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Introduction

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


largest airline in India by passengers carried and fleet size, with a 38.7% market
share as of July 2017. It is also the largest individual Asian low-cost carrier in terms
of jet fleet size and passengers carried, and the eighth largest carrier in Asia with
over 41 million passengers carried in 2016. The airline operates to 46 destinations
both domestic and international. It has its primary hub at Indira Gandhi International
Airport, Delhi.
The airline became the largest Indian carrier in passenger market share in 2012.
The company went public in November 2015.
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 mid-2006. 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.
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.
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.
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 Carrier In 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.

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.

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.JetKonnect