Indigo Airlines

Strategic Management Indigo Airlines
SUBJECT: Strategic Management
TOPIC: Indigo Airlines
Class: S.Y.B.M.S. (B)
Prof. PrasannaSant
Group members:
Name
Roll no.
VinayakChilveri
2207
History
Early beginnings
IndiGo was set up in early 2006 by RakeshGangwal and Rahul
Bhatia, of Inter Globe Enterprises. Inter Globe holds 51.12%
stake in IndiGo and 48% is held by Caelum Investments, a
Virginia, US based firm, run by RakeshGangwal.
IndiGo placed a firm order of 100 Airbus A320-200 aircraft
during June 2005 in plans to commence operations in
mid2006. Former US Airways Executive vice-President and
Marketing and Planning Bruce Ashby joined IndiGo as its Chief
Executive Officer. The airline already acquired parking lots for
its brand new aircraft at both Mumbai and Delhi airports. By the
time they announced the first flight, they had already
scheduled their first 20 aircraft.
IndiGo took delivery of its first Airbus A320-200 aircraft on 28
July 2006, nearly one year after placing the order, and
commenced operations on 4 August 2006 with a service
from New Delhi to Imphal via Guwahati. By the end of 2006, the
airline had six aircraft. Nine more aircraft were acquired in 2007
taking the total to 15. By December 2010, IndiGo replaced the
state run flag carrier Air India as the top third airline in India. It
already had a 17.3% of the market share, behind Kingfisher
Airlines and Jet Airways.
Going international
Following Indian regulations, in January 2011 IndiGo received its
license to operate international flights upon completing five
years of operations. 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. On February 15, 2012, the civil
aviation ministry of India has lifted the barriers on the carrier
when was set over a year ago to defend the sinking national
flag carrier Air India from competition on the International
routes. The ministry announced that IndiGo's proposals to fly
to Dammam and Doha would get cleared immediately. IndiGo is
known to have applied for permission to fly to these two cities
several months ago and wasn't approved because of the
barrier.
Rapid expansion
By early 2012, IndiGo had taken the delivery of its 50 th aircraft
in less than 6 years. 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. This deal pushed
up the percentage of Airbus aircraft in India to 73%.
As of February 2012, IndiGo was expanding rapidly and was
making solid profits, the only airline in India to do so. It had
replaced Kingfisher as the second largest airline in India in
terms of market share. IndiGo's strong adherence to the low
cost model, buying only one type of aircraft and keeping
operational costs as low as possible along with heavy emphasis
on punctuality are said to be some of the reasons for its
success even when the airline industry in India is currently
going through a bad patch. IndiGo focuses on adding a new
plane every six weeks and sometimes even faster. However,
this rapid expansion had led to a scathing report by the DGCA
in December 2011, which highlighted problems in the airline
which could impact safety due to rapid expansion.
SriLankan Engineering, a subsidiary of the Sri Lankan flag
carrier SriLankan Airlines recently won the contract of
performing heavy maintenance checks on 26 of the 50 Airbus
A320-200 operated by IndiGo. SriLankan has been receiving
contracts for the past 4 years to perform maintenance
checks on IndiGo aircraft. IndiGo is believed to outsource its
aircraft to SriLankan because of the unbearable tax imposed on
the local MRO providers making them unfavourable when

compared to the MRO providers in Sri Lanka.
Introduction
India is one of the fastest growing aviation industries in the
world. Because of the introduction of liberalization policy in the
Indian aviation sector, the industry has witnessed difference
with the entry of the privately owned full service airlines and
low cost carriers. In 2006, the private carriers accounted for
around 75% share of the domestic aviation market. Besides,
there was significant increase in the number of domestic air
travel passengers. Some of the factors that have resulted in
higher demand for air transport in Indian clued the growing
purchasing power of middle class, low airfares offered by low
cost carriers and the growth of the tourism industry in India. In
addition to the liberalization policy, the deregulation policy has
also played a major role to encourage private players in the
aviation industry. Below graph shows the gradual growth in the
domestic air traffic: The growth in the aviation industry looked
promising and hence attracted many low cost carriers like Spice
Jet, Go Air and IndiGo after the success of Air Deccan in 2003
.On one hand, the booming opportunities incited players to
expand capacity but on the other hand, rising fuel costs and
taxation rates, increased the operational costs. Thus the lowcost players found it difficult to maintain their commitment. In
their urge to survive, they were compelled to increase prices,
add free refreshments and beverages on-board, etc. Some
players sought refuge in mergers, whereas some survived by
modifying their business model. However, amidst this aviation
turmoil, IndiGo continued to fly high. In its endeavour to
consistently maintain low costs, IndiGo resorted to measures
like outsourcing and having homogeneous fleet. These efforts
helped IndiGo to offer its passengers low air fares. Indigo is the
latest entrant as a low cost carrier in the aviation industry of
India. It started its operations on August 4, 2006. InterGlobe
Enterprises, a renowned travel corporation, is the owner of
IndiGo. The IndiGo team uses all of these resources to design
processes and rules that are safe and simple, that make sense,
and that cut waste and hassles, which in turn ensures a
uniquely smooth, seamless, precise, gimmick-free customer
experience at fares that are always affordable. It was awarded

the title of Best Domestic Low Cost CarrierIn India for 2008. The
airline currently operates 120 daily flights with a fleet of
nineteen brand new Airbus A320 aircraft and flies to 17
destinations. IndiGo plans to serve approximately 30Indian
cities by 2010, with a fleet of approximately 40 A320s.
IndiGo
IndiGo
IATA
6E
Founded
ICAO
IGO
Callsign
IFLY
2006
Commenc 8 April 2006

ed
operations
Hubs
Indira Gandhi
International Airport
Secondary
hubs
Chatrapati Shivaji
Netaji Subhas
Chandra Bose
Kempegowda
Chennai
Rajiv Gandhi
Focus
cities
Fleet size
107[1]
Destinatio 40
ns
Parent
company
InterGlobe Enterprises
Headquart Gurgaon, Haryana, India[2

]
ers
Key
people
Rakesh Gangwal, Founder

Rahul Bhatia, Founder
andMD
Revenue
143.2
billion(US$2.1 billion) (FY
2015)[3]
Net
income
13.04
billion(US$190 million) (F
Y2015)[3]
Website
book.goindigo.in
IndiGo is a low-cost airline headquartered at Gurgaon, India. It

is the largest airline in India in terms of passengers carried with
a 36.8% market share as of February 2016. The airline operates
679 daily flights to 40 destinations and is the second largest
low-cost carrier in Asia. It has its primary hub at Indira Gandhi
International Airport, Delhi.
The airline was founded as a private company by Rahul Bhatia
of InterGlobe Enterprises and Rakesh Gangwal, a United Statesbased NRI in 2006. It took delivery of its first aircraft in July
2006 and commenced operations a month later in August 2006.
The airline became the largest Indian carrier in terms of
passenger market share in 2012. The company went public in
November 2015. The airline operates a single aircraft type
of Airbus A320 with an all economy configuration.
IndiGo was founded in 2006 as a private company by Rahul
Bhatia of InterGlobe Enterprises and Rakesh Gangwal, aUnited
States-based NRI.[4] InterGlobe had a 51.12% stake in IndiGo
and 47.88% was held by Gangwal's Virginia-based company
Caelum Investments.[5][6] IndiGo placed a firm order for
100 Airbus A320-200 aircraft in June 2005 with plans to
commence operations in mid-2006.[7] IndiGo took delivery of its

first Airbus aircraft on 28 July 2006, nearly one year after
placing the order.[8] It commenced operations on 4 August 2006
with a service from New Delhi to Imphal via Guwahati.[9]By the
end of 2006, the airline had six aircraft and nine more aircraft
were acquired in 2007.[9] In December 2010, IndiGo replaced
state-run carrier Air India as the third largest airline in India,
behind Kingfisher Airlines and Jet Airways with a passenger
market share of 17.3%.[10]
In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in a
deal worth US$15 billion.[11] In January 2011, after completing
five years of operations, the airline got permission to launch
international flights.[12] The airline launched international
services in September 2011.[13] In December 2011,
the DGCA expressed reservations that the rapid expansion
could impact passenger safety.[14]
In February 2012, IndiGo took delivery of its 50th aircraft, less
than six years after it began operations in 2006. [15] For the
quarter ending March 2012, IndiGo was the most profitable
airline in India and became the second largest airline in India in
terms of passenger market share.[16] On 17 August 2012, IndiGo
became the largest airline in India in terms of market share
surpassing Jet Airways, six years after commencing operations.
[17]
In January 2013, IndiGo was the second fastest growing lowcost carrier in Asia behind Indonesian airline Lion Air.[18] In
February 2013, following the announcement of civil aviation
ministry that it would be allow IndiGo to take delivery of only
five aircraft that year, the airline planned to introduce low-cost
regional flights by setting up a subsidiary. Later, IndiGo
announced that it plans to seek permission from the ministry to
acquire four more aircraft, therefore taking delivery of nine
aircraft in 2013.[19] As of March 2014, IndiGo is the second
largest low-cost carrier in Asia in terms of seats flown. [20]
In August 2015, IndiGo placed an order of 250 Airbus
A320neo aircraft worth $27 billion, making it the largest single
order ever in Airbus history.[21] IndiGo announced
a3200 crore (US$480 million) initial public offering on 19
October 2015 which opened on 27 October 2015.[22] As of
February 2016, it is the largest airline in India in terms of
passengers carried with a 36.8% market share. [23]
Corporate affairs and identity[edit]
IndiGo uses as an Indigo-sky blue livery as seen in the Airbus

