Use of technology for increased control and efficiency: Low fares with lower fixed cost and lower airport charges.įlights on time with more controlled Turn Around Time.ĥ. Highest plane operating time of 11.4 hours per day.It operates a lesser number of destinations but with a higher frequency – 2.2 planes/destination for IndiGo compared to 1.2 for Spice Jet.No in-flight magazines for initial years.įlights on time with lower Turn Around Time.No loyalty programs with high operating costs.Low fares through better economics and reduced fuel costs.Ī hassle free experience with lesser breakdown/delays. Lesser breakdowns/snags with younger aircrafts.Younger fleets are more fuel efficient, need less maintenance.Pilots, flight crew, mechanics need to be certified for only one aircraft.įlights on time with more optimized maintenance/flight crew.Īfter delivery, IndiGo immediately sells the plane to an aircraft lessor, and then leases the plane back. This allows for it to have one of the youngest fleets in the world (average 3.26 years).They only use Airbus A320 aircrafts, buying in orders of 100 – 200, forming some of Airbus’s largest single deals. Bulk orders ensure favorable terms.It is only on the foundation of the 7 key elements of the Operating Model (as below), that the company seems to have pulled off the elusive ‘Budget with Quality’ value proposition: The company’s operating model directly supports and enables the three elements of the business model, ie Low Fares, Flights on Time and Hassle free experience for the customer. The budget airline business model is hardly unique – the brilliance of Indigo lies instead in its execution. Youthful urban cues in branding and advertising with a ‘cool quotient and crossover appeal’.High level of in-flight and ground service is a key differentiator from other budget airlines.“A courteous, hassle free travel experience” As per data released by, IndiGo is clearly delivering on this promise to customers:ģ.This makes even business travelers loyal to the brand, in spite of no ‘First Class’. The primary differentiator and branding pitch is “on time, every time”, while competitors solely advertise low fares.No lounges, food or extravagant frills in customer service.Budget airline positioning with consistent, low pricing but no heavy discounts. The no-frills carrier has a clear positioning – it promises to offer customers: Pathways to Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activists
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