IndiGo
is the only profit-making airline in the Indian domestic aviation industry
today.
An average load factor (number of passenger-kms travelled to the number of seat-kms available OR average occupancy) of over 90% against an industry average of under 80% highlights IndiGo’s mastery at consistently providing a high quality service at an affordable price and utilizing the ‘scale advantage.’
IndiGo differentiated itself from the word go. During its launch in 2005, it positioned itself as an airline that is always on time.
Click to view Indigo TV Commercial, 2010
During my b-school project at IIM-A, my team and I deduced through extensive primary and secondary research that price was closely followed by punctuality in terms of the customer's most preferred attribute in an airline.
I have travelled by Indigo on a few occasions and have noticed that the aircraft is always near capacity. Even if it takes off late, it makes up for lost time during the journey and never fails to announce that it has arrived on time at the destination, followed by its recently received awards and accolades. It consistently drives the ‘on time every time’ notion home and gives the impression that the customer is a part of a prestigious service.
An important part of flight preparation prior to take-off is the turnaround time (or aircraft ground handling time), where the craft is serviced while it is on the ground between flights. IndiGo regularly meets a turnaround time of 22-25 minutes against an industry average of much more than 30 minutes.
Savings in time add up and translate to huge revenue opportunities for the carrier, as it allows an extra trip or two per day.
IndiGo is adept at marketing the brand through print and media. The in-flight catalogue, cleverly names "Hello 6E" provides a considerable choice of everyday items. It advertises useful gadgets and accessories targetting all age-groups. A large number of items don the Indigo logo, indicating the confidence that the 6-year old firm has in its brand. In fact, the page advertising watches is titled "On-time is a wonderful thing," consistent with its message on print and media ads.
Indigo is very particular about what it offers customers - affordable fares, on-time service, hygiene and crisp service. It does not approve of including an in-flight meal or a coffee in the ticket's price, when the customer might not want one. As one of its print ads say, it focusses on things that really matter.
Indigo's strategy has been consistent ever since its inception and it is now going international, with flights to Dubai, Bangkok and Singapore.
It is truly a world-class low-cost airline that is bound to increase its footprint by focussing on what really matters to the end consumer. What is critical though, is that Indigo should know what customers in various markets value and be wary of changing behaviours and demands to gain market share or maintain its leadership position.
Bon voyage IndiGo !
An average load factor (number of passenger-kms travelled to the number of seat-kms available OR average occupancy) of over 90% against an industry average of under 80% highlights IndiGo’s mastery at consistently providing a high quality service at an affordable price and utilizing the ‘scale advantage.’
IndiGo differentiated itself from the word go. During its launch in 2005, it positioned itself as an airline that is always on time.
Click to view Indigo TV Commercial, 2010
During my b-school project at IIM-A, my team and I deduced through extensive primary and secondary research that price was closely followed by punctuality in terms of the customer's most preferred attribute in an airline.
I have travelled by Indigo on a few occasions and have noticed that the aircraft is always near capacity. Even if it takes off late, it makes up for lost time during the journey and never fails to announce that it has arrived on time at the destination, followed by its recently received awards and accolades. It consistently drives the ‘on time every time’ notion home and gives the impression that the customer is a part of a prestigious service.
An important part of flight preparation prior to take-off is the turnaround time (or aircraft ground handling time), where the craft is serviced while it is on the ground between flights. IndiGo regularly meets a turnaround time of 22-25 minutes against an industry average of much more than 30 minutes.
Savings in time add up and translate to huge revenue opportunities for the carrier, as it allows an extra trip or two per day.
IndiGo is adept at marketing the brand through print and media. The in-flight catalogue, cleverly names "Hello 6E" provides a considerable choice of everyday items. It advertises useful gadgets and accessories targetting all age-groups. A large number of items don the Indigo logo, indicating the confidence that the 6-year old firm has in its brand. In fact, the page advertising watches is titled "On-time is a wonderful thing," consistent with its message on print and media ads.
Indigo is very particular about what it offers customers - affordable fares, on-time service, hygiene and crisp service. It does not approve of including an in-flight meal or a coffee in the ticket's price, when the customer might not want one. As one of its print ads say, it focusses on things that really matter.
Indigo's strategy has been consistent ever since its inception and it is now going international, with flights to Dubai, Bangkok and Singapore.
It is truly a world-class low-cost airline that is bound to increase its footprint by focussing on what really matters to the end consumer. What is critical though, is that Indigo should know what customers in various markets value and be wary of changing behaviours and demands to gain market share or maintain its leadership position.
Bon voyage IndiGo !