A320aircraft
IndiGo is headquartered in Gurgaon, India.[2]
Logo and livery[edit]
Twenty round dots arranged in the shape of an aircraft serves
as the logo of the airline.[24] The airline uses a two tone blue
livery on a white background with the belly of the aircraft
painted in Indigo with the logo in white. [25] The flight attendants
wear a single-piece navy-blue tunic with a cap and a thin indigo
belt designed by fashion designer Rajesh Pratap Singh and
make-up artist Ambika Pillai.[26] The airline has the tagline ontime focusing on punctuality.[26]
Operations[edit]
IndiGo became one of the fastest growing low cost carriers in
the world and was the largest profitable airline in India. [18] The
success of IndiGo has been attributed to its unique business
model which reduces costs.[16] The airline operates a single type
of aircraft (Airbus A320) in similar seating configuration which
simplifies crew training and maintenance. [16] The airline strikes
bulk deals with Airbus reducing unit costs. [16]The airline targets
a quick turn-around time of 20 minutes to get the aircraft ready
for the next flight, ensuring planes fly about 12 hours every
day.[27] Employees share multiple roles with a check-in staff
doubling as a baggage handler.[27]
Destinations[edit]
Main article: IndiGo destinations
As of May 2016, IndiGo operates 679 daily flights to 40
destinations, 35 in India and 5 abroad.[28][29][30] It has its primary
hub at Indira Gandhi International Airport, Delhi.[31]In January
2011, IndiGo received a license to operate international flights
after completing five years of operations. [32] IndiGo's first

international service was launched between New Delhi
and Dubai on 1 September 2011.[13] International services were
later expanded to
serve Bangkok, Singapore, Muscat and Kathmandu.[13] The
airline is considering launch of flights to Kunming, China.[33]
Fleet[edit]
In order to reduce operational overhead, IndiGo operates only
the Airbus A320 family of aircraft in its fleet. As of May 2016,
IndiGo operates the following aircraft: [1][34]
IndiGo operates an all Airbus A320 fleet

IndiGo fleet
Passen
gers
Aircraft
Airbus A320200
In
Orde
Servi
allrs
ce
econom
y
104
Airbus
A320neo
Total
108
426
[36
Note
180
17 dry leased[35]
189
First delivered on 11
March 2016[37]
Some orders convertible
to A321neo
426
Fleet info[edit]
IndiGo received its first A320 in July 2006 and planned to induct
100 aircraft by 20152016.[38] In 2012, the airline took delivery
of its 50th aircraft[11] and the 100th aircraft was delivered on 4
November 2014, completing its initial order ahead of schedule.
The Airbus A320neo family aircraft ordered in 2011 were to

be delivered starting 2015.[40] However, due to a delay in the
production and delivery of these aircraft, IndiGo dry-leased a
total of 22 used aircraft to cope up with the demand. [36] The first
A320neo aircraft was delivered to IndiGo on 11 March 2016. [37]
[39]
New aircraft orders[edit]
An Airbus A320 in IndiGo colors before delivery at Toulouse

IndiGo placed an order for 100 Airbus A320-200 aircraft worth
US$6 billion in June 2005 during the Paris Air Show with plans to
commence operations in mid-2006.[7][41][42] IndiGo signed
a memorandum of understanding for an additional 180 Airbus
A320 aircraft including 150 with the New Engine Option (NEO)
worth US$15 billion on 11 January 2011 and IndiGo will be one
of the launch customers of the A320neo aircraft. [43][44]
On 15 October 2014, IndiGo expressed its intention to order a
further 250 A320neo aircraft worth US$25.7 billion at list prices.
[45]
On 15 August 2015, IndiGo confirmed the order for 250
A320neo aircraft for $26.5 billion.[1] The order also provides
IndiGo the flexibility to convert some A320s to A321neo which
can seat more passengers and fly on longer routes. [46] The order
of 250 jets is Airbus's single largest order by number of aircraft.
[47]
Services[edit]
Being a low-cost carrier, IndiGo offers only economy
class seating accommodating 180 passengers per aircraft. 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
meal programme.[48] No in-flight entertainment is available
and Hello 6E is the in-flight magazine published by IndiGo.
[49]
IndiGo offers premium services, where the passengers can
avail additional benefits like a pre-assigned seat, multiple
cancellations and priority check-in at a higher fare. [50]
Awards and achievements[edit]

IndiGo has won the following awards:
Best low-cost carrier by the Airline Passengers Association

of India (2007)[51]
Best low-cost carrier at the Galileo Express Travel Awards
(2008)[51]
Best low cost airline by CNBC Awaaz (2009, 2013) [51]
Best low cost carrier (2010, 2011, 2012, 2013, 2014) by

Skytrax[52]
Airline Of The Year (India) by GMR Group (2015)[53]
Best LCC Aviation award for excellence by Centre for Asia

Pacific Aviation (2015)[54]
See also[edit]
List of airlines of India

List of airports in India
List of companies of India
Transport in India
References[edit]
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Jump up^ "IndiGo FAQ's". IndiGo. Retrieved13
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52.
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External links[edit]
Below are the key factors of the business model of IndiGo

airlines:
A single passenger class.
Single type of airplane to reduce training and service cost.
No frills such as free food/drinks, lounges.
Emphasis on direct sale of ticket through Internet to avoid
fee and commissions paid to travel agents.
Employees working in multiple roles.
Unbundling of ancillary charges to make the headline fare
lower. In this report, we will analyse what strategies IndiGo
followed to enter the aviation industry. Also, we will discuss how
IndiGo implemented the low cost strategy to gain competitive
advantage and provide recommendations to sustain its
competitive position in the long-term. To know about the
industry attractiveness of aviation and the factors that helped
IndiGo enter this market, we will use the Porters Five Forces
model. This will be useful in gaining insight about the entry
barriers, power of buyers and suppliers, competition among the
existing players and the feasible alternatives in aviation
industry. SWOT analysis of the company will help us understand
the current positioning of the company based on the analysis of
external and internal environments. For internal analysis, we
will study the criteria for sustainable competitive advantage as
well as the Value Chain Analysis. This will help identify the
strengths and weaknesses of the company. Further, the analysis
of government policies, competitors strategies and other
variables like fuel prices, increasing domestic traffic, economic
downturn etc. will lead us to the external influences that affect
the aviation industry of India. Hence, using the external

environment study, we can come to know about the
opportunities and threats for IndiGo airlines. Thus, the
consequences and influence of the all factors of SWOT taken
together will aid in the formulation of alternative strategic
actions that IndiGo may consider to sustain its competitive
advantage.
IndiGo
Parent Company InterGlobe Enterprises
Category
Indian domestic sector
Sector
Airlines
Tagline/ Slogan
Go IndiGo
USP
On Time Performance, Lowest Price

STP
Segment
Cost Conscious Passengers
Target Group
Lower Middle Class / Middle Class
Positioning
Low Cost No Frills

Competition
Competitors
1.Go Air
2.Spicejet
3.Kingfisher Red
4.JetKonnect
Executive Summary
Objectives
The objective of this report is to study the external environment

of the Aviation Industry in India. Subsequently, internal
environment analysis is conducted for IndiGo Airlines. With the
help of this comprehensive study, we have suggested
recommendations that can be adopted by IndiGo to sustain its
competitive advantage by utilizing its cost leadership strategy.
Methods
To understand the important factors responsible for the
formulation of corporate strategy, we have utilized Strategic
Management tools like Porters Five Forces model, Value Chain
analysis, TOWS matrix etc.
Limitations
Due to confidentiality clause and corporate policies of the
company, accurate financial data could not be obtained for
IndiGo Airlines. However, most recent and reliable data sources
have been referenced for the analysis of this case.
Findings
IndiGo airlines entered the low cost carrier market in aviation
industry in 2006. It has been able to achieve its break even
within two years of its launch and has reported gross revenue
of 60 cores this year. Despite the decline in the aviation
industry and global economic slowdown, IndiGo has accelerated
its growth rate. Also, IndiGo being a new entrant has managed
to become a cost leader in its sector
IndiGo says passenger safety its mission

