© 2023 JETIR May 2023, Volume 10, Issue 5 [Link].

org (ISSN-2349-5162)

STRATEGIC ANALYSIS OF INDIGO AIRLINES:

CHALLENGES AND OPPORTUNITIES
MANAV BANSAL
Under The Guidance of
DR. HIMANSHU PRAJAPATI

Abstract stance, Indigo Airlines has a chance to keep its

Indigo Aircrafts is one of the primary low-cost dominant position in the Indian airline business.
transporters in India, and this analysis provides an Keywords: Challenges, opportunities, and
overview of the challenges and opportunities faced strategic analysis for Indigo Airlines
by the company. After outlining the company's Introduction
background, the analysis moves on to examine the Interglobe Aviation Ltd., doing business as IndiGo
industry using Porter's Five Forces methodology. Airlines, is a low-cost airline headquartered in
The focus then uses a SWOT analysis to examine Gurugram, India. The airline first took off in 2006,
Indigo Carriers' internal environment, highlighting and since then it has grown rapidly to become one
the company's strengths, weaknesses, of India's largest carriers both in terms of
opportunities, and threats. passenger volume and aircraft count. As of March
Indigo Airlines faces a number of significant issues 2022, IndiGo's fleet of 290 aircraft serves 87
at the present time, including the effects of the destinations via more over 1500 daily flights. This
COVID-19 pandemic on the travel industry and includes 63 domestic and 24 foreign airports.
rising fuel prices. The analysis concludes that in IndiGo Airlines, or Interglobe Aviation Ltd., is a
view of these challenges, Indigo Carriers should low-cost airline headquartered in Gurugram, India.
concentrate on diversifying its revenue streams, The airline was founded in 2006 by Rahul Bhatia
investing in new innovation, and expanding its of InterGlobe Enterprises and Rakesh Gangwal, a
operations across global business sectors. former CEO of US Airways.
The research also points out other openings that After starting out with a single plane in 2006,
Indigo Airlines might exploit in order to grow. The IndiGo Airlines has risen fast to become India's
growing demand for air travel, the government's largest airline. As of March 2022, the company's
focus on developing India's aviation industry, and route network consists of 87 airports across 63
the country's burgeoning middle class all domestic and 24 international locations, served by
contribute to these prospects. The research also a fleet of 290 aircraft.
indicates that Indigo Airlines, in order to stay IndiGo Airlines has maintained a healthy profit
ahead of the competition, should centre its business margin since its inception, and the company has
strategy around the needs of its customers. won dozens of awards for its efficiency, service to
Generally speaking, the primary analysis assumes customers, and timeliness. The airline controls
that Indigo Carriers needs to cultivate a robust and over half of India's aviation market, making it a
flexible methodology that can adapt to shifting major player in the sector.
economic circumstances, pounce on fresh IndiGo Airlines' low-cost business model has
opportunities, and triumph over upcoming revolutionised the Indian aviation industry and
challenges. If it plays to its strengths, works to made air travel more accessible to millions of
improve its deficiencies, and takes a proactive people by lowering ticket prices. The airline's
success and continued market dominance can be

