1. Merely debt free company in the air power sector – It has adequate hard currency in his pool to prolong itself for another two old ages. With the sum of hard currency that indigo possesses it will certainly be one of the large participants in the low-priced infinite globally with its expected fleet size of about 100 planes by the twelvemonth 2016. Indigo’s fleet makes up about 6. 5 % of India’s combined swift size and comparing this figure with the market portion of 27. 40 % .
2. Word of Mouth & A ; Repeat Customers – Indigo has barely advertised and indulged in trade name edifice activities.
It spends less than 1 % of gross on selling. It is merely recently that it started to recognize the value of advertisement and launched a twosome of ads. The secret behind the huge success of the air hose is the word of oral cavity advertisement & A ; repetition purchases by the clients. Indigo outperformed its challengers by set uping a difference ; it created greater value to its clients at lower monetary value.
Hence. Delivering greater value allowed them to bear down higher and Greater efficiency resulted in lower norm costs.
3. Price Sensitive & A ; Time Sensitive – The company achieves cost advantage through assorted procedures such as avoiding the in flight services. No free repasts. Highest no. of seats in the aircraft. Lower employees per aircraft. Lightest rider seats in India which weigh merely 12. 8 kilogram and utilizing pigment which overall weights 50 Kgs less. Indigo has broken up the occupation into little packages with clip marks and each of these is monitored.
They have even turned around an aircraft in 14 proceedingss.
4. Operational Efficiency & A ; Innovation- Indigo has set up a centralised operations control Centre which monitors the conditions. anticipate holds and even provides progress information to the land staff. Average age of the fleet is about 1 twelvemonth. the happening of proficient mistakes are low and therefore less care issues. Because of this Indigo has managed to accomplish high On-Time public presentation. Indigo keeps implementing new and advanced thoughts to increase the quality of client service. Recent illustration is: Indigo has rolling “check-in counters” where riders with merely cabin luggage can check-in with an Indigo functionary with a hand-held device. instead than run alonging up at the check-in counter.
Calculating Success of Indigo Airlines ( Load Factor )
“Indigo has reported a Load Factor of 75. 7 % when the Industry’s norm was 65. 6 % ” * Load factor represents the proportion of air hose end product that is really consumed. To cipher burden factor. split RPMs by ASMs * RPM ( Revenue Passenger Miles ) – It is calculated by spliting rider gross by available place stat mis * ASM ( Available Seat Miles ) -One aircraft place flown one stat mi. whether occupied or non. For example-An aircraft with 200 rider seats. wing a distance of 200 stat mis. generates 40. 000 available place stat mis.