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IndiGo's Rise in Indian Aviation

The document outlines the rise of IndiGo Airlines as a dominant player in the Indian aviation market, achieving over 52% market share by maintaining profitability through cost-effective strategies. Key tactics included bulk procurement of aircraft, an asset-light model, and a focus on essential services rather than luxury offerings. Stable leadership under CEO Aditya Ghosh also played a crucial role in the airline's success amidst industry challenges.

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khaledsayfullahsadi1263
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39 views3 pages

IndiGo's Rise in Indian Aviation

The document outlines the rise of IndiGo Airlines as a dominant player in the Indian aviation market, achieving over 52% market share by maintaining profitability through cost-effective strategies. Key tactics included bulk procurement of aircraft, an asset-light model, and a focus on essential services rather than luxury offerings. Stable leadership under CEO Aditya Ghosh also played a crucial role in the airline's success amidst industry challenges.

Uploaded by

khaledsayfullahsadi1263
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Bangladesh University of Professionals

Faculty of Business Studies

Department of Accounting & Information Systems

Assignment on:

The Rise and Collapse of IndiGo in Indian Aviation: Summary Overview

Submitted to:

Sirajum Munira Chowdhury

Lecturer

Department of Accounting & Information System (AIS)

Bangladesh University of Professionals

Submitted by:

Md Khaled Sayfullah Sadi

Student ID: 25211410124

1st Semester

Course Code: ALD 1102


The Rise and Collapse of IndiGo in Indian Aviation: Summary Overview

The videos give a clear case study of how Indigo Airlines grew to become the top player
in the tough Indian airline market.

Despite the fall of earlier big giants like Kingfisher, Jet Airways, Sahara [Link] Indigo
managed to maintain profit for ten consecutive years until 2018, acquiring over 52% of
the domestic market share—more than all its next five competitors combined.

Indigo’s key to success lay in lessening the operational costs without raising fare,
primarily through innovative strategies like a large bulk order of high Airbus aircraft at
discounted prices, then sold it in small airlines & generating revenue. They also hired
airbus from that company for a few years at leaseback model. Unlike competitors who
focused on premium services—such as meals and huge marketing expenses, Indigo only
focused on providing the essentials: a seat and legroom.

Bulk Aircraft Procurement as Strategy :

Indigo bought 100 airbus planes from the very beginning, getting huge discounts
(approximately 50%). This bold move cut the cost per plane & gave them a chance to
figure this amount in other sectors.

Asset-Light Model

Indigo used a sales and leaseback model, converting heavy capital investment into
manageable operational expenses. This approach improved liquidity, deferred risks, and
freed up cash for growth—all essential in a high-cost, low-margin industry like aviation.

Service-Centric Cost Control

Unlike all competitors who focused on luxury, Indigo started offerings to the Indian
market’s demand for affordable flights. By cutting unnecessary expenses (like meals and
entertainment), it lowered costs and increased accessibility.
Crisis Management

During the oil price hike of 2008,different companies sacked their pilots & other staff as
well. Indigo offered them jobs & they got talented workers without training expenses.

Stable Leadership as a catalyst

Indigo benefited from consistent leadership under CEO Aditya Ghosh for a decade. His
stable and focused governance enabled long-term strategic execution, in stark contrast to
competitors plagued by leadership turnover and strategic inconsistent

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