INTERIM ASSIGMENT ON INDIGOA COMPANY – INDIGO AIRLINES ? GOALSThe

The following essay sample on “Interim Assigment on Indigoa Company”: overview of Indigo`s Company structure, products and services. Goals and place of Indigo Airlines in industry.

COMPANY – INDIGO AIRLINES 

GOALS

The goal of the company is to be best air transportation system in the world by providing air transport at a comparatively lower price while ensuring on-time take-off and landing giving its customers a smooth and hassle-free experience.

PRODUCTS AND SERVICES

The core product of indigo airlines is that they provide low cost air transportation for middle class and lower middle class customers so that they can also experience flight journey.

Along with the core product they also offer supplementary product. like Check in, Food on board, connecting flight while traveling where the service is not available, Complementary gifts along with the travel, In-flight entertainment such as music, movies games and Frequent flier programs

MARKET – DEMAND, SUPPLY AND PRICE

Indigo has been on a track of rapid growth of demand due to increase in air traffic which is expected to grow 5.

3 times and Indigo is maintaining the supply side by building a strong network of domestic air travel network serving 52 destinations and increasing connectivity in tier 2 and tier 3 cities. Indigo has been able to maintain its cost advantage by optimising its demand and supply side

WEALTH MAXIMIZATION

The company maximises wealth by generating strong passenger revenue and by improving its cargo performance and minimize expenses by lowering operating cost and delivering fuel efficiency which in turn increase profitability

ELASTICITY

Aviation is an oligopolistic industry where small number of firms compete.

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Barriers to entry are significant. Airline industry is very price sensitive and so is Indigo’s fare

RESOURCES

Labour- Indigo has thousands of effective individuals who are of diverse background designed to attract, nurture and advance the lives of people and customers irrespective of their differently abled status, gender, lifestyle, sexual orientation, religion and nationality.

Capital- Indigo has grown from a carrier with one plane to a fleet of Fleet of 238 aircraft including 87 new generation A320 NEOs, 128 A320 CEOs, 18 ATRs and 5 A321 NEO. A uniform fleet for each type of operation, high operational reliability.

Financial Capital- Indigo has a cash balance at the end of the period was 173 billion rupees comprising of 77 billion rupees of free cash and 96 billion rupees of restricted cash

CORPORATE GOVERNANCE

Corporate Social Responsibility (CSR) initiative Indigo Reach focuses on three broad themes: Children and Education, Women Empowerment and Environment. They work towards upliftment of communities not just around but also far-flung areas in the country.

SOURCES

Secondary sources of information has been used to gather information about the company, industry and economy.

REFERENCES

The information used in this assignment has been taken from the Annual Report 2018-2019 of Indigo Airlines. The link to the report is given below.

Aviation Industry

The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.

Role of AAI

Until 2013, AAI was the only major player involved in developing and upgrading airports in India. Post liberalization, private sector participation in the sector has been increasing

Economy and Policies

1. The Government of India has liberalised the FDI policy for the aviation sector. It now permits 100% FDI in Greenfield and Brownfield airport projects.
2. The most notable government initiative in civil aviation is Ude Desh Ke Aam Nagarik (UDAN)- which is a regional airport development and connectivity scheme. Its objective is to enable “the common citizen of the country to fly.