New Delhi - Low cost carrier IndiGo Monday said it has not
flouted any safety norms by not reporting incidents of flight
duty times of airlines' personnel or occurances of snags, which
were mentioned in a report by the aviation watchdog.
"IndiGo is a very quality conscious airline and passenger safety
is paramount to our companys mission and values," the
Gurgaon-based airline said in a statement.
IndiGo was responding to reports which said the financial audit

conducted by Directorate General of Civil Aviation (DGCA) had
rapped the budget carrier for flouting various safety norms by
not reporting flight duty time limitation (FDTL) for pilots and
cabin crews.
The audit found that 35 incidents of FDTL were not reported
coupled with many instances of snags.
IndiGo said the FDTL incidents occurred due to reasons such as
weather, traffic congestion and flight diversions.
"These 35 FDTL issues occurred over 74,500 flights operated by
IndiGo from January to October 2011. We would like to reiterate
that these FDTL's occur due to unavoidable circumstances such
as weather, traffic congestion and flight diversions."
The watchdog's report criticised IndiGo for instructing its pilots
not to report small incidents and that the airline faced a severe
shortage of training examiners for pilots.
The examiners review the performance and technical
knowledge of serving as well as trainee pilots.
IndiGo said it had hired more pilots and training examiners than
the normal hiring ratios.
"We have consciously over-hired pilots, especially highly trained
and experienced pilots and training captains, far more than the
normal hiring ratios."
On other allegations that the DGCA reviewed the fleet induction
plans of IndiGo because of its rapid expansion plan, the airline
said: "IndiGo is in line with the strategic plan of the ministry of
civil aviation (MOCA) for 2010-15, which recognizes the need
for growth."
"The government policy fully supports the need for additional
capacity in the air transport segment to meet the growing
needs of the travelling public."
The airline plans to expand its fleet to 55 aircraft from a fleet of
48 aircraft in December 2011.
IndiGo to go ahead with fleet expansion

New Delhi - Low cost carrier (LCC) IndiGo Tuesday said a
possible review of its fleet expansion by the aviation regulator
would not hinder the induction plan and it will add 12 aircraft
by the end of 2012.
"We will be adding 12 aircraft in the current year. We had a fleet
of 48 aircraft in December 2011 and this number will reach 60
aircraft in December 2012," AdityaGhosh, president, IndiGo
Airlines, told reporters here.
The Directorate General of Civil Aviation (DGCA) in its latest
financial audit report had rapped the airline for flouting
mandatory safety norms and said it could review the company's
fleet expansion plan.
"The fast growth induction plan of fleet in the organisation also
needs to be reviewed in view of the serious findings recorded in
the audit report," said the watchdog.
According to Ghosh, the company's fleet expansion plan would
not be hindered by any review.
"Our fleet expansion plan will not be hindered. India which has
a billion people and around 500 million middle class need more
aircraft than 400 (aircraft)."
"This business requires more aircraft. With only 400 aircraft how
can there be over capacity in a country of a billion people?"
Earlier, the airline had placed an order for 180 aircraft from
Airbus Industries worth $15.6 billion last year.
IndiGo was also criticised by in the audit for 35 incidents of
violations of flight duty time limitation (FDTL) for pilots and
cabin crews, and many instances of snags.
The company had defended itself by saying the FDTL violation

incidents occurred due to reasons such as weather, traffic
congestion and flight diversions.
IndiGo is the only profit making airline in the country, with a
market share of 19.8 percent in November, 2011.
To be honest, we really didnt want this ad to be on this side

of the table. Having fawned over it for a week, not ranking it
as one of the top three hurts us. But there is a reason
behind this decision; we might like the creative, but then it
has to also be ranked from the perspective of how well it
was comprehended by the target audience. You see, for the
whole first week we coincidentally saw this ad on muted TV
sets (in our office), thus getting attracted by the visuals and
visuals alone; with which we still dont find any fault. In fact,
the concept of a flight crew doing a charged up Broadway
musical to explain the vision and mission of the airline along
with its working procedure, advantages, expertise and a
subtle brief on the services that it provides makes for a very
interesting watch (but of course, copied from the Facebook
ad). Wieden has adopted a very fresh approach to airline
advertising; moving away from the industry standard of
showcasing the aircraft fleet with the crew donning a very
professional and boring run of the mill demeanor. Not only is
it drawing everybodys attention, but it has also managed to
reach out to its target audience the well bred frequent
fliers and convince them to at least give them a chance. It
scores huge on brand recall; but some would argue that the
commercial is a tad too long. And if you happen to be in
front of the TV for more than an hour a day, chances are you
would have seen this commercial several times and that is
when it starts to lose its appeal although the girls featured
look as attractive the nth time as they did the first time
(duh! but yes, we love them!). Add to it the fact that theres
practically no levity. Outstanding cinematography, super

positioning, zero humour, and they missed the top 3!
External Analysis
Airline Industry Attractiveness
1. Foreign equity allowed:
Foreign equity up to 49 per cent and NRI (Non-Resident Indian)
investment up to 100per cent is permissible in domestic airlines
without any government approval2.
Attraction of foreign shores:
After five years of domestic operations, many domestic airlines
too will be entitled to fly overseas by using unutilised bilateral
entitlements to Indian carriers.3.
Rising income levels and demographic profile:
Demographically, India has the highest percentage of people in
age group of 20-50among its 50 million strong middle class,
with high earning potential.4.
Untapped potential of India's tourism:
Tourist arrivals in India are expected to grow exponentially,
especially due to the open sky policy between India and the
SAARC countries and the increase in bilateral entitlements with
European countries, and US.
Glamour of the airlines:

No industry other than film-making industry is as glamorous as
the airlines. Airline tycoons from the last century, like J. R. D.
Tata and Howard Hughes, and Sir Richard Branson and Rd. Vijay
Mallya today, have been idolized.
Porters Five Forces strategy for Airline Industry
1. Threat of New Entrants

Product differentiation:
In low cost carriers, there is not much differentiation in the
basic service that is being provided to the customers.
Differentiation can only be achieved by Value Added Services.
IndiGo provides check-in kiosks, stair-free ramps, and QBusters. Hence this argument works in favour of IndiGo.
Switching cost:
The switching cost is not high. Customers can easily choose
other low cost carriers.
The switching cost of an airline company to other
business/industry is high as the exit
cost is high
In aviation industry the major entry barriers can be:

Government regulations:
1. The government's open sky policy has encouraged many
overseas players to enter the aviation market.
2.Aviation was primarily a government owned industry. Due to
liberalisation Indian aviation industry is now dominated by
privately owned full-service airlines and low-cost carriers.
Private airlines account for around 75 per cent share of the
domestic aviation market.
Indian Civil Aviation Policy:
Private sector is allowed to operate scheduled and nonscheduled services.
Operator should be a citizen of India or a company or a body
corporate which is registered in India and whose principal base
of business is in India.
Chairman and at least two thirds of its Directors are Indian

citizens.
Foreign equity participation up to 49 present and investment by
Non- Resident Indians (N.R.I), Overseas Corporate Bodies
(OCBs) up to 100% is allowed. Their presentation of the foreign
investing institution/entity on the Board of Directors of the
company shall not exceed one-third of the total.7.
Foreign airlines are not permitted to pick up equity. Foreign
financial institutions and other entities who seek to hold equity
in the domestic air transport sector shall not have foreign
airlines as their shareholders.8.
As regards safety and security arrangements, the operators
must ensure compliance with relevant regulatory requirements
stipulated respectively by the Director General of Civil Aviation
(DGCA) and the Bureau of Civil Aviation Security (BCAS).9.
For green field airports, foreign equity up to 100 percent is
allowed through automatic approvals. For upgrading present
airports, foreign equity up to 74 percent is allowed through
automatic approvals and 100 percent through special
permission (from FIPB).
Setup costs:
Nowadays, venture capital of $10 million or less is enough to
launch an airline.
In order to overcome the shortfall of aircrafts during the peak
seasons, airlines can utilize an ACMI lease agreement for the
extra aircraft. If the airline has many aircrafts, either owned or
leased, then they can offer their surplus aircrafts in their low
season to another airline that is facing peak season.
An airline company will bear the cost

it wants to start or expand its fleet,
be spread across several years. At
lease can be renewed or aircraft
replaced with more modern aircraft.
of purchasing an aircraft if
leasing allows the cost to
the lease term end, the
can be returned, to be
Fuel prices:
Domestic ATF prices have increased by over 160 per cent from
the beginning of 2005 till last year and by over 80 per cent
from a year-ago levels. In India, oil companies do not import
ATF directly; instead they refine it from imported crude oil. With
rising crude oil prices, imports are becoming expensive day by
day and at the same time, the government is unable to pass on
the full impact of this rise to the consumer. As a result, the
state-owned oil marketing companies (almost 95 per cent of
the market is with state owned firms) are forced to sell diesel,
petrol, kerosene and LPG at way below cost, a cost they are
trying to somewhat make up by raising the price of ATF, which
is under their control. As a result prices of ATF in India are much
higher than some of the other Asian countries.
Resource:
The aviation industry in India suffers a shortfall of pilots. The
reasons are:
The aspirants can receive Commercial Pilot Licence (CPL) only if
they undertake a training abroad.
The reason being that in India, there is a lack of dedicated flight
Instructors, decade-old aircrafts and poor quality training
offered at a price much higher than what is offered by flying
schools in USA, Canada and Australia.
Indian institutes provide training with the help of their training
partners in the foreign countries like U.S.A, U.K etc. Private
airlines hire pilots; get expatriates or retired personnel from the
Air Force or PS airlines in senior management positions. Airlines
can contract employees such as cabin crew, ticketing and
check-in staff members. In airline sector, finding appropriate
labour-force is very costly. Moreover, due to the liberalization of
policies by government, foreign and private players often poach
work-force of competitors which leads to talent-drain and thus
losses.
2. Bargaining Power of Suppliers.
Any airlines in general face a duopoly of two major suppliers of

