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    Interglobe Aviation LTD., Doing Business As Indigo, Is An Indian

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    Kasturi P
    IndiGo is India's largest passenger airline with a 53.5% market share as of October 2021. It operates as a low-cost carrier focusing on low fares, on-time departures, and providing a hassle-free customer experience. IndiGo has many strengths including its large market share and brand awareness, but also faces threats from new competitors entering the market with lower fares. IndiGo operates on the majority of domestic routes in India, with a monopoly on 36.5% of routes and over 50% capacity share on 88.5% of routes, giving it significant pricing power over competitors. However, such a dominant position could raise concerns from governments if IndiGo became anti-consumer

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    Interglobe Aviation LTD., Doing Business As Indigo, Is An Indian

    Uploaded by

    Kasturi P
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    IndiGo is India's largest passenger airline with a 53.5% market share as of October 2021. It operates as a low-cost carrier focusing on low fares, on-time departures, and providing a hassle-free customer experience. IndiGo has many strengths including its large market share and brand awareness, but also faces threats from new competitors entering the market with lower fares. IndiGo operates on the majority of domestic routes in India, with a monopoly on 36.5% of routes and over 50% capacity share on 88.5% of routes, giving it significant pricing power over competitors. However, such a dominant position could raise concerns from governments if IndiGo became anti-consumer

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    Indigo

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    IndiGo is India's largest passenger airline with a 53.5% market share as of October 2021. It operates as a low-cost carrier focusing on low fares, on-time departures, and providing a hassle-free customer experience. IndiGo has many strengths including its large market share and brand awareness, but also faces threats from new competitors entering the market with lower fares. IndiGo operates on the majority of domestic routes in India, with a monopoly on 36.5% of routes and over 50% capacity share on 88.5% of routes, giving it significant pricing power over competitors. However, such a dominant position could raise concerns from governments if IndiGo became anti-consumer

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    93 views4 pages

    Interglobe Aviation LTD., Doing Business As Indigo, Is An Indian

    Uploaded by

    Kasturi P
    IndiGo is India's largest passenger airline with a 53.5% market share as of October 2021. It operates as a low-cost carrier focusing on low fares, on-time departures, and providing a hassle-free customer experience. IndiGo has many strengths including its large market share and brand awareness, but also faces threats from new competitors entering the market with lower fares. IndiGo operates on the majority of domestic routes in India, with a monopoly on 36.5% of routes and over 50% capacity share on 88.5% of routes, giving it significant pricing power over competitors. However, such a dominant position could raise concerns from governments if IndiGo became anti-consumer

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    Introduction

    InterGlobe Aviation Ltd., doing business as IndiGo, is an Indian low-cost airline headquartered


    in Gurgaon, Haryana, India.

    The airline was founded as a private company by Rahul Bhatia of InterGlobe


    Enterprises and Rakesh Gangwal in 2006. It took delivery of its first aircraft in July 2006 and
    commenced operations a month later. The airline became the largest Indian carrier by passenger
    market share in 2012. The company went public in November 2015.

    IndiGo is India’s largest passenger airline with a market share of 53.5% as of October, 2021. We
    primarily operate in India’s domestic air travel market as a low-cost carrier with focus on our three
    pillars – offering low fares, being on-time and delivering a courteous and hassle-free experience.

    SWOT Analysis of Indigo Airlines


    SWOT Analysis identifies the Strengths, Weaknesses, Opportunities, and Threats of the
    business which helps in making strategic plans & decisions. Let’s have a look at the SWOT
    analysis of Indigo Airlines.
     
    1. Strengths of Indigo Airlines
    The Strengths of Indigo Airlines are as follows
    1. Biggest market share in Airline industry
    2. Successful implementation of low fares strategy
    3. On-time departures of the airlines
    4. Brand Awareness – good advertising and promotions
    5. Frequent flights to the same destinations
    6. The constant development of services
     
    2. Weakness of Indigo Airlines
    1. Less focus on business class
    2. A limited number of routes and number of seats compared to others
    3. Need improvement on customer services
    4. Got into controversies many times
     
    3. Opportunities of Indigo Airlines
    1. Establish international routes
    2. Providing better services
    3. Create awareness among the low-class people
     
    4. Threats of Indigo Airlines
    1. New entrants with low fares as competitors
    2. Unstable government policies
    3. The rise in fuel cost
    4. An increase in labour cost affects the company
    After looking for How Indigo can give competition to its competitors, let’s see who are the
    competitors for Indigo
     
    Competitor Analysis of Indigo Airlines
    Any company when launching their product in a highly competitive market needs to
    know what their competitors are up to. Some of the main competitors of Indigo are
    mentioned below.

