IndiGo Airlines was started by people who were, by no means, having as deep pockets as some of their competitors but despite this, were able to bring up one of the most successful aviation ventures in Indian market- a market which is considered to be a death knell for airlines. It was in 2011-12 that the company recorded a modest profit of 57.5 crores in the backdrop of the failure of Kingfisher and heavy losses reported by all airlines. Going from strength to strength, the airlines reported a staggering profit of 787 crores in the 2012-13 financial year. This is the fifth consecutive year in which IndiGo has reported profits. This is again of particular interest when all other airlines are struggling to even control their losses what to think of breaking even or turning profitable. So, what is it that makes IndiGo special?
Four points define the success mantra of IndiGo Airlines:
1. A no-frills approach
2. Penchant for attaining highest levels of efficiency in operations, and
3. Customer service, attributed largely to its consistently high punctuality rate
4. Strategic clarity
Lets discuss these one by one.
A no-frill approach has ensured that it remains focused only on providing the low cost air tickets on its short haul flights and very basic amenities. There are not much of freebies, no entertainment facility, tight seating and no luxuries. As all its operations are limited to flights up to 3-4 hours, it does not provide much of freebies.
Efficiency in operations enables it to keep costs under strict control. Adherence to only type of aircraft (Airbus A320s) which is best known for delivering one of the best efficiency rates, using modern navigation equipment that can ensure saving of route length, quick turnaround times resulting in high percentage of aircraft utilization, using light-weight materials inside the aircraft for fitments and many other means that result in fuel and operational efficiency are some of ways that help it save on costs, which adds to its profitability.
Punctuality is one thing which the passengers have always wanted from airlines in India. This desire is being consistently being fulfilled by IndiGo which is known for its punctuality. Even if they have to face a little inconvenience in not getting freebies and fly without entertainment, they still flock to IndiGo as they know that this airline can be trusted for operating on time. This gives IndiGo a high level of customer loyalty. For its own part, it ensures that it delivers on its promise that ‘On Time is a Wonderful Thing’.
Another important aspect of its success lies in the foresight and strategy adopted by its promoters ever since its inception. The adoption of the LCC model of operation, expansion of its sectors of operation and fleet in a controlled way, ordering of 180 aircraft in one go with substantial savings in costs and full commitment on delivery of promises to customers are some of the main reasons that have made it the most sought after airlines in India.