aircrafts i.e. Airbus and Boeing. There are other suppliers
like Dauphin,Dronier,Bell,ATR-42 but
do not
meet
the
requirements to serve the low cost commercial aircraft carriers,
particularly Indigo airlines. Fleet Forecast for the India-Region
2006-2011 shows that there will
Strategic Management
Be approx. 85% growth in the order rate of air carriers
. Thus, suppliers are few and thus in better position to bargain
as they always finds customers for their aircrafts.
IndiGo fleet comprise of Airbus-A320 and the switching
cost is high due to the limited number of suppliers.
Due to shortage of commercial aircraft pilots in India the
supply of pilots is concentrated, hence increasing their
power.
There are only four suppliers for ATF (Aviation Turbine
Fuel); IOC, Hindustan Petroleum Corporation, Bharat
Petroleum and ONGC and since their number is limited,
they possess more power.
The proof of evidence for high power enjoyed by ATF
suppliers lies in the fact that the ATF prices constitute 3540% of the costs in India compared to 20-25% globally.
The brand value of suppliers is high due to their less
number and results in higher bargaining power for them.
The airlines also face a threat of forward integration since
the suppliers are in close contact and are familiar with the
knowhow of the aviation industry.
The suppliers are few and thus in better position to

bargain as they always finds customers for their aircrafts.
3. Bargaining Power of Buyers
Buyers in airlines industry are large in number and highly
fragmented thus lowering their power .With the growing
Indian economy and increasing low cost carriers, the
buyers have increased and so have the growth
opportunities.
The switching cost is minimal since there are multiple
alternatives available. It is not difficult to move from one
airline to another or to switch to a substitute.
Furthermore the players in the particular strategic group
do have minimalistic differentiating points.
Backward integration from the buyers end is very difficult
and next to impossible.
4. Competitive Rivalry
The aviation industry is a highly competitive industry because
of which it is difficult to earn high returns in this sector. Below
are the major reasons for the high competition in the low-cost
carrier airlines:
Very little scope for differentiation between competitors
products and services
Aviation is a mature industry with very little growth. The
only way to grow is by stealing away customers from
competitors
Suppliers of aircrafts are the same, i.e., Boeing and Airbus.
Hence suppliers bargaining power is high.
Switching cost of customers is high for low cost carriers,

i.e., there is no brand loyalty. Closest competitor of IndiGo
is Spice Jet followed by Go Air
. Below is brief description about each of them:
Spice Jet
Is a low-cost airline based in New Delhi, India? Spice Jets
mission is to become Indias preferred low cost airline,
delivering the lowest air fares with the highest consumer value,
to price sensitive consumers. Its vision is to ensure that flying is
no longer confined to business travellers, but is affordable for
everyone and thus the tagline
Flying for everyone
Spice Jet airways began its operations in May 2005. Spice Jet
has chosen a single aircraft type fleet which allows for greater
efficiency in maintenance, and supports the low-cost structure.
It has a fleet of 6 Boeing 737-800 in single class configuration
with 189 seats. Spice Jets new generation fleet of aircraft is
backed by cutting edge technology and infrastructure to ensure
the highest standards in operating efficiency. Spice Jet currently
flies to 11 destinations.
Go Air Airlines
, owned by Wadia Group, is a low-cost budget airline based in
Mumbai, India. It has been showcased as
The People's Airline.
Go Air is looking at
'Commoditising air travel'
By offering airline seats at marginally higher train prices to all
cities in India. The Airlines theme line is
Experience the Difference
and its objective is to offer its passengers quality consistent,
quality assured and time efficient product through affordable
fares.GoAir's business model has been created on the
'Punctuality, affordability and convenience'
Model. Go Air operates four A320 aircraft with a single class,

180-seat configuration, and plans to expand its fleet to 33
aircraft in three years.
Thus, we can summarize from above data that all the three
players are trying to follow cost leadership strategy by bringing
down the ticket rates to the minimum possible value. However,
it is clear that, to sustain in this cutthroat competition, each
player will have to come up with different strategies to improve
the non-price factors
5. Availability of Substitutes
The substitute for low cost airline company is the railways. But
this substitute is not very powerful due to the following
reasons:
Customers use airline transport as it is convenient and saves
travelling time. So trains cannot work as a substitute to save
time.
Secondly, many customers use airlines as a status symbol. So
again, trains cannot substitute for prestige. So if we consider
IndiGo airlines, the direct substitutes are the other low cost
carriers likeSpiceJet and Go Air. So in this case, threat
of substitutes is high as the switching cost between low cost
carriers is low.
Opportunities
IndiGo airlines have not ventured into the huge air freight
market which can contribute a sizeable portion of the
revenue. A study by Centre for Asia Pacific Aviation or
CAPA
An aviation consulting firm estimates the cargo services of
3.4million tonnes per annum.
According to a research conducted by Phocis, Indian

domestic traffic will touch 86.1million by 2010,up from
32.2 million in 2007
.The flight density of IndiGo airlines is limited in domestic
market; hence there is a big scope to increase the flight
frequency
The huge untapped international sectors should be

explored once IndiGo has considerable presence in the
domestic market.
IndiGo currently does not have too many long haul
aircrafts and as per CAPA study by 2020, Indian Airports
are expected to handle more than 100 million passengers.
Indigo airlines should focus on long haul aircrafts both for
domestic and international sectors.
The chartered flight services still remain an area not
exploited by Indian aviation industry and IndiGo airlines
can play a major role in tapping the potential in that
particular market.
Opening up of international routes
Largest market share among LCCs in Indian Market
Middle class taking to the skies
Threats
ATF (Air Turbine Fuel) prices have increased radically since
2005
Foreign and private players often poach work-force of

competitors.
Extensive Government Interference can affect the
accountability of the organization. In aviation industry,
government has control over fuel prices, foreign
investments (e.g. FDI policies), tourism laws, taxes etc.
This can greatly affect the day to day business in the
airline industry.
Like every other industry, recession has hit aviation
industry as well. People have cut down on tourism and
corporate travels have also been slashed down.
The shortage of trained pilots, co-pilots and ground staff is
severely limiting the growth prospects of all the airline
companies.
Barriers to exit in aviation industry are high because of
high capital investment, nongovernment restrictions and
loss of brand image.
Internal Environment Analysis
Resources, Capabilities and Core Competencies are the key
elements of the Internal Environment. The resources are
tangible and intangible.
Tangible resources
Aircrafts:
The airline currently operates 120 daily flights with a fleet
of nineteen brand new AirbusA320 aircraft and flies to 17
destinations.
Human Resources:
The human resources are the pilots, crew members and
ground staff.2.
No airline can recruit a trainee pilot and directly assign
him to fly an airplane carrying around 500 passengers.
The labour-force has to be trained and then assigned with
tasks to perform after proper evaluation.
Fuel:
Porters five forces model does not cover the importance
of complementary product.
ATF is the complementary product for airplane and it
constitutes approximately 35%of the production costs.
Intangible resources
Brand Equity/Reputation
IndiGo is the most reputed low cost carrier due to the following
reasons:
On time arrivals is the key differentiating factor for IndiGo
Airlines.IndiGo keeps implementing new and innovative ideas to
increase the quality of customer service. Recent example
is: IndiGo has roving check-in counters where passengers
with only cabin baggage can check-in with an IndiGo official
with handheld device, rather than lining up at the check-in
counter.
It gives the customers the freedom to carry their own eatables
and snacks on board.
Compared to the direct competitors, that is, the other low cost
carriers like SpiceJet, Jetlite, etc. IndiGo offers the lowest airfare
Social Capital:
IndiGo has amicable relationship with the other organizations
that contribute to the value addition for the service provided to
the customers.
IndiGo has engaged many Travel web-portals and regional
travel agents with incentives like booking commissions, etc.
There have been no instances of distress between IndiGo and
its other collaborators, that is, suppliers.
Collaboration with hotels: Mumbai-based hotel chain operator
Sarovar Hotels and Indigo Airlines announced a marketing tieup for frequent travellers.
The arrangement will allow guests staying at select Sarovar
Hotels across 26destinations in India to avail a 10 per cent
discount on their next travel booking with Indigo.
While IndiGo flyers can avail up to 25 per cent discount on
published room tariff, 10 per cent discount on holiday stay
packages and 10 per cent discount on restaurant dining at
select Sarovar properties
.Hence IndiGo has a remarkable Social Capital.
Brand Awareness:
IndiGo is a well-known Low Cost Carrier in India. The following
points contribute to the brand awareness of IndiGo:
Advertising using print media like newspapers, billboards, etc.
It may not pay for an advertisement in a newspaper, but has
been covered in news for its low cost strategy implementation.
As IndiGo provides better value added services to the
customers, Word of Mouth promotion also works in its favour.
Employee Relationship:
Good Employee Relationship is a key factor to sustain
competitive advantage. Indigo provides several incentives to its
employees. As per the news article published in The Hindu
Business Line:
IndiGo officials claimed that they have been seeing a healthy
growth in passenger numbers and had no plans to defer
delivery of any of the 100 Airbus it has ordered. Hence, it is
clearly evident from the above statement that IndiGo is
optimistic about its long term growth. Also, it is planning to
expand its employee strength and at the same time there is no
indication of downsizing the current staff. Quoted below are
some comparisons about the different approaches implemented
by various airlines at the time of recession stated in the same
article: At a time when several domestic airlines are looking to
prune their staff strength, the Delhi-based low cost airline,
IndiGo, is on the lookout for more pilots, cabin attendants,
customer service and airport service agents. In the recent
past, both Kingfisher Airlines and Jet Airways have asked their
staff to leave. While Jet Airways offered a voluntary retirement
scheme to more than 300 of its
Staff, it was also planning to lay off about 1,900 of its staff. In
late September, Kingfisher announced that 300 employees had
parted ways with the company
.The above facts show that IndiGo has taken a positive
approach while dealing with its loyal employees at the time of
economic slowdown
Strengths
IndiGo has high brand awareness and brand equity.
Cost leadership: Successful implementation of low cost
strategy.
Highly efficient management that ensures high rate of ontime arrivals.
Continuous innovation to improve on non-price factors.
Tie-up with hotels.
Ease of ticket booking for customers.
Only LCC (low cost carrier) to make consistent profits
It has one of the major airlines in India in terms of market
share
LCC which has entered international markets has boosted
its brand value
Good advertising and marketing strategies have increased
its brand recall
Weaknesses
Scope of product differentiation is less.
Benefits of the innovations implemented by IndiGo to
provide better services to the customers are short-lived,
as these can be easily imitated by the competitors.
IndiGo is not exploring the untapped domestic air cargo
market.
Not on too many routes as compared to competitors
Still has to establish itself on international destinations

