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Indigo is India’s largest passenger airline with a market share of 41.3% as of June, 2018. They
primarily operate in India’s domestic air travel market as a low-cost carrier with focus on Their
three pillars – offering low fares, being on-time and delivering a courteous and hassle-free
experience. Indigo has become synonymous with being on-time.
Since their inception in August 2006, they have grown from a carrier with one plane to a fleet
of 175 aircraft today. A uniform fleet for each type of operation, high operational reliability and an
award winning service make them one of the most reliable airlines in the world. They currently
operate flights to 55 destinations – 46 domestic and 9 international.
For successes they follow some strategies to compete with Jet airways and Kingfisher,
Indigo's stuck to its low-cost, single class model unlike rivals Jet and Kingfisher
Selling and leasing back planes helps its balance sheet
Quality and detail key to good service
It's all about customer focus
Using technology smartly
A Delhi-bound IndiGo flight from Goa, carrying 183 passengers and three infants on board, was
forced to return and make an emergency landing at the Dabolim airport, due to low oil pressure
in one of its engines
India's largest airline IndiGo, which flies four out of every 10 Indians, has had to replace Pratt &
Whitney engines on its 32 A320 Neo aircraft at least 69 times in the period May 2016-
November 2017 which resulted in cancellation of , a total of 776 flights between March 13 and
April 2
STAFF MISBEHAVIOUR
Acquisition For Expansion: Kingfisher airlines acquired the Air Deccan for the sake of
expansion, as per the international airline policy, any airlines should have minimum five years
of domestic experience in their respective area to get the international routes license, for the
sake of international route license Kingfisher acquired the Air Deccan, they never tried to
syndicate these two companies to improve their profits with its merger.Without stabilizing in the
domestic market to know the ground realities of the airlines industry, Kingfisher stepped into
the international routes where the competition is very high compared to the domestic airways,
when they planned about the international routes they hardly have three years of experience,
acquisition and expansion these two factors started throwing kingfisher into downfall.
Economic Slowdown: Another external factor for the Kingfisher downfall is economic
slowdown in 2008, Kingfisher first started its international route from Bangalore to London in
2008, same year recession affected the whole world, which is indirectly affected the air travel
occupancy in international routes, because of the recession, airplane fuel prices raised, airport
charges for landing are very costly in international airports around the world, all these external
factors caused the Kingfisher airlines to downfall.
Lack of Management: There was no single CEO continued for one year in Kingfisher airlines,
there was a frequent change in the top level management, Mr. Vijay Mallya never taken any
serious interference in day-to-day operations, Kingfisher was a gift to Siddarth Mallya(son of
Vijay Mallya) by his father on his birthday, Siddarth Mallya doesn’t have the maturity age to run
the airlines business because he is so busy in making Kingfisher Calendar.The company not
even thought of making Mr. Gopinath (Ex founder of Air Deccan) as CEO of the Kingfisher
airlines to bring the company into a profitable business, lack of proper expertise and experience
in the airline industry, lack of management caused the downfall of kingfisher airlines.
High Operational Cost: Operational costs of the airline industry are very high compared to any
industry, companies have to buy the licenses for the routes, companies should invest in the
aircraft maintenance, salaries for the employees are very high. Airports charges fees for
landing and parking, aircraft fuel frequently changes as per the international crude oil rates, the
government collects huge taxes from the airline companies, there is a lot of competition
between airline companies, all these high operational costs without good profit margin caused
the Kingfisher to downfall.