IndiGo's Low-Cost Carrier Operating Model: Flying High in Turbulent Skies
|
Code :BSM0052
|
Region : India
|
||||
 |
 |
 |
 OR |
||
|
Introduction:The foundations of the Indian aviation industry were laid in 1911 with the first commercial flight, covering nearly 10 km. However, it was during the 1990s that the state-dominated Indian aviation industry underwent a transformation. The 'open sky' policy in 1991, followed by repealing of the Air Corporation Act (ACA) in 1994, opened the doors to private Full Service Carriers (FSCs). However, the entire landscape of this industry changed when Air Deccan (Deccan) entered with its Low-Cost Carrier (LCC) model in 2003, creating a new wave of competition. Encouraged by this success, players like SpiceJet and Go Airways (GoAir) entered the Indian aviation market. However, competition from FSCs coupled with infrastructural inadequacies created a turbulent weather for Indian LCCs. Rocketing fuel prices and high tax payments further added to their woes. Seeking refuge inmergers or offering new services to its customers, the Indian LCCs gradually bid farewell to their basic business model. Further, the merger of the low-cost pioneer, Deccan, with the premium airline Kingfisher, seemed to mark the end of the Indian low-cost airline dream. However, amidst these apprehensions, IndiGo, the last entrant in the Indian low-cost arena, created a success story. The timely departure of its flights coupled with cash refund on flight delays, helped IndiGo to win the trust of the Indian consumers. IndiGo's constant endeavour to maintain low costs has helped to keep the low-cost dream alive in the Indian skies. |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