Feasible Alternatives
1. Increase domestic operation
There are a number of initiatives taken up by government to
encourage aviation industry,e.g., promotion of regional air
connectivityOpen Sky policyand policy of Greenfield airports
To expand air connectivity on Tier II and Tier III cities and to
promote regional air connectivity a separate category of
permit, Scheduled Air Transport (Regional) Services had been
introduced.
The `Open Sky' policy encourages the promotion of Regional
Airlines, lower fares to make aviation affordable and remove
price monopolies in respect of Aviation Turbine Fuel (ATF).
The Policy aims to have an approval mechanism for setting up
of new airports. Guidelines for granting technical approvals by
various agencies involved in setting up of an airport would be
provided upfront to provide clarity, Airport Authority of India
www.airportsindia.org.in
Airport infrastructure has been undertaken through the PPP
route in major metro cities like Delhi, Mumbai, Bangalore and
Hyderabad. Modernisation of the Kolkata and Chennai airports
is being undertaken by the AAI.For the non-metro airports AAI is
responsible for the airside development
. In addition to this, government has also made plans for the
development of airport infrastructure.35 airports have been
selected for this purpose, of these 24 airports would be taken
up for city side development through PPP including
maintenance and operation of the terminal buildings, cargo
operations and real estate development
.All these factors indicate towards a favourable environment for
growth in the domestic aviation sector. Hence it would be a
wise option for IndiGo to increase its domestic operations.
IndiGo must increase the number of destinations and can start
long haul aircrafts.
2. Extension
Currently, IndiGo is concentrating only in domestic passenger
flights. However, the freight/cargo market and charted plane
service are the areas that can prove to be good potential
market for IndiGo. As per the reports from an economic survey
this year, it was stated that domestic cargo showed a growth of
14.55%15. Besides, chartered flight services are an untapped
market for IndiGo. Thus, IndiGo has a huge opportunity to
expand in both these arenas
Final Recommendation
As inferred from the above two solution analysis, we
recommend that IndiGo must increase its domestic operations
by starting flights connecting to new destinations and long haul
flights. As the opportunities are vast for this purpose, the other
low cost carriers may also venture in this area. So using the
cost leadership strategy, IndiGo can gain competitive
advantage over its competitors as the first mover. Once the
above strategy is successful and results in promising revenue
growth, IndiGo cause extension to freight and chartered
services as the next objective for further expansion
INDIGO AIRLINES
www.goindigo.in
Toll Free : 18001803838 ( MTNL & BSNL)
Call Center : 09910383838
BANGALORE
DELHI - NCR ( GURGAON)
G17/20, Richmond Towers, Level -3, Tower-C, Global
12, Richmond Road,
Business Park,
Bangalore-560025
Tel: 080-22219810,
22219820,22126879
M.G. Road, Gurgaon - 122002

Tel : 0124-4352500
CHENNAI
144/145, MalavikaCenter,
Kodambakkam High Road,
Nungambakkam,
Chennai - 600034
Tel : 044-65272262,
65272272
GOA
City Business Centre, Coelho
Pereira Bldg,
Opp. The JummaMajod, Dada
Vaidya Road,
Panjim, Goa - 403001, Tel :
0832- 2235115
HYDERABAD
Ground Floor, 5-9-86/1,
Chapel Road,
Hyderabad - 500001
Tel: 040- 23211635
JAIPUR
101-106, Jaipur Towers,
M.I. Road, Jaipur - 302 011
Tel : 0141- 2370062
KOLKATA
Landmark, 228A, A.J.C.
Bose Road,
Kolkata - 700020
Tel : 033-40036208
MUMBAI
17, Jolly Maker Chambers - II
255, Nariman Point,
Mumbai - 400021
Tel : 022-22027083
PUNE
G14-17, Metro House,
7/B, Mangaldas Road,
Pune -411001
Tel:020-26050961
VADODARA
302, Capri House -2,
Jetalpur Road,
Vadodara - 390007
Tel: 0265- 2320419
Special Assistance :
1. Infant
2. Minors
Flying Solo Service

3. Pregnant Women
4. Safety Assistants
5. Customers with Sensory Impairment
(A)Visual Impairment
(B)Hearing Impairment
(C)Visual & Hearing Impairment
6. Service Dog
7. Mobility Assistance
8. Wheelchair users or Customers using wheelchairs, Crutches /
braces / other prosthetic devices
9. Spinal Support Equipment (SSE)
10. Traveling with broken limbs
11. Passengers with Psychiatric or Emotional disorders
12. Passengers having Autism or Intellectual Disability
13. Internal Devices
14. Portable oxygen concentrators( POC)
15. Customers with certain adverse medical conditions
16. Customer Grievance Redressal
17. Frequently asked Questions
Special/Disability Assistance
Seating accommodation & aircraft accessibility for passengers

with a disability:
We will do our best to allocate you a seat that is most suitable
to your needs, movable armrest for easy accessibility to the
seats However, in order to meet the safety requirements of the
DGCA, passengers with mobility issues which make it unsafe to
facilitate aircraft evacuations will not be given a seat in a
location where they would obstruct emergency exits, impede
the crew in their duties, obstruct access to emergency
equipment or hinder aircraft evacuation in case of an
emergency. To allow us to provide the best assistance, please
provide us with as much information as possible at the time of
your booking and or at the time of check-in
Lavatories:
A lavatory with a single panel door and additional grab bar is
available on all our aircraft. Our cabin crew can provide
assistance moving to and from the lavatory door(same as
above), but will not be able to assist the customer inside the
lavatory.
1. Infants
Age:
For safety reasons, children above the age of seven (7) days
and under the age of two (2) years as on the date of travel are
regarded as Infants. In the event of a failure to produce a valid
proof of age for the Infant, full fare as applicable on the date of
travel will be payable for the Infant and the infant will be
allowed to travel only subject to availability of seats.
Seating:
No extra seats may be booked for Infants.
Infants cannot travel in their own seat and must be seated in
an adult's lap.
Number:
A maximum of one infant per adult is allowed.