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attributed to its dedication to streamlining by both employees and customers for issues such
operations, minimising expenses, and prioritising as delayed salary payments. Since the airline
the needs of its customers. industry is heavily regulated, any infraction is
This study intends to perform a strategic analysis thoroughly investigated. Businesses are raising
of Indigo Airlines, with a particular emphasis on prices to cover the costs of complying with the
the challenges and possibilities presented by the regulation.
Indian aviation sector. Review authors hope their Aspects of the Natural World
insights on Indigo Carriers' internal and external Flight delays and cancellations due to bad weather
environments will help them identify the most are an expensive problem for airlines. Airlines are
significant factors driving its future strategy and engaging in CSR programmes and adopting "fly-
implementation. green" tactics in an effort to reduce their
The scope of this study will involve a SWOT environmental impact.
analysis and a Five Powers analysis of the internal As a result, the PESTLE analysis of the aviation
business climate at Indigo Carriers. The report will industry has shown some of the external factors
also assess the company's strengths and affecting it. It is clear that the rising cost of
weaknesses, as well as the opportunities and operations, stricter rules and regulations imposed
threats it faces, before concluding with strategic by the DGCA, increased competition from other
recommendations. players, and shifting passenger demographics have
The PESTLE Approach all had a major impact on the airline industry's
Aspects of the Economy viability and profitability.
Changes in the price of aviation fuel can have both Using Porter's Five Forces Model, this article
good and negative effects on operating expenses examines the Indian civil aviation business.
and profits. Low economic growth leads to fewer Purchasers' negotiating clout
travellers, which raises prices for everyone. The The customer's choice of airline service is
growth of the middle class has helped airlines determined by factors such as the price of the ticket
boost their passenger occupancy rate and reduce and the frequency with which flights to the
their operating expenses. customer's selected location are offered.
Constraints of Politics Furthermore, there are numerous organisations
Allowing 100% FDI in Greenfield airports and providing equivalent services, so customers can
74% in existing airports enables carriers to take switch providers without incurring any loss. Thus,
advantage of new routes, expand their customer the buyer incurs minimal costs when making a
base, and generate more revenue. In order to switch. Since there are many different ways to
comply with the DGCA's (Directorate General of purchase tickets, including mobile apps, websites,
Civil Aviation) new passenger safety regulations, agencies, and over-the-counter services, the buyer
airlines must spend more money. The 5/20 rule, can choose the most cost-effective option. The
which states that local airlines must be in business internet is also a great resource for learning about
for at least five years and have twenty carriers deals and special offers made available by
before they can fly on international routes, numerous airlines. The buyer's bargaining position
discourages new entries into the market. will strengthen as a result of this. Brand loyalty
Factors Related to Technology and dependability are other feasible outcomes.
The number of people employed in the transport Some airlines are well-known for their punctuality,
sector has decreased dramatically as a result of some for their in-flight amenities, and yet others
video conferencing. Using satellite-based for their dedication to maintaining positive
navigation systems drives increasing prices in the customer relationships. Customers will stick with
aviation and electronic ticketing industries. the airline that offers the features they value the
Causes in Society most. The buyers' negotiating position will weaken
The emergence of the millennial generation as a somewhat as a result. If we consider all of these
spending power has led to a dramatic increase in characteristics, we can conclude that the buyers
customer expectations for quality of service. This have moderate to high bargaining power.
has implications for the way airlines set their Suppliers' negotiating leverage
prices. Recent years have seen a shift in the typical The airline industry relies mostly on three primary
traveller, with frugal fliers opting instead for coach suppliers.
seats. 1. Airplanes
Aspects of the Law 2. Fuel
Increases in legal costs can be attributed to the 3. Labour (pilots and cabin crew members)
growing number of lawsuits filed against airlines

