OPERATIONS MANAGEMENTINDIGO AIRLINES SERVICES

BYApurva MittalHardik Doshi

Ketan GyanchandaniRiya Giri

Sanjeev Sharma

OPEARTIONS STRATEGY FOR FARE REDUCTION

Being a low-cost carrier, It offers only Economy class seating. To keep fares low, IndiGo does not provide complimentary meals in any of its

flights, though it does have a buy-on board in-flight. IndiGo operates to 33 destinations in India and abroad with 399 daily flights. IndiGo uses a hub and spoke model.

OTHER BEAUTIES OF INDIGO Less turn around time. More time in air. Air carrying cost Is less when compared to other airlines. Never concentrated on luxuries like Kingfisher and its rivals. Uses HUB AND SPOKE MODEL in its operations.

HOW DID INDIGO BECAME A SUCCESSFUL CARRIER???

Difference between IndiGo and Kingfisher is in the former’s ability to strike savvy deals—especially for its aircraft.

“The 100 Airbus aircraft deal signed in 2005 was a game changer as they managed to get an exceptional price and gave them the strategic ability to leverage it significantly.

The deal was to buy 100 Airbus 320 aircraft and every aircraft would be returned after six years. The airline has already received 50 aircraft and the rest is to join the fleet till 2015.

However, the real upside in IndiGo’s deal was a clause that ensured that Airbus would be responsible for anything going wrong with aircraft parts in subsequent years.

Advantages of Hub-and-spoke model Consolidation of passengers (economies of density) Decreased number of routes Increase demand (frequent flights) Consolidation of activities (personnel, maintenance, etc.) Decrease costs

HOW INDIGO HAS ATTAINED THE HIGHEST PROFITABILITY ???

POWER OF CONCENTRATION It operates on routes which have high traffic. Indigo has a fleet

of 70 aircraft, yet it flies to only 29 domestic and four international destinations.

Thus, IndiGo’s strategy is to provide more capacity on select routes, rather than spread itself thinly over several.

As each destination requires new investments (rentals, staff, ground-handling, equipment et cetera), this helps contain costs.

SOME STATISTICS

Keeping planes airborne as much as possible

 Indigo understands that a plane generates revenue as long as it is in the air.

Indigo gets an aircraft ready for its next flight in 31 minutes compared to 35 minutes a few years ago.

This has helped the airline achieve its target of keeping the plane airborne for 12 hours a day, despite the fact that it has been getting new aircraft on a regular basis.

OTHER FACTORS VENDOR MANAGEMENT AND MANAGING FUEL COSTS. Special training is given to the pilots such that they can reduce

the fuel costs accordingly.