Fee:
For infants not occupying a seat a fee, as mentioned in
Annexure A, per sector is applicable and is inclusive of all taxes
including but not limited to applicable service tax, fees and
surcharges.
Baggage allowance
Infants are permitted a baggage allowance for hand Baggage
only for a maximum weight of 7Kgs
2. Minors:
Children above the age of two (2) and below the age of twelve
(12) years are regarded as Minors. Children aged between the
ages of 2 and 5 must be accompanied by a companion aged 18
years or more.
A child's journey under Flying Solo Service
As a child, travelling alone can be an exciting experience but a
parent would need to know and be assured that the child will be
taken care of.
IndiGo may, at its sole discretion, accept unaccompanied
minors, that is, children aged above5 and below 12 upon
payment of an additional fee as mentioned in Annexure A per
Sector:
At departure
Please make the child available at the airport at least 2 hours
prior to departure.
A parent or guardian is required to complete a signed form
(click here to download the form) at the point of check-in at
each departure airport prior to travel, which must include the
name and contact numbers for a parent or guardian (above the
age of 18) who will meet the unaccompanied minor at the point
of arrival;
Valid photo-ID for both the unaccompanied minor and the

parent or guardian is required at the point of check-in;
A staff member will take the child to the aircraft where our
cabin crew will then look after them.
The parent or guardian must remain at the airport until the
flight has departed.
On Board
During the flight our cabin crew will keep an eye on the child
and will make sure that they have everything they need.
Do not worry about the meal, as it is included on our Flying
Solo program.
To make sure that the child has a comfortable flight, the
parent is requested to pack medication, warm clothing and a
favorite toy or game in their hand baggage.
Transit/Transfer
If the stopover at transfer station is less than 6 hours and if
the child is booked through out on IndiGo, we shall be able to
accept the child under Flying Solo Services.
If the stopover at transfer stations is more than 6 hours
and/or involves night halt and/or transfer is on other airline
except IndiGo, we shall not be able to accept the child under
Flying Solo services. In such cases child must be accompanied
by someone who is above the age of 18 years in age.
Upon arrival
When the flight arrives, our ground staff will accompany and
assist the child through the airport arrivals process.
We will only release the child to the care of the nominated
adult, after checking their photo ID as per the details
mentioned in the form
Please be available at the arrival hall at least 30 mins prior

arrival to receive the child
Age of child
Availing Flying Solo
Under 5 years Flying solo is unavailable, the child MUST travel

with someone over the age of 18 years.
5-12 years
Book Flying Solo and can travel on all flights
13-18 years
The child can travel alone or we would be happy
to offer Flying Solo service.
3. Pregnant Women
GUIDELINES FOR PREGNANT LADIES FLYING WITH INDIGO
PREGNANCY (SINGLE AND UNCOMPLICATED) PERMITTED TILL
36 WEEKS, FIT TO FLY REQUIRED FROM 32 WEEKS ONWARDS
FIT TO FLY CERTIFICATE FROM TREATING GYNAECOLOGIST
NOT OLDER THAN 7 DAYS
PREGNANCY (MULTIPLE AND UNCOMPLICATED)
PERMITTED
TILL 32 WEEKS WITH FIT TO FLY FROM 28 WEEKS ONWARDS
FIT TO FLY CERTIFICATE FROM TREATING GYNAECOLOGIST
NOT OLDER THAN 3 DAYS
COMPLICATED PREGNANCIES PERMITTED ON INDIVIDUAL CASE
BASIS. NOT PERMITTED BEYOND 32 WEEKS AND FIT TO FLY
REQUIRED FROM 28 WEEKS ONWARDS FIT TO FLY
CERTIFICATE FROM TREATING GYNAECOLOGIST NOT OLDER
THAN 3 DAYS. MEDICAL CLEARENCE FROM COMPANY DOCTOR
REQUIRED.
EXPECTANT MOTHERS (RELEVANT CASES) ARE REQUIRED TO
PROVIDE FIT TO FLY CERTIFICATE FROM TREATING DOCTOR
STATING
WEEKS OF PREGNANCY
EXPECTED DATE OF DELIVERY
COMPLICATIONS IF PRESENT
PREGNANT LADIES BEYOUND 36 WEEKS ARE NOT PERMITTED

TO FLY
4. Safety Assistants
A Safety Assistant is any able-bodied person who assists the
customer with disability to exit the aircraft in case of an
emergency evacuation, or to establish communication with
cabin crew for the purpose of the required safety briefing.
Who can be a Safety Assistant
The safety assistant shall be at least 18 years old,

physically and mentally able and willing to evacuate the
disabled customer in case of an emergency
Seating of the Safety Assistant
The Safety Assistan will be seated next to the customer, in

order to assist in case of an emergency. If a safety assistant is
accompanying several customers with disability, the safety
assistant will be seated in the same row as the customer with
disability. In case seats are not available in the same row, then
the safety assistant is seated in the row immediately in front or
behind of the customer with disability.
Examples of requirement of a safety assistant:
Customers traveling in a stretcher - The safety assistant

must be a medical / paramedical escort. In selected cases
IndiGos internal physician may permit a non-medical Safety
assistant.
Customers with mental disability who are unable to

comprehend or respond appropriately to safety instructions,
including the regulatory safety briefing and any other safety
related instructions provided in the aircraft.
Customers with a mobility impairment so severe that the

person is unable to physically assist in his or her own
evacuation of the aircraft in case of an emergency.

Customers with severe hearing , vision impairments and
speech impairment , (all together) - if the customer cannot
establish some means of communication with the cabin crew
that is adequate both to allow transmission of the regulatory
safety briefing, and to enable the customer to assist in his or
her own evacuation of the aircraft in the event of an emergency
Any other disability which IndiGo, in its sole discretion

decides may affect the safety of the customer while on board
an aircraft
Customer Responsibility
We at IndiGo are highly committed to passengers safety and
convenience and making the best of efforts to ensure that all
our customers experience the finest of services on board our
planes. Having said that, it is pertinent to mention here that our
airline is still in an evolving stage. We have learnt to interact
with persons with disability flying with us, however, we are still
learning, constantly exploring, and finding ways to serve our
customers better.
At this stage, we are trying our best to gain expertise and
competence, thereby enhancing our teams awareness &
customer handling skills.
In order to make your journey comfortable, we solicit
passengers support and cooperation. For a passenger
travelling alone, should be able to perform the following
activities independently:
Requirements:
Fasten and unfasten seat belt?
Take out and put on the lifejacket?
Leave the seat and get to an emergency exit (this does

not need to be by walking)?
Put on an oxygen mask?
For certain passengers we express our special concern and

insist that they travel with a companion. Generally, the
passengers who are likely to need a companion are those who:
Have a severe learning or cognitive challenge which

prevents them from understanding or reacting to safety
instructions
Are hearing and visually impaired
Have a challenge that prevents them from moving without

assistance to reach an emergency exit.
5.Customers with Sensory Impairment
(A) Visual Impairment
Pre-requisite
If assistance is required within the airport, customer or his
representative shall intimate IndiGo about the type of
assistance required prior to the departure.
At the airport
IndiGo would request Customers with Visual Impairment to
check-in early for their flight for a hassle free experience If
customer declares independence in mobility within the airport
and doesnt require any staff for assistance, the customer must
ensure to be present at the designated boarding gate at the
boarding time advised to him verbally by the staff.
Do note that our boarding gates close 25 mins (domestic)

and 45mins (international) prior to the scheduled departure
time, post which boarding is not allowed.
Also note since some the airports are silent airports there
would not be any sort of announcements made.
The customer is welcome to board the aircraft at leisure;
however if requested to the staff at the departure gate, the
customer will be able to board first, the staff at the boarding
gate shall assist you in boarding first.
On board
Every IndiGo aircraft comes equipped with Safety Briefing
Cards printed in Braille for our customers who have vision
disabilities.Our cabin crew will read the meal menu options,
identify food items and placement on the tray and assist with
opening the food package upon request. . Our cabin crew will
not be able to provide any assistance in feeding such customer
Due to safety regulations, the customer with visual

impairment will not be allocated an exit row seat.
(B) Hearing Impairment
Pre-requisite

assistance required prior to the departure.
At the airport
IndiGo would request Customers with Hearing Impairment

to check-in early for their flight for a hassle free experience.
If customer declares independence in mobility within the

airport and doesnt require any staff for assistance, the
customer must ensure to be present at the designated boarding
gate at the boarding time mentioned on their boarding pass.
Also note most of the airports are equipped with electronic
flight display, however, the nearest IndiGo staff can always be
contacted for any assistance required.
Do note that our boarding gates close 25 mins ( domestic)

and 45mins (international) prior to the scheduled departure
time, post which boarding is not allowed.
The customer is welcome to board the aircraft at leisure;

however if requested to the staff at the departure gate, the
customer will be able to board first. The staff at the boarding
gate shall assist you in boarding first.
On board
Due to safety regulations, the customer will not be

allocated an exit row seat.
(C) Visual and Hearing Impairment

Pre-requisite

assistance required at least 48 hours prior to the departure.
For customers safety, they will need to travel with a

safety assistant if they need help to do any one of the
following:
Fasten and unfasten your seat belt
Take out and put on your lifejacket
Leave your seat and get yourself to an emergency exit (this
does not need to be by walking)
Put on an oxygen mask
Establish communication with crew with regards to safety
briefings and react to safety instructions
If you are required to travel with a companion, IndiGo will sell
them a ticket at the same fare as that paid by the first
passenger, even if rates have increased in the meantime. It
may also be possible to find another passenger on the flight
willing to take the role of an accompanying person for
emergency purposes but this cannot be guaranteed6.Service
Dogs:
When to inform:
Customers with sensory impairment intending to travel with
their guide dog, should make their reservation via the IndiGo
call centre and provide us notice of at least 48 hours prior to

