Indigo gives high importance to three pillars of success; low fares, on-time,

and hassle-free experience. Its aircraft do not carry a business class, unlike
other airlines; nevertheless, many business travelers still prefer Indigo due to
its high on-time performance. Indigo prefers to keep it simple and exploit the
advantages of being a low-cost carrier. They don’t provide free meals like Air
India. Also, they unapologetically charge extra for all additional services
gly focuses on on-time performance, and its operational processes
are designed to minimize delays and ensure that flights operate on
time

Continuous innovation for customer

convenience

As compared to most other low-cost airlines in India, IndiGo has the

most clutter-free interface.

By being one of the first to introduce customer-assisted garbage

collection, the airline almost set a trend for keeping flights clean.
In 2014, the company pioneered the adoption of stairlifts and later
step-less boarding ramp that allows wheelchairs and stretchers to be
taken right into the aircraft effortlessly.

Key strategies that make Indigo a lower cost and

on-time airline company
 Short-haul & point to point route structure, a common fleet with
single class seat configuration, and high employee productivity.
 Lower aircraft acquisition costs achieved through bulk purchase
strategy. Last year in October 2019, it placed an order for 300
 A320 Airbus aircraft, making it one of the largest aircraft orders
with a single airline operator.
 Lower maintenance cost due to newer and single type aircraft
strategy
Indigo has very high on-ground efficiency with a turnaround time of 20
minutes. It has achieved this by taking a couple of measures such as defining
work for every minute, whether between the time-of-flight arrival or flight
departure. Every minute has some work assigned. This tight schedule helps in
clearly specifying each individuals’ roles and bringing greater efficiency.

digo follows a Sales and Leaseback model, i.e. once it buys these
aircrafts on heavily discounted prices, it then sells them to an
airplane leasing company (which is usually a big multinational bank)
for a higher price.

It then leases the same aircraft back from them for 6-7 years
max, paying a monthly / annual premium for the same.
Indigo is expected to make a profit of $8 – $10 million per aircraft, by buying in
discounted bulk from Airbus and selling it to lessor for a higher price.
Through leasing and not buying these aircrafts, it can:
· Conserve cash in short-term as no upfront payment is needed
· Keep airline’s books debt free to improve key financial ratios,
· The risk of aircraft running obsolete is passed on to the lessor and Indigo
relieves itself of finding a new buyer for their old and technologically out dated
aircraft post 10 -15 years it’s buying date
Lessor also has a win-win situation, these are usually big multinational banks looking
to make a premium earning risk free investment. And airlines usually end up paying
more in long run through premiums, in the lieu of saving cash for short run.
This is crucial for them, as they believe owning single type of aircraft
reduces time and training costs for maintenance crew, cabin crew
and pilots, as compared to doing that for 2-3 different types of
aircrafts in a fleet.

Owner of Indigo airlines, Interglobe Aviation

One of the most important efforts to measure service quality is the SERVQUAL
instrument given by Parasuraman et al. (1988). They developed a service quality model based
on gap analysis. Service quality can be measured by identifying the gaps between customer’s
expectations of the service to be rendered and their perceptions of the actual performance of
the service (Parasuraman et al., 1988). SERVQUAL is based on the five dimensions of
service quality namely: tangibility, reliability, responsiveness, assurance and empathy
(Parasuraman et al., 1988 RATER.

 Tangibility: Modern fleet and user-friendly facilities.

 Reliability: Excellent on-time performance.
 Responsiveness: Prompt customer service and issue resolution.
 Assurance: Emphasis on safety and professionalism.
 Empathy: A customer-centric approach that caters to diverse needs and
preferences.
IndiGo's operational efficiency has contributed to its reputation as one of India's
leading airlines, providing a positive customer experience and meeting or exceeding
customer expectations in various dimensions of service quality.