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Aircraft: There are just a few of aircraft permits and licences from various government
manufacturers in the world. Only two companies, agencies. These include the Ministry of Civil
Boeing and Airbus, control more than 90% of the Aviation, the Ministry of the Environment, the
market. This points to a highly concentrated Ministry of Transportation, and others. This means
market. This means that carrier organisations have there will be lots of red tape to slow things down.
limited options when it comes to switching service By weighing the aforementioned considerations,
providers. Airline companies and aircraft we find that it is difficult to get into the airline
manufacturers make substantial financial market and that there is little danger to established
commitments in exchange for a long-term contract. players.
Generally, aircraft manufacturers prefer long-term Strong rivalry
partnerships with them in order to acquire limits The Indian airline business is somewhat
and customised aircraft. This results in a very high fragmented due to the vast number of already
cost of exchange for the aviation industry. existing carriers, such as Indigo, Spice Jet, Air
There is nothing companies can do to influence the India, Jet Airways, Go Air, Jet lite, Air Costa, and
price of gasoline, which accounts for around 30 Air Asia, among others. This will cause a great
percent of airlines' operational expenses. Fuel costs deal of competitiveness among people. There are a
are affected by a wide variety of external factors, lot of challenges to leaving this industry.
such as the growth of the global economy, Businesses will have a hard time leaving the
conflicts, OPEC countries, and others. market because of the extremely high fixed costs in
Workforce: Most airline employees have this industry; as a result, pricing wars may break
advanced degrees and years of experience in their out to increase market dominance. As a result,
fields. In India, where pilots are responsible for competition poses a significant risk.
11% of the growth in the aviation industry, the Competitor threat
need for qualified professionals has never been Video conferences and other forms of
greater. The stealing of Indian pilots by Arab teleconferencing are making physical travel less
countries is just one example of how the situation vital. The deployment of bullet trains in India
has deteriorated. The DGCA in India has a 6- could open up new avenues for international travel.
month mandatory notification time for pilots, As a result, the level of competition from
longer than the typical 3-month period for substitutes is moderate at best.
representatives in most industries. This highlights Porter's Complementary Sixth Force
the need for skilled pilots in India. To get to a tourist destination, most people use
Work laws also exist and require approval from airline services, hence tourism could be good for
carrier organisations. According to the the airline industry.
aforementioned indicators, suppliers hold Summary
considerable bargaining power and constitute a A danger to the airline business exists from all
substantial danger. causes, with the exception of the new entrants. The
Competition from upstarts following chart makes clear that the airline
Large investments are necessary to launch a carrier business would have very poor profitability based
business in the aerospace industry. This will lead to on this Porter's framework. The other 2 players,
extremely large fixed costs. Customers are just as with the exception of Indigo, have frequently lost
concerned with safety as they are with the price of games.
a ticket and the overall quality of their travel Non-Market Analysis of Indigo Airlines
experience. As a result, they are not inclined to The government controls or regulates the airline
take advantage of discounts from unproven industry in India, as it does in the majority of other
airlines. Creating a steady stream of customers is a countries. In this industry, where government
laborious process. Incumbent firms in the business regulations govern a firm's potential, the
consistently seek out strategies to block the entry nonmarket component may be equally as important
of new entrants. Since they can afford price wars as the market component. Indigo Airlines must
because of their larger economies of scale, they therefore properly develop and implement its
will persistently try to counter the new entrants. It nonmarket strategy.
would be challenging for airlines to attract highly Using the 4I paradigm, we shall assess Indigo
technical and trained staff. Due to the scarcity of Airlines' non-market strategy: Institutions, issues,
pilots, new entrants into the market must offer information, and interests:
lucrative compensation packages in order to entice
experienced pilots away from incumbent Apart from above, wars and terrorism may
companies. Starting an airline requires a number of significantly impact the sales in the airline industry

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and so a close watch must be maintained to not the case for its competitors. Indigo is able to
predetermine the change of routes and act avoid paying as much in airport fees since its
accordingly. planes are in the air for longer. As a result, Indigo's
planes are used for an average of 11.5 hours every
Operations in the Value Chain day. Customers will save time and effort by not
Only One Kind of Plane: having to research alternative airlines for
connecting flights.
Indigo only has one type of plane in its fleet, Competitors' destinations may seem to have good
although Air India, Jet Airways, and Spice Jet all access, but they are concentrated in Tier 2 and Tier
have dozens. Having the same group of people 3 cities, where traffic flows seasonally at best.
work as pilots, flight attendants, and the ground
crew allows for greater adaptability and lowers the Indigo has strong maintenance contracts since they
costs associated with new hires, training, and have a Power by the Hour agreement with its
technology. engine supplier, International Aero Engines (IAE),
which puts the onus of performance on IAE. Indigo
Because they only offer Economy class, Indigo can has parallel contracts with both Airbus and its
save money, resources, and manpower by not other key component suppliers. Spare parts are
having to accommodate any other types of reduced as a result of such contracts, and Indigo
passengers. Not having to maintain costly airport rarely needs to ground planes for maintenance.
lounges is another cost save.
In addition to making money while in the air, an
Indigo has a young fleet, with an average age of airline also collects fees for the time it spends at an
fewer than three years. A younger fleet means airport. Indigo has one of the shortest turnaround
cheaper maintenance costs. All of Indigo's planes times, at just 30 minutes. Again, this is an area
are leased for 5-6 years, so the company hopes to where having a single aircraft manufacturer can
keep its fleet young. Because of this, they won't save time and effort for the crew. Passenger
have to pay for the plane's maintenance, which participation in post-flight cleaning is another sign
would be necessary after 8 years of use. (The plane that the airline is serious about getting people out
can't be flown for up to two months while these the door as quickly as possible. Furthermore, they
checks are being done.) rarely need to stock and serve hot meals because
most flights are only 1.5 hours long (the average
gasoline: Domestic gasoline taxes are 30%, on top stage length). This also contributes to their rapid
of an 8.2% excise duty. Thus, in contrast to the turnaround time.
global average of 30%, our fuel costs are 45% of
our total operating expenses. Marketing
Indigo's planes take advantage of cutting-edge Low Investment in Marketing
fuel-saving equipment and flight planning software Indigo's use of 'dead space' in advertisements is
that finds the most fuel-efficient paths and exemplary. An engine makes a good example of
altitudes. Airbus A320neo aircraft have just been dead space. Putting up a sign in the void doesn't
delivered and put into service, and Indigo is the cost anything, but it does give them another way to
first airline to order one. The fuel savings for these get in touch with their passengers.
planes is said to be 15%, while their operating Indigo, in general, does not make expensive ads.
costs are reduced by 8%. To emphasise their focus on the customer, they
To save money on fuel, Indigo was one of the first only made animated commercials. Indigo is able to
airlines to allow planes to taxi at the terminal with reduce their advertising budget by using these
only one engine. Fuel hedging became legitimate animated commercials rather than filming
in 2007, and the corporation has since joined in. traditional commercials. According to their most
recent financial statement, Indigo only spent 1% of
Using a fleet of 102 planes for a total of 36 revenue on advertising and promotion. This
complaints, Indigo's route planning is more demonstrates how frugal they have been with their
efficient than that of its competitors. However, advertising dollars.
Spice Jet operates 58 aircraft to 46 different Having to rely solely on word-of-mouth promotion
locations. Indigo Airlines relies heavily on WOM marketing,
as evidenced by the frequent emails sent to
Every one of Indigo's organisation instructions is customers. The emails are easy to understand so
linked to around two objections, although this is that recipients won't automatically assume they're

