortnight, IndiGo Airlines, the country's. Indian airline IndiGo said it plans to start flying smaller planes to second-tier towns and cities later this year, in a shift in strategy for the carrier that has prided itself on.
IndiGo airlines have a competitive advantage over other services in terms of customer loyalty, services offered and the important of all the pricing strategy adopted by Indigo.
Because of its Pricing strategy it have. For its part, IndiGo airlines managed complexity to help it thrive in the downturn. The airlines single-minded focus on delivering market-leading on-time performance and running a no-fuss, low-cost-carrier model helped it rise to the top of an industry at a time of great turbulence for everyone.Wining strategy of indigo airlines