Punctuality Pays: Indigo's Winning Formula

Indigo Airlines is a standout story in the airline industry, known for its smart operations and focus on customer satisfaction. It has successfully cornered over 60% share of the domestic aviation market - miles ahead of their closest competitor Vistara with 10% market share.

Indigo Airlines' success isn't just about its size and efficiency; what truly stands out is how it has vividly expressed its unique brand personality and tone across all customer interactions. This commitment to brand consistency is a key part of what makes Indigo captivating for those who love branding.

Taking Off

Indigo was launched in 2006 by Rakesh Gangwal, an NRI, and Rahul Bhatia, the head of InterGlobe Enterprises. InterGlobe held a 51% stake, with Gangwal owning the remaining 49%.

Before starting operations in mid-2006, IndiGo placed an ambitious order for 100 Airbus A320-200 planes in June 2005, signalling its serious intentions in the airline industry.

Navigating the Skies: Indigo’s Market Manoeuvres

At the time, a shift in the priorities of Indian consumers was underway. And Indigo, recognising this shift that as air travel became more accessible, while the first-time flyers would initially view flying as aspirational, as people began flying more frequently, the focus would shift from aspiration to efficiency.

Anticipating this change, Indigo aimed to distinguish itself by prioritising punctuality and reliability, ensuring passengers could trust it for timely arrivals, whether for meetings or getting home, thus creating a competitive advantage beyond the usual perks of food and service.

Indigo chose to stand out by committing to a tangible and measurable promise: punctuality with the motto "On Time, Every Time." This focus on reliability was a forward-thinking strategy in 2006, a period when the novelty of flying was just beginning to replace long train journeys for many.

If you remember India back in 2006, you would realize that emphasising timeliness wasn't just intuitive but set a new standard, demonstrating Indigo's understanding of evolving passenger priorities from aspiration to efficiency.

Indigo committed to its promise of punctuality and went further by investing in technologies and tools that ensured the brand could consistently meet its "On Time, Every Time" commitment.

Flying High on Efficiency: The 3-Part Indigo Engine

This positioning led to the establishment of the '3 pillars of service' at Indigo.

Pillar 1: On-time performance

Indigo sets itself apart by focusing on on-time performance, a clear and measurable aspect that differs from subjective areas like service quality or food. The airline supports this commitment by equipping its fleet with CAT-IIIB systems for low-visibility operations and adopting ACARS technology for precise monitoring of aircraft turnaround times. Despite the cost, these investments highlight Indigo's dedication to punctuality, ensuring they meet their "On Time, Every-Time" promise, even when competitors may overlook such details.

Pillar 2: Low-budget airline

IndiGo Airlines positions itself as an affordable travel option by not including complimentary meals in its ticket prices, instead generating additional revenue through in-flight services and merchandise. They utilize a bundle pricing strategy, offering a pay-for-what-you-prefer in-flight meal service to enhance the travel experience for passengers who choose to pay for specific additional services.

Pillar 3: Hassle-free travel experience

When someone flies Indigo Airlines, what is he looking for?

It's not a five star flying experience. Travellers choosing Indigo Airlines are typically not after a luxurious experience but value a smooth, hassle-free journey. Indigo meets this expectation by offering innovations like Queue-busters for mobile check-in and being the first to make welcoming announcements on the coach to the aircraft, enhancing the feeling that the journey begins the moment you board the coach.

The Flight Path: Indigo’s Operational Strategical Playbook

• Indigo maintains a fleet of A-320-232 aircrafts. It results in much more flexibility as the use of the same crew from pilots to flight attendants to the ground force helps in cutting on training and up-gradation costs.

• Maintains an average fleet age fewer than 3 years to ensure low maintenance costs.

• Optimizes fuel use via softwares for route planning which ensure minimum fuel-burning routes and altitudes.

• Focuses on high-frequency flights over fewer destinations to increase aircraft usage and reduce airport fees.

• It employs Power by the Hour contracts for maintenance with the manufacturer of the engines (International Aero Engines) and the airplane provider Airbus. This strategy puts the onus of performance delivery on them. These contracts do come at a premium, but it means that IndiGo does not have to pull out planes from service for repairs and also does not have to maintain a large inventory of spares.

Beyond the Horizon: Indigo’s Ambitious Altitudes

Indigo is strategically eyeing global expansion, with plans to venture into more international destinations. IndiGo is considering adding a premium seating category to attract more business travellers and compete on international routes with Air India. The airline plans to introduce hot meals and a loyalty program by the end of 2024.

As of January 2024, IndiGo operates more than 2,000 daily flights to 119 destinations, 86 in India and 33 abroad. Its main base is located at Delhi, with additional bases at Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Kochi.

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