Aviation Industry

SUBMITTED TO: Mrs.
RAJSHREE PILLAI
SUBMITTED BY: MAYANK
RAWAT
MUNINDRA
UPADHYAY
PGDM 3
PROJECT REPORT ON INDIGO
Table of Contents
Sector information:........................................................................................................... 2
GDP contribution to world economy..................................................................................2
Economic benefit of aviation industry................................................................................3
Global trend in civil aviation............................................................................................ 4
INTERNATIONAL BODIES REGULATING AVIATION INDUSTRY......................................5
Contribution to the Indian Economy...................................................................................... 6
Porters five force analysis:................................................................................................ 9
About the company:....................................................................................................... 10
Vision:..................................................................................................................... 10
Snapshot of the company:............................................................................................. 10
Financial details of the company:.................................................................................... 11
Shareholding pattern of the company...............................................................................12
Promoters of the company:............................................................................................ 12
Market Share of the company:........................................................................................ 13
Competitor analysis:.................................................................................................... 15
Organizational structure of the company:..........................................................................16
Employee Engagement, Training and Development in the company:............................................17
Training program for future pilots................................................................................... 17
IFLY Training Institute for air hostess.............................................................................. 17
Job description.............................................................................................................. 18
Job description for marketing......................................................................................... 18
Job description for human resource.................................................................................. 19
Job description for finance............................................................................................ 20
CTC of IndiGo employees................................................................................................ 21
Company in news.......................................................................................................... 22
Why indigo is successful?................................................................................................ 23
Bibliography................................................................................................................ 24
Sector information:
Aviation is an important part of the economy which enables global business and tourism. Since 1990,
global passenger have grown 4.7% each year. This trend will continue with world traffic expected to
double in the No index entries found