IndiGo Airlines

India’s premier low cost carrier that is also a market leader having about 32 percent of market share in Indian market, is now in the league of Jet Airways and Air India who have  100 aircraft fleet. By receiving its 100th plane, IndiGo completes its first order of buying 100 planes that was placed in 2005. The second order of buying 180 aircraft was placed in 2011 and very recently, it placed the third order of buying 250 Airbus A 320 Neo planes which was a record order. In all, it will be having a total fleet of 530 planes (by adding all received and ordered planes).

IndiGo has been counting on a single type of aircraft, the A320s, and has been making bulk purchases in order to reduce the costs of borrowings which gels with its no-frills business model of providing cheapest air tickets to passengers. It has ordered another 250 of the latest fuel-efficient NEO versions of these planes in order to make further savings on cost of operations by saving on fuel costs. Fuel costs make for a major cost head for air carriers in India and its high prices along with multiple taxes is one of the prime reasons for airlines running into losses in India. IndiGo, however, has managed to remain in profits and also capture the market share banking upon its flights punctuality, cost-effective operations and good customer services.