INDIGO AIRLINES

Presented By :Ajmera Karan 12DCP-006Akul Kailwoo 12DCP-009Amit Dugar 12DCP-013Dhruv Goyal 12DCP-032Harsh Chaudhry 12DCP-044Himanshu Singhal 12DCP-049

Aviation Industry

Richard Branson, the aviation entrepreneur once joked that

"The easiest way to become a millionaire is to start off as a

billionaire and then enter the aviation business".

Company Owners• Set up in early 2006 by Rakesh Gangwal and Rahul Bhatia, of InterGlobe

Enterprises

• InterGlobe holds 51.12% stake in IndiGo and 48% is held by Caelum Investments, a Virginia, US based firm, run by Rakesh Gangwal

• IndiGo is the largest low cost carrier in India and is India's largest carrier by market share as of August 2012.

• As of March 2012 it is the only airline in India making profits.

• IndiGo operates to 33 destinations in India and abroad with 373 flights each day.

• Unlike most low cost carriers, IndiGo uses a hub and spoke model used by full service airlines where the airline flights to different destinations are routed through its hub.

Company Statistics

Awards and achievements

• Best LCC by the Airline Passengers Association of India (2007)• Best LCC at the Galileo Express Travel Awards (2008)• Skytrax Central Asia's best low-cost airline award (2009)• CNBC Awaaz's Travel Award for best low cost airline(2009)• Safety Excellence Award by Rajiv Gandhi International Airport (2009)• Most Admired Travel Product of the Year 2009 by SATTE (2010)• Skytrax Central Asia's best low-cost airline award (2010)• Best Domestic Low Cost Service Airline for the Year 2010 by Travel Agents

Association of India (TAAI) (2010)• Safety Excellence Award by BIAL (2010)• Skytrax Central Asia's best low-cost airline award (2011)

Indigo's success can be attributed to certain things which has done differently as compared to others

1. Single type of airplane to reduce training and service cost2. On time performance3. High Passenger load factor – Flight occupancy percentage4. One of the lowest Cancellation rate in industry5. Lean Workforce6. No frills such as free food/drinks, lounges

Success Factors

Going International• IndiGo's first international service was launched between New Delhi

and Dubai on 1 September 2011.

• Over the following weeks, the international services were expanded to serve Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai.

Rapid Expansion• August 3,2011- IndiGo's 5th anniversary• Fleet of 42 Airbus 320 aircraft and a market share of 19.2%• On its 6th birthday this year, fleet has grown to 58 aircraft, implying that

Rahul Bhatia-promoted carrier added 16 aircraft in the last 12 months.• By early 2012, IndiGo had taken the delivery of its 50th aircraft in less than

6 years to capture more than 27% of market share • IndiGo is known to have placed the largest order in commercial aviation

history during 2011, when Airbus won the US$ 15 billion deal for 180 aircraft

Positioning Statement

Question to the MD- Rahul Bhatia -

How would you like to position Indigo?

Answer.

“Lowest Cost Structure but not at the cost of Quality.”

Positioning• Low cost structure and decent quality (no compromise)• Main market – Customers sensitive to Cost and On-time travel• New segment – Corporate bookings to help organizations cut travel cost with on-time travel

Primary Research• Survey with 11 questions.• Number of respondents - 118

Primary Research

Primary Research

Main Survey Findings

Preferred Airlines

Availability of flights

Cost Leadership• Successful implementation of low cost strategy

• Highly efficient management that ensures high rate of on-time arrivals

On-time Performance

• Airbus A320 aircraft is the only aircraft type in the fleet which is known for best-in-class comfort

Comfort

On-flight food quality• Non-Veg food • Veg food

On-flight food quality• Overall

Other findings of the survey

Focused Group Discussion Outcomes

• Video

Focused Group Discussion Outcomes

Aim of Discussion – to understand how Indigo is positioned in minds of people and what do they seek for?

• Short duration trips - comfort is not main issue• No class differentiation – i.e. only one class• Maximum value for money• Major Competitors – SpiceJet, Go Air, JetLite• Low cost Airline• Only Indian carrier operating with profits• On-time performance• Good in flight Experience• Seats not comfortable• Nice crew behavior and cleanliness

Points of Difference• On time performance.• GET PACKING Tie up with hotels

Points of Parity• Low costs• Online ticket booking

SWOT - StrengthsPrimary Research findings -• High brand awareness• Most of the customers are satisfied with customer behaviour• Flights are available to customers when required• Indigo provides with low cost flights• Indigo is best –in- industry stats for On-Time Performance

Secondary Research findings -

SWOT - Weaknesses

Primary Research findings - • No class differentiation – i.e. only one class.• Customers complain of uncomfortable seats.• Inability to serve more customers in single flight.

Secondary Research findings -

SWOT - OpportunitiesSecondary Research findings -

SWOT - Threats

Secondary Research findings -

Thank You