departure, that a guide dog will be travelling.
Seating of the guide dog
Please note that guide dogs for our sensory impaired
customers shall not occupy any seat.
Customers with guide dog will be seated on the first row.
Documentation Required
The customer must produce complete and valid
documentation including but not limited to identification cards
to prove that the guide dog is a service animal and has all valid
permissions including confirmation that it is trained from an
appropriate institution
The certificate of vaccination of the guide dog shall be
produced at the time of check-in.
Hygiene/travel requirements of a guide dog
The customer is required to bring a moisture absorbent mat,
to place it under the guide dog. Further, the guide dog should
be properly trained, restrained, muzzled and vaccinated
A guide dog may be denied boarding or removed from the
flight if, IndiGo in its sole discretion decides that the animal
cannot be contained by the customer or otherwise exhibits
behavior that poses a threat to the health or safety of others on
board.
Customer shall be fully responsible for the guide dog. A meet
and assist service can be provided, if assistance is required at
departure and on arrival, on prior request
Only for International:
If travelling into India or out of India, the guide dog must
meet the requirements of the destination country
7. Mobility Assistance:
IndiGo would be more than happy to provide a wheelchair as

per your requirement. In order to ensure the service meets your
needs, our reservation team or the airport staff may ask you
some questions to determine the level of assistance you
require.
IndiGo wheelchair service is provided with an attendant at no
additional charge to you. The attendant will assist in
transporting you within the airport area and to the gate or the
aircraft door (depending on the airport facilities).
Our team is trained in transferring techniques and can assist
if you are unable to transfer by yourself from the wheelchair
to/from your seat;
Whilst we will do everything we can to help our customers to
their onward flight, they are requested to be aware that there
might be a delay in assisting them during busy periods.IndiGo
shall not be liable for any such passenger missing onward
flights, we would always advise them to factor in delay times
when making their travel plans.
Our employees are trained to assist our customers with
disabilities and for any sorts of limitations, we offer a wide
variety of Special/Disability Assistance.
Please be aware that there might be unpredictable
circumstances such as weather or mechanical problems that
may call for a last minute unavoidable change, but we will do
our best to accommodate your needs.
If you are travelling in a group of 10 or more people and
require wheelchairs, please contact 0124 6613838 at least 48
hours before scheduled departure
Please contact us either through this web site or by
contacting our agents on 0124 6613838
IndiGo does provide the following facilities to its Customers with
reduced mobility:
Assistance in moving to and from seats; and

Help in preparation for eating.
However, we express our inability to provide customers with
any assistance for personal care needs on-board, such as,
eating/drinking, administration of medications, assistance
inside the lavatory, or other personal care needs. If assistance
is required with any of these, we recommend a Safety
Assistant.
8. Wheelchair users or Customers using wheelchairs, Crutches /
braces / other prosthetic devices:
Before travel
We want our customers to be as comfortable as possible on
their IndiGo flight. Our staff will be pleased to discuss their
needs, so call us and we'll help you plan your travel
Traveling with own wheelchair
If customers wish to check-in their own wheel chair, IndiGo
shall provide assistance to dismantle and/or reassemble the
wheelchair under the supervision of the customer. However
IndiGo shall not be liable for any damage arising while handling
the wheelchair. Such checked in wheelchair will be returned to
the customer at the destination airport
If the customer wishes to use their own wheelchair at the
airport, they are permitted to do so up to the aircraft,
whereupon it will be stored in the hold area.
In the event of loss or damage, mobility aids or any
equipment relating to the disability which are placed into the
checked are luggage is not covered for anything more than the
maximum liability under IndiGos Conditions of Carriage.
We recommend suitable travel insurance for any equipment
carried along
Customers are allowed to use their own crutches, braces

and / or other prosthetic devices up to the aircraft, and may
board withsuch items as hand baggage, provided the
customers are dependent on them.
Customer with a disability may use their own manual
powered wheelchair till the aircraft door
Unfortunately electronic powered wheelchair(s) with a wetcell battery shall not be accepted since its corrosive in nature
and is considered to be a Dangerous Good
Unfortunately electronic powered wheelchair(s) with lithium
or non spillable battery shall not be allowed beyond the checkin counter, due to security reasons
Electronic wheelchairs will be dismantled at our check-in
counters and the customer needs to carry something to seal
the battery terminals to avoid damage to the battery
Airport Wheelchairs
We have wheelchairs available for use at all airport locations to
assist with transportation from check-in to the boarding gate,
making connections (if applicable) and from the aircraft to the
arrivals hall at the destination. Customers can request this
service when making their booking, and upon arrival at the
airport they can notify one of our airport service agents about
their wheelchair requirement. For an hassle free experience
customers shall notify IndiGo at least 48 hrs prior departure
Safety Assistant
On board
If a customer is travelling without safety assistant, IndiGo
shall be happy providing below mentioned assistance:
will be able to extend a meet and assist service to the
customer to assist in boarding, deplaning, flight connections
and check-in / transfer / reclaiming of checked-in bags.
stowing their hand baggage

opening any parts of customers on board meal.
on board individual safety briefings if requested by customer
IndiGo regrets its inability to assist with following,
assist the customer with personal care and toileting needs
before, after and during the flight.
At destination
If the wheelchair has been stowed in the hold, we'll make
every effort to return it to the customer as close to the aircraft
door as possible. If this is not possible, we will make sure there
is a wheelchair available to assist customer to the baggage
reclaim area
We can arrange assistance between the gate and the arrivals
hall if the customer would like this service. Depending on the
airport, this will either be by electric buggy, airport wheelchair
or accessible buses.
9. Spinal Support Equipment (SSE):
Customers must bring their own spinal support equipment
and should be fully responsible for installation, usage and
removal.
Customer-supplied spinal support equipment will be carried
free of charge.
If you are planning to travel with Spinal Support Equipment,
we recommend that you please contact us on0124 6613838 , at
least 7 (seven) working days prior to departure and inform us of
your SSE specifications.
Our Engineering team will then check to ensure that your
equipment can be accommodated safely in the aircraft.
10. Travelling with broken limbs
All customers with a mobility problems such as fractured legs

in plaster or paraplegics will preferably be allocated seats
which will allow maximum space for their comfort, subject to
load factor
All customers with limbs in plaster casts shall preferably be
accommodated in seats near toilets and floor level exits
provided with slide/raft (not emergency exit row seats).
11. Passengers with Psychiatric or Emotional disorders:
Passengers with psychiatric or emotional disorders shall
always travel with a safety assistant.
The safety assistant shall carry the treating physicians
certificate along with a prescription for a sedative medicine,
which may be administered by the attendant, prior to
commencement of travel or as may be required en-route.
12. Passengers having Autism/ Intellectual disability/Dementia /
Alzheimer's and Down syndrome :
Customerswith Autism/Intellectual
disability/Dementia/Alzheimer's and Down syndrome need to
book their flights at least 48hrs prior departure by call our call
centre at 09910383838
While making the reservation, please advise us about your
specific requirements and the best way to approach and assist
in travel
Autism/ Intellectual disability/Dementia / Alzheimer's and
Down syndrome customers will be given time to settle in their
seat before other customers board the aircraft.
Our customer service and cabin crew team will provide all the
assistance required other than the ones provided by a safety
assistant
IndiGo offers
Assistance, upon request, from the ticket counter till the aircraft
seat shall be provided . In addition, meeting their family
member at the gate upon arrival is also available. These
requests need to be made at the ticket counter at check-in. The
name of the person picking up the customer must be
communicated at the time of check-in as well.
13. Internal Medical Devices:
If you are travelling with an internal medical device, such as a
pacemaker or a defibrillator, kindly inform us while making the
reservation and also at the airport, to the security personnel
conducting your screening, before the process begins.
14. Portable oxygen concentrators ( POC)
Only Portable Oxygen Concentrator (POC), approved by
Federal Aviation Administration (FAA) is permitted on board
IndiGo flights either as checked-in or hand baggage, free of
cost, subject to following conditions being met:
A request for carriage or use of the POC on board being made
by the Customer to IndiGo a minimum forty eight (48) hours in
advance from the scheduled departure time;
POC should not cause any interference with the electrical,
navigation or communication equipment on board;
Passenger carrying the POC on board must comply with all
security requirements and instructions communicated by the
Crew, from time to time;
Passenger alone will be solely responsible for packing,
assembling, dismantling or facilitating administration of POC
both on ground and on board. IndiGo will under no
circumstances be liable or responsible for the same.
Notwithstanding anything contained herein, IndiGo, in its sole
discretion, reserves the right to refuse carriage of the POC, if it
is likely to endanger the safety of the aircraft or of any person;
If POC is to be carried as checked-in baggage:
For safety purposes, Customer must ensure that the POC prior
to check in is empty and free of pressure. Thus, if the POC was
used before coming to the airport, then the Customer must to
reset the POC to avoid any residual oxygen in the equipment;
If POC operates on lithium battery, battery should be
removed and carried by Customer as hand baggage. If POC
operates on any other type of battery, battery should be
removed and packed separately in such a way that battery
terminals do not come in contact with any metal objects.
Carriage of such batteries will further be subject to applicable
regulatory requirements including but not limited to those
mentioned under the Aircarft (Carriage of Dangerous Goods)
Rules, 2003, International Civil Aviation Organization (ICAO)
Technical Instructions for the Safe Transport of Dangerous
Goods by Air, the International Air Transport Association (IATA)
Dangerous Goods Regulations.
If POC is to be carried as hand baggage:
Customers carrying/using the POC on board shall be assigned
only a window seat, except on rows 1,12 & 13. Such customers
shall not be seated on middle or aisle seats. IndiGo reserves
rights to change seats of such customers, if required.
Such customers must be capable of seeing, hearing and
understanding the POC device warnings and should be in a
position to take appropriate action, without assistance, in
response to those warnings;
During taxi, take-off and landing the POC, if being used must
be stowed under the seat in front.
During an unlikely event of decompression(means in case of
decrease of cabin pressure)
Passengers must wear the oxygen mask from the overhead