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spam. All it takes is a click to get to the content- aircraft and ground stations through radio or
rich website. Emails are commonly sent to satellite, in contrast to the manual techniques
customers whose information was entered on a utilised by other airlines. Every time an Indigo
ticketing website. flight takes off, the plane transmits a message to
Marketing on a Grand Scale the operations centre, and then the computer
Indigo also strategically plans when to release registers that time as the departure. Similar to how
advertisements and run promos. When it first a message is transmitted to the control centre
started doing business abroad, for instance, a lot of automatically after a flight lands. This is how
effort was put into advertising. Kingfisher's Indigo ensures punctual delivery of your project.
advertising was especially intense during its Indigo has used ACARS from the company's
difficult financial times, with catchphrases such inception, long before the government mandated
"Let the bad times roll... Indigo's slogan, "Fly that other airlines adopt ACARS in 2014.
Indigo in good times and in bad times," is clearly a RNP
jab at Kingfisher's slogan, "Fly the good times." In order to establish a more secure and safe landing
Despite the negative feedback, Indigo benefited system and conserve fuel, Indigo Airlines often
from this decision. adopts the necessary navigation performance
(RNP) method. The Kochi-Bengaluru route is one
Human Resource Minimally Employed Staff of many that employs this tactic.
Indigo has one of the smallest workforces in the Specialists and carriers alike can reap the benefits
airline industry. They have a fleet of 40 planes but of the RNP approach, which includes more
only use 4,000 employees to manage it. They keep efficient traffic management in non-radar
the ratio at 1:100, which is far better than the 1:125 environments, less reliance on conventional
average in the business worldwide. This, of course, ground-based navigation installations, and a
allows them to decrease costs and enhance shorter flight path that saves 75 kilometres on each
revenues. The elimination of unnecessary layers of approach and roughly 400 kilogrammes of fuel per
management allows for quicker, more effective landing.
decision-making.
All training under one umbrella Virtual Reality Imaging Analysis
Indigo's centralised training programme is an Indigo's fleet utilisation, brand, and people
intriguing suggestion because it provides its resources are all examples of valuable, uncommon,
employees with training in three distinct areas: unique, and non-substitutable resources, as seen in
utilitarian ability development, client services, and the above figure. Indigo's reputation for prompt
delicate knowledge and authority. This variety in service is something the company has built up over
training helps its reps strike a better balance and time, and it's not something its rivals can easily
provide superior customer service. In addition, the replicate. Indigo has been buying planes from
'Extraordinary Work conditions' summary named Airbus for a long time now, giving them a cost
Indigo as one of the best companies to work for. advantage over competitors who can't buy planes
Indigo provides current internal employees priority from the same manufacturer.
for promotions and internal job postings, which
increases employee trust in the company. As a
result, the rate of irrelevant weakness increases,
and the expense of training new workers increases.
Another excellent example of Indigo's dedication
to cutting costs is the massive hiring of jobless
Kingfisher pilots. After the 2012 crash of
Kingfisher, Indigo moved ahead and hired between
200 and 300 Kingfisher pilots, paying them the
same or less as Kingfisher. Because they were able
to hire most of Kingfisher's trained pilots, Indigo
was able to save money on both labour costs and
training.
Technology
ACARS The Aircraft Communications Addressing Indigo needs marketing expertise to keep up with
and Reporting System, or ACARS, is a digital the competitors, who all have the same access to
connection system that enables the delivery of this tool. All the other airlines also have the option
brief, uncomplicated communications between to control and hedge their fuel costs. Because it