    The Tata Group will have two full-service carriers in Vistara and Air India. The service quality of IndiGo is not to be
    compared to IndiGo, which is a low-cost carrier that offers cheaper flying options to passengers in a single class
    configuration.

    It is not just full-service carrier like Air India and Vistara but also billionaire Rakesh Jhunjhunwala-promoted Akasa that will
    add to the competition in low fare space in India.

    Akasa announced recently that the airline will start operations by summer months next year.

    Dutta, however, believes that the new entrant will take 2-3 years to scale up operations and therefore it will be less of a threat
    from competition viewpoint than Tata airlines in the immediate future.

    Indigo Airlines Advertising in India


    Indigo Airlines inflight advertising cost offers a diverse inventory of airline advertising agency
    options for brands to showcase their products/services, companies can target specific formats in
    sync to their requirements & focus on creating more impressive campaigns in distinct formats. 

    Indigo Airline Advertising 


    Email Advertising
    Bus Grab Handles
    Boarding Pass 
    Baggage Tag
    Domestic Inflight catalogue 
    Product Sampling
    Destination Guides
    International Inflight catalogue
    Beverage glasses & cups
    E-Tickets
    Tray Table
    Newspaper Jacket 
    Indigo Reach

    Our Corporate Social Responsibility (CSR) initiative IndiGoReach focuses on four


    broad themes: Children and Education, Women Empowerment, Environment
    and Heritage. We work towards upliftment of communities not just around us
    but also far-flung areas in the country. After all, India’s holistic progress is rooted
    in the collective aspirations of its people.

    Facts and Figures

     Market share of 53.5% as of October, 2021.

     Named as Aon Hewitt Best Employers India for the year 2016 and 2017

     Fleet of 278 aircraft including 142 new generation A320 NEOs, 48 A320 CEOs, 35


    ATRs and 52 A321 NEO.

     Best Low-Cost Airline, in India by SKYTRAX World Airline Awards for 10


    consecutive years (2010-2019)

     Recognized as ‘Great Place to Work’ for in India’ for 8 years in a row (2008-


    2015) and for the 9th time in 2021.

     IndiGo has been ranked as the 4th most punctual airline globally in 2018,
    6th most punctual airline globally in 2019 and 3rd most punctual airline globally in
    2021 by OAG Punctuality League.

     IndiGo has been recognized among the most valuable and strongest airline
    brands worldwide, as per the Brand Finance Airlines 50 report for two
    consecutive years. We ranked #43 in year 2020 and moved up 7 positions to #36
    in the year 2021.

    The reason IndiGo is such a dreaded


    competitor
    when the country was emerging of the COVID-19 second wave, all airlines together flew 790 unique
    routes in India
    Of this, IndiGo, the country’s largest carrier by fleet and domestic market share, operated on 531
    routes. This was followed by Air India, which had operations on 265 routes. SpiceJet came a close
    third, operating flights on 262 routes.

    On 194 of the 531 routes that IndiGo operates, the airline had an absolute monopoly. That’s a
    staggering 36.5%. SpiceJet had monopoly operations on 26.7% of its routes while Air India had
    monopoly operations on only 21% of its routes.
    IndiGo had 50% or more capacity share on 470 routes. That translates to 88.5%.
    It is precisely this number that could worry the competition. When you have over 50% capacity share
    on routes, you typically get a pricing power like no other.
    Worry for governments, airports and competition?

    Whenever there is monopoly, questions are raised on a few counts. Will an airline
    become anti-consumer? Will it become a behemoth that will be difficult to control?

    Aviation is not the only industry where a single player has more than 50% market share.
    Maruti Suzuki has the same in passenger vehicles and similar questions have never
    been raised. As long as the market remains competitive such questions are best
    avoided.

    However, as was the case with Jet Airways at Mumbai or Delhi, any dependence on one
    player can lead to serious consequences when that player is down and out. IndiGo may
    nowhere be close to that but past learnings should be a good case for the future.

    Conclusion
    IndiGo was not born with a golden spoon or paradropped with a fleet of 250+
    aircraft. It has worked its way upwards.
    But with a market share of 50%+, the airline has immense ability to influence the
    market. A case in point being that of Kolkata-Agartala sector which had seen very
    low fares until Spicejet vacated the market. The fares skyrocketed afterwards.
    This is not an isolated case but in a free market economy, this is how competition
    fights!
    With two airlines looking to raise cash and the national carrier up for privatisation,
    IndiGo could see an unhindered run for the next few quarters, if not the next few
    years.

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