Indigo is one of the sub-branches of the humungous inter globe group who has a presence in all the sectors related to the hospitality industry. Key areas where interglobe has presence are :
Advanced Pilot training
School For Aircraft Maintenance Engineering
Interglobe Technology Quotient
Interglobe Hotels (IBIS Hotels)
Interglobe Real Estate
Interglobe Air Transport
Interglobe Aviation(Indigo)
Interglobe Aviation Ltd commonly known as Indigo was started in the year 2004 and the company became public during the year 2015.
Indigo mainly focused on three features mainly giving low fares, being on time and having a hassle-free experience. The period when entered the aviation industry the number of people using flights for commutation was very less when compared to today’s figures. In 2011 only 59.87 million people were ready to use aircraft and in 2017 the air traffic rose to 117 million.
During 2011 indigo was only able to fly with 75% of the full capacity of the flight but during 2017 they were able to fly with 86.1% of the full capacity.
Market Scenario In 2011
Market Scenario in 2018
Indigo grew from mere 17% market share in 2011 to become the market leader in the aviation sector with a lion share of 41% in 2018. This was possible because mainly due to there low cost pricing which invited people who were mostly travelling by trains and buses for long distance to use air transport for commutation. They were also able to build a trust among people that there flights don’t get delayed or canceled most of the times. They earned the reputation to be on time.
Let’s try to understand more in detail about interglobe aviation with the help of a swot analysis.
SWOT ANALYSIS:
Strength: Market leader, Lowest pricing, arriving and departing on-time 81% of the times with respect to the scheduled time and the only company in the aviation sector making profits.
Weakness: High operating costs due to the increase in fuel prices.
Opportunity: Expand more to the international market and capitalize on providing more flights to the upcoming airports in tier 2 and 3 cities through Udan Yojana.Could utilize biofuel to reduce fuel cost and carbon emissions while increasing efficiency.
Threat: More players have entered into the industry and all are going with competitive pricing. Some of them have strong backing from companies like Tata Group who has two tie-ups one with Air Asia and the other with Singapore airlines. Hyper competitive market.
Will discuss more about interglobe group and interglobe aviation ltd in the coming episodes. Stay tuned.
OFFICIAL MEDIA PARTNER: NEWSWIRE
OFFICIAL PROMOTIONAL PARTNER: IBS MESSENGER
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