“Running an airline is like having a baby : Fun to conceive , but Hell to deliver “.
Indian Airline Industry is expected to post a total loss of up to Rs 7,700 crore while all the leading airline are under the crisis only IndiGo is still making money .
This made me curious and i took the most predictable action – GOOGLE It and read various article and research paper and finally was able to find the answer to my question – how did it managed to make profiit while its competitors are bleeding .
Let us look at its business model :-
- Its based on The Austerity Model which focuses on the cost . The airline has shunned frequent flier programmer , airport lounges , special check In , TV screen on board.
- It has a reputation for On Time Punctuality and has managed to save cost by buying single type of aircraft ‘Airbus 320′ thus minimizing its maintenance and pilot training cost.
- Keeping Internal cost under control and it has a deal with CAE, to provide training to its pilot cadets .
- Good On board service and clean aircraft.
- Low Fare cost (my favorite) has resulted in more passenger.
The credit for its success would be incomplete without mentioning Aditya Ghosh , president of IndiGo who has being the driving force behind the success !
FYI – Aditya didn’t have any prior knowledge about aviation industry and withing 4 years of joining IndiGo was appointed as the president , he is 32 & has been playing the role of the man at the helm .