1. Tangibility:
 IndiGo is known for its modern and well-maintained fleet of aircraft,
which often leads to greater passenger satisfaction. The clean and
comfortable interiors of their planes contribute to a positive passenger
experience.
 The airline's online booking system, mobile app, and website are user-
friendly and provide a seamless booking experience.
2. Reliability:
 IndiGo has a remarkable track record for on-time performance. It
consistently ranks high in terms of punctuality, ensuring that
passengers can rely on their schedules with minimal disruptions.
 The airline's efficient baggage handling and quick turnaround times
between flights contribute to reliability.
3. Responsiveness:
 IndiGo is responsive to passenger needs by offering various channels
for customer support, including a dedicated customer service team,
online chat, and a mobile app for booking and support.
 The airline's proactive communication during delays or schedule
changes helps manage passenger expectations and minimizes
inconveniences.
4. Assurance:
 IndiGo places a strong emphasis on safety and security. The airline
maintains a robust safety record and invests in crew training and
maintenance to ensure passenger confidence.
 The professionalism of IndiGo's flight attendants and ground staff
further assures passengers of their safety and comfort.
5. Empathy:
 IndiGo's customer-centric approach focuses on understanding and
catering to the diverse needs of passengers. The airline offers various
services and amenities, including special assistance for passengers with
different requirements.
 IndiGo's "6E Tiffin" service, which allows passengers to pre-order meals,
reflects their empathy toward passengers' food preferences.
tional management:

1. High On-Time Performance (OTP):

 IndiGo consistently maintains one of the highest OTP rates in the
industry. Their performance is closely monitored, and they have a
meticulous turnaround process, allowing quick aircraft boarding and
departure.
 In 2021, IndiGo was ranked as the world's fourth most punctual major
airline, with an OTP of 81.7% (according to OAG Aviation).
2. Aircraft Utilization:
 IndiGo efficiently utilizes its aircraft. On average, their planes are in the
air for more than 11 hours per day, which is significantly higher than
the industry average.
 This efficient utilization of assets helps maximize revenue and minimize
costs.
3. Lean Operating Model:
 IndiGo follows a lean and cost-efficient operating model. They have a
single aircraft type (Airbus A320), which streamlines maintenance and
training.
 This focus on operational simplicity reduces complexity and enhances
efficiency.
4. Just-In-Time Maintenance:
 IndiGo employs a just-in-time maintenance approach. They perform
quick turnaround checks to minimize aircraft downtime and conduct
deeper maintenance checks during non-peak hours.
 This approach reduces the number of aircraft grounded for
maintenance.
5. Cost Leadership:
 IndiGo is a leader in cost efficiency. They have consistently reported
lower operating costs compared to their competitors. This cost
leadership is attributed to factors like fuel-efficient aircraft, high aircraft
utilization, and streamlined operations.
 In 2020, IndiGo's cost per available seat-kilometer (CASK) was $0.048,
significantly lower than the global industry average.
6. Digital Innovations:
 IndiGo has invested in digital innovations, such as self-check-in kiosks
and a robust mobile app. These technologies streamline passenger
processes, reducing waiting times and improving overall operational
efficiency.
  The introduction of a contactless boarding process during the COVID-
19 pandemic further demonstrated their commitment to passenger
safety and operational efficiency.
7. Effective Supply Chain Management:
 IndiGo has a well-managed supply chain, ensuring the timely delivery
of aircraft parts and materials. This minimizes aircraft downtime due to
maintenance issues.
 Efficient supply chain management is crucial for keeping their fleet in
the air.
8. Crew Efficiency:
 IndiGo's crew scheduling is optimized to ensure compliance with
regulatory requirements while maximizing crew efficiency. They aim to
minimize idle time for their flight and cabin crews.
 Crew efficiency plays a significant role in reducing operating costs.

In conclusion, IndiGo Airlines excels in operational management by achieving

industry-leading OTP, efficient aircraft utilization, cost leadership, and a strong focus
on streamlining processes. These operational excellence strategies contribute to
IndiGo's competitive advantage in the aviation industry and underscore their
commitment to providing a top-notch travel experience for passengers.