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was introduced first, Indigo's fuel management has money by contracting out flight maintenance to a
given the company a leg up on the competition. cheaper company.
Nonetheless, it will become a source of A plane's earning potential is not limited by its
competitive parity as others catch up. flight time. IndiGo maintains the shortest
Budgetary Outline: turnaround time in the industry, at 30 minutes, by
Jet fuel is the primary expense for an airline. The setting aggressive targets and continuously
price of fuel accounts for over 40% of total monitoring the time it takes to get an aircraft ready
revenue. The decline in crude oil prices is good for its next flight. This helps keep the plane aloft
news for airlines and other industries that spend a for its full daily allotment of 12 hours. In addition
lot of money on fuel. In recent months, the price of to cutting expenses and discouraging passenger
aviation turbine fuel (ATF) has dropped by 10%. loyalty programmes, IndiGo has a strict no-shrills
The price of ATF per kiloliter (kl) in Delhi has policy.
dropped from Rs. 44,288 to Rs. 39,892.32, a fall of Neither aircraft purchase debt nor working capital
9.99 percent. Additionally, the price was reduced is an issue for IndiGo. As seen by its cheap debt
by 11.94 percent, or Rs. 4,765.5 per kilolitre, to Rs. payments, it has a very streamlined debt structure.
35,126.82 per kilolitre, but it was recently Nearly 30 percent of the IPO's total proceeds, or Rs
increased by 12 percent. Jet Airways' fuel costs are 1,166 crore, will be used to pay off debt.
far lower than those of its competitors, SpiceJet
and IndiGo, despite the fact that Jet Airways' fleet Cost Structure
is equipped with advanced technologies like
IndiGo's Sharklet fuel-saving wing tip devices, 60.00%
which allow for significant fuel savings of up to 40.00%
15%. It's possible that this is due to Jet Airways' 20.00%
superior lobbying and fuel hedging. Having a fuel 0.00%
support contract in place helps businesses budget
sensibly. Jet Airways also coordinated fuel
management with competitors like Kingfisher to
save money.
IndiGo modestly maintained low fuel costs by Indigo SpiceJet Jet
transporting less fuel and by not offering hot
dinners ready, hence reducing the load ready and
fuel utilisation. Jet Airways has a modest Key Performance Indicators:
advantage over SpiceJet and IndiGo because they The capacity of an airline company is represented
do not hedge their fuel prices. Adding A320neos to by average seat miles (ASMs). It is the number of
its fleet will help it save money on fuel while empty or full seats per flight mile. Income Traveler
carrying more passengers. IndiGo is scheduled to Miles (RPMs) is the quantity of income procuring
receive 24 Airbus A320neos beginning in March seats (filled) flying one mile. It addresses
2016 and ending in March 2017. inhabitance Source:
or use. However Indigo and Fly
MoneyControl
IndiGo's employee cost to revenue ratio is lowest Aviation routes work comparable number of planes
because the company employs so few employees. Indigo has higher ASM due to its higher usage of
It has one of the leanest labour powers in the airplane (keeping them air-borne). The higher
industry. In 2012, IndiGo had 96 employees for ASM can likewise be credited to the more slender
every jet, while Air India had 250. In spite of this seats that Indigo purposes and the lesser boot space
ambitious growth strategy, IndiGo may face a it gives. It has 29 crawls of seat pitch of which 4
shortage of pilots and other skilled workers who inches is involved by the actual seat. SpiceJet's
would drive up labour expenses. IndiGo shrewdly Boeing 737-800 and 900 airplanes highlight a 35
recruited pilots from Kingfisher by paying them inch seat-pitch. The lighter seats shave off 700kgs
the equivalent of seven months' salary at from the airplane's weight saving around 50kgs of
substantially reduced rates and then some. fuel per flight.
The various costs are mostly composed of activity
costs. IndiGo achieves the greatest operational Neither travelers per flight nor the typical number
efficiencies. Since all of IndiGo's planes are of seats per flight show the usage of airplane since
A320s, the airline only needs to worry about one Stream aviation routes works airplane with a limit
type of pilot, one type of spare part, and one type as high as 186 and as low as 62. Therefore, when
of engine. Since IndiGo's pilots don't need to be compared to IndiGo's standard A320 fleet, the
retrained to fly different planes, the airline can save average capacity of these aircraft would be low.

