Indigo

In: Business and Management

Submitted By kaps
Words 479
Pages 2
Approach Note: The flow of the case will be as follows:
Industry Analysis
The Indian aviation sector can be traced back to early 1910s. However, prior to economic liberalization in 1991, the aviator industry was mainly controlled by the government. Post 1991, private airlines were allowed to provide air service under “Open Sky Policy”. Since then several private airlines have ventured in the aviation business and the air traffic has also seen rapid growth. This led to intense competition and only a few managed to survive. Today, Indian aviation industry is one of the fastest growing aviation industries in the world. It is dominated by low cost carriers. The civil aviation industry is likely to register a CAGR of 16% for period 2010-2013.
Introduction to Indigo
Along with the venture of several private players came the trend for low cost private airlines, which promised a huge market in the Indian air space. IndiGo, from InterGlobe Enterprises was one among the major private players who pitched in to capitalize the untapped market in 2006. From its incubation days, IndiGo concentrated on its low cost and efficient model of operations, which sustained its business in a big way during the troubled market situations and rising oil prices. Within the first year of its operations, IndiGo grew exponentially in all spheres. Starting with owning 15 aircraft's within 2 years, IndiGo replaced the state run carrier Air India as the top third airline in India. There was no looking back since then. The airline went on to acquire their 50th aircraft from Airbus in less than six years, and also to place the largest order in commercial aviation history during 2011, all long with the strong adherence to low cost model, which makes it ranked the second largest player in terms of India’s domestic air travel market share with operations to 32 destinations and 355 flights every day.…...

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