panel as a primary source of oxygen and not their POC, as the
oxygen mask would ensure a continuous flow of oxygen and
would also minimize the chance/ effects of decompression

sickness.
IndiGos has a list of FAA approved POCs, such list is indicative
and not exhaustive. Please call our call centre or airport
operation to clarify if your POC is approved for carriage in our
aircraft
15. Customers with certain adverse medical conditions:
Customers who are ailing from any particular medical
condition can travel on IndiGo after giving prior information
regarding his/her medical condition, at least 72 hours prior to
the scheduled departure of the flight, as per the medical form
provided on IndiGo Website, in order for IndiGo to provide
complete assistance to such Customer.
The Customer must also inform IndiGo regarding any
hospitalization requirement upon arrival.
In case a Customer will be accompanied by a safety assistant
during travel then his/her name and contact details must also
be shared with IndiGo.
IndiGo would want to mention that its cabin crew are not
authorized to give special assistance (e.g. lifting etc.). Further
they are trained only in first aid and are not permitted to
administer any injection or to give medication. IndiGo neither
facilitates nor allows carriage or usage of oxygen cylinders on
board.
A customer who has agreed to this Conditions of Carriage
agrees and understands that he/she has accepted to undertake
the travel on IndiGo on his/her own will and volition and further
agrees that IndiGo will not be responsible for any liability other
than the liability as specified in the Conditions of Carriage.
Customers requiring stretchers
To make a Booking for such Customers, requests need to be

placed no later than 72 hours prior to the scheduled time of
departure of the flight.
Customers are required to take a print-out of the IndiGo
medical form click here, available on the Website, and have the
same filled out by the Customers treating physician, prior to
making the Booking, and then fax the same to 0124-4068536.
Customers are required to include their Booking
confirmation / PNR number on the fax and the travel Itinerary to
ensure correct processing. Based on an assessment of IndiGos
internal physician, a Booking confirmation will be
communicated to the Customer within 24 hours of receipt by
IndiGo of the fax.
Please note that IndiGo reserves the right to have an IndiGo
medical representative meet the Customer at the airport on the
date of travel to determine the Customers medical fitness for
travel on that date. The applicable Charges will be for nine (9)
seats at the prevailing fare, plus a handling fee as mentioned
inAnnexure A..
Our customer service and cabin crew team will provide all the
assistance required other than the ones provided by asafety
assistant
16. Customer Grievance Redressal
At IndiGo we strive for utmost customer satisfaction and the
teams have been trained to deliver highest level of customer
satisfaction. However in the event should you feel dissatisfied
about something please dont
hesitate to reach out to us so that we can make things right if
they werent. We are reachable to you in more than one way:
Call Center: Call 09910383838 or +911246613838
Email:
Nodal Officer: Siddharth Biswakarma
Email: NodalOfficer@GOINDIGO.IN
Appellate Authority: Priya Kataria
Email: AppellateAuthority@GOINDIGO.IN
Contact: +91 124 661386customer.relations@goindigo.in
OR
Our Customer Services Manager at various airports shall be
more than happy to help you.
17. Frequently Asked Questions
1. I am visually impaired and will be carrying a white cane with
me, how shall I inform the airlines?
Kindly contact us at 0124 6613838 if you have any assisting
devices. We will find out the best way to store them so they
arrive without damage. At the airport, please let the check-in
personnel know that you may need extra time to board the
plane. After the plane has landed, kindly wait in the plane until
you see or have your assisting device, wheelchair, etc.
2. I am visually impaired, can I travel with my guide dog? If yes,
what are the formalities involved?
We will make special arrangements for your Guide/Assistance
Dog, to ensure they are able to travel with you in the aircraft
cabin. Certified Assistance Dogs for blind passengers can travel
free of charge in the aircraft cabin. Notify us at 0124 6613838
when travelling with a Guide/Assistance Dog at the time of
booking as the number carried on each aircraft is restricted
(please refer to our disability assistance page for more
information).
3. I will be carrying my own motorized wheelchair, can you
advise how shall I go about it?
We will require the dimensions, weight, type of tires, type of
batteries, etc. of your wheelchair. We suggest you carry spare
batteries. Wheelchair BATTERY may be disconnected due to
safety reasons and wet cell batteries are not allowed to be

carried on an IndiGo flight. Kindly inform your travel agent/us
about any assisting devices you may need or already have like
canes and crutches.
4. If I will be traveling through different time zones, how will jet
lag affect my situation?
The following should be taken care during your trip: upper body
strength, communication ability, speech issues, voice issues,
vision problems, hearing problems, heat issues, medication
needs, oxygen requirements, and dietary requirements. Make
sure you carry your medications and back-up prescriptions with
you on the plane, along with the doctors' name, address, fax
number for faxing prescriptions, phone numbers, medical
diagnosis, names and dosages of medication you're taking and
any allergies you may have.
5. How long does it required to apply for a stretcher service in
advance?
The seats of the stretcher passenger shall be reserved no later
than 72 hours before take-off. In special circumstances, the
application of the stretcher passenger submitted within 72
hours before departure can be accepted after it is confirmed by
IndiGo. The stretcher passenger must be accompanied by at
least one doctor or paramedic. If the doctor certifies that the
patient doesn't need medical care during the trip, the
passenger can also be accompanied by family members or
guardians. Currently we have stretcher facilities on our
domestic flights.

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Indigo Airlines

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Strategic Management Indigo Airlines

SUBJECT: Strategic Management

TOPIC: Indigo Airlines

Class: S.Y.B.M.S. (B)

launched between New Delhi and Dubai on 1 September

the local MRO providers making them unfavourable when

experience at fares that are always affordable. It was awarded

Commenc 8 April 2006

Headquart Gurgaon, Haryana, India[2

Rakesh Gangwal, Founder

IndiGo is a low-cost airline headquartered at Gurgaon, India. It

commence operations in mid-2006.[7] IndiGo took delivery of its

Corporate affairs and identity[edit]

IndiGo uses as an Indigo-sky blue livery as seen in the Airbus

after completing five years of operations. [32] IndiGo's first

IndiGo operates an all Airbus A320 fleet

The Airbus A320neo family aircraft ordered in 2011 were to

New aircraft orders[edit]

An Airbus A320 in IndiGo colors before delivery at Toulouse

Awards and achievements[edit]

Best low-cost carrier by the Airline Passengers Association

Best low cost carrier (2010, 2011, 2012, 2013, 2014) by

Best LCC Aviation award for excellence by Centre for Asia

List of airlines of India

List of companies of India

^ Jump up to:a b c "About IndiGo, profile". IndiGo.

^ Jump up to:a b "IndiGo profit at record high, sees

Jump up^ "Owner of India's biggest airline files for

Jump up^ Padnis, Anees (16 November

Jump up^ "FIPB approves proposal to convert

^ Jump up to:a b "IndiGo Airlines to fly soon". The

Jump up^ "IndiGo takes delivery of its first brand

^ Jump up to:a b "Indigo's first flight to take-off on

Below are the key factors of the business model of IndiGo

the aviation industry of India. Hence, using the external

Indian domestic sector

On Time Performance, Lowest Price

Cost Conscious Passengers

Lower Middle Class / Middle Class

Low Cost No Frills

The objective of this report is to study the external environment

IndiGo says passenger safety its mission

IndiGo was responding to reports which said the financial audit

IndiGo to go ahead with fleet expansion

The company had defended itself by saying the FDTL violation

To be honest, we really didnt want this ad to be on this side

practically no levity. Outstanding cinematography, super

Glamour of the airlines:

1. Threat of New Entrants

In aviation industry the major entry barriers can be:

Chairman and at least two thirds of its Directors are Indian

An airline company will bear the cost

Any airlines in general face a duopoly of two major suppliers of

The suppliers are few and thus in better position to

Switching cost of customers is high for low cost carriers,

Model. Go Air operates four A320 aircraft with a single class,

According to a research conducted by Phocis, Indian

The huge untapped international sectors should be

Foreign and private players often poach work-force of

Still has to establish itself on international destinations

M.G. Road, Gurgaon - 122002

Flying Solo Service

Seating accommodation & aircraft accessibility for passengers