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However, the load factor clearly indicates usage. value more modern aircraft due to their improved
Load factor is the proportion of Income Traveler amenities. Deal and leaseback is a cycle where a
Miles and Accessible Seat Miles. This shows the lessor purchases the airplane from the carrier and
number of seat miles create income for each rent it back to the airplane. The carriers firms
accessible seat mile. However, high load factors clearly sell the airplanes at a higher cost than
alone do not necessarily indicate a profitable normal and this permits the organizations to
performance. The amount paid by each passenger contribute the capital somewhere else. One of
is also important. As a result, Profit per Available Indigo's most frequent users of Sale and leaseback
Seat Miles (ASMs) is our focus. While other financing is As a result, it only has to pay leasing
companies lose money, Indigo is the only airline fees and does not have to include the cost of
that makes money in this situation. The majority of purchasing aircraft in its balance sheet.
Indigo's resources are concentrated along busy Indigo keeps a nitty gritty strategy and
routes. For instance, it operates 18 daily flights consequently conveys lesser food and cutlery,
between Delhi and Mumbai that fly direct. In lessening the heaviness of the airplane. It has
contrast to other players, IndiGo tries to offer more fabricated a standing of being an on time carrier
capacity on specific routes. This helps keep costs specialist organization and consequently a
down because each destination requires new straightforward strategy doesn't influence the
investments like equipment, staff, rentals, ground eagerness to pay. This results in cost savings and
handling, and so on. The cost of flying smaller increased revenue. Lower prices result from lower
aircraft to Tier-2 cities would be higher than usual. variable costs, which in turn increase revenue and
Business Model: market share.
Generalised Method
When asked to define Indigo, Rakesh Gangwal
used the phrase "strictly low cost carrier." Indigo's
goal is to minimise costs across its value chain
activities without compromising on the essential
services it must provide to its customers. Success
stories among Western European low-cost airlines
Southwest Airlines and Ryanair served as
inspiration for Indigo's business approach. Their
main focus is on supplying routes that have both
high demand and high profitability. They also
employ a hub-and-spoke model, which allows
them to reach many different cities in India. High
rates of utilisation translate to improved earnings
The picture depicts Indigo Airlines' business model for them.
and the manner in which the low-cost structure All of Indigo's other options, such as a youthful
model contributes to high profits. Indigo orders its fleet, a standardised fleet, sale and lease back, a
airplane in mass and one of the latest buys was a lengthy turnaround time, and solely economy class,
request for 180 planes (150 A320neos and 30 have already been covered in the value chain
A320s). Because airplane manufacturers would not analysis. Because of these decisions, Indigo is able
risk losing such long-term customers, such massive to significantly reduce expenses and compete more
orders give them a strong bargaining position. A favourably with other Indian carriers. Indigo is
standardized fleet would not only save money commonly assumed to fit the 'Cost Forerunner'
because spares would be less expensive to category of Doorman's Essential Situating Model.
transport and maintain. However, IndiGo's Dynamics of Competition
dependence on Airbus grows with a standardized AirAsia, a new entrant in the Indian airline
fleet. A uniform fleet partially negates the business, has already started a full-scale price war.
bargaining power of bulk orders, despite their Indigo, the industry leader, is not willing to sit on
higher value. the sidelines and is actively fighting back against
With the introduction of newer aircraft, Indigo's AirAsia's aggressive strategies. Even AirAsia's
fleet will have an average age of 4.5 years, which president, Mr. Fernandes, admits that Indigo is a
will decrease to 4 years in the future. More major headache for the company. Indigo has
youthful armada offer higher designing proficiency fought back against AirAsia's every move in India,
and breakdown now and again, assisting the planes whether it be price cuts or more flights on routes
with running on time. Additionally, passengers previously served by AirAsia. Every time AirAsia

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launches a new route, Indigo follows suit, sparking incomes, which should fuel rapid expansion in the
a price war. To counter AirAsia's efforts to attract airline industry.
business from niche markets, Indigo dispatched a References
number of flights from the same cities. When  IndiGo. (2022). About IndiGo. Retrieved from
AirAsia announced a nonstop flight between [Link]
Bengaluru and Chandigarh, Indigo was already  Directorate General of Civil Aviation. (2022).
airborne. Indigo is not making it easy for new Monthly Traffic Data. Retrieved from
competitors to enter the market. [Link]
AirAsia began offering nonstop service between portal/?page_id=2224
two Indian cities (Pune and Jaipur) in December,  Interglobe Aviation Ltd. (2022). Annual Report
with an additional 5,000 seats added each month. 2021-22. Retrieved from
From Bengaluru to Chennai, Kochi, Goa, Jaipur, [Link]
and Chandigarh, and vice versa, the Indian airline [Link]
offered "all-inclusive, one-way" rates starting at  [Link]
just $699. The almost 4,000 rupee cost that Indigo g-the-success-of-indigo-airlines
was charging to fly between Bengaluru and  [Link]
Chennai had to be lowered. After AirAsia's week- 12-06-11/news/32175194_1_kingfisher-airlines-
long sale with promotional tickets starting at 380 pilots-indigo-pilot-planes
(all-inclusive), Indigo announced special fares  [Link]
beginning at 1,647 (all-inclusive) for travel 14-03-31/news/48735375_1_jet-airways-air-india-
between June 10, 2015, and January 17, 2016. dgca
The price quoted by AirAsia was significantly
 [Link]
lower than the price of AC bus tickets for the same
ndigo-plane-becomes-first-to-land-using-
itineraries. To be competitive with SpiceJet, Indigo
fuelsaving-technology/[Link]
started offering all-inclusive prices this year
 [Link]
beginning at $1,499. These tickets were one
thousand dollars lower than what SpiceJet was  [Link]
nce_checks#D_Check
selling for $1,599. In January of current year,
Vistara began service on the Delhi-Ahmedabad  [Link]
and Mumbai-Ahmedabad routes. Indigo quickly family
expanded its service by introducing a daily sixth  [Link]
flight between Mumbai and Ahmedabad and a  [Link]
daily fifth flight between Delhi and Ahmedabad. ur
 Press release | Airbus, Indigo places order for
Indigo usually offers the same prices as its 130 A320 neo
competitors rather than initiating price wars. In  [Link]
addition, it has been more selective on a case-by- price-cut-by-10-nonsubsidised-lpg-
case basis rather than providing blanket price hiked/[Link]
reductions. Depending on available seats, Indigo  [Link]
may provide discounts. If the load factor is too [Link]
high, it will not be able to compete with the  [Link]
alternatives. Indigo frequently does price matching  [Link]
of this sort on weaker routes. y/companies/jet-airways-to-keep-it-simple-as-atf-
Conclusion hedging-backfires-for-other-carriers/41027/
Some of the factors that have led to Indigo's  [Link]
success were discussed. Indigo's success Go-to-take-delivery-of-24-a320neos-by-end-
throughout the years can be attributed to the fact march-422494/
that its business strategy is difficult to replicate by  [Link]
competitors. Copying only a few of Indigo IndiGo-operations-in-pictures/story/[Link]
Airlines' value-added procedures won't make  [Link]
competitors look silly. An excellent case in point is [Link]
Spice Jet, which has recently entered the black by  [Link]
adopting profitable practises from other airlines. /press-release-detail/detail/indigo-firms-up-order-
Strong rivalry between airlines is vital for the for-150-a320neo-and-30-a320s/
betterment of the sector as a whole, especially in
light of increased connectivity and disposable

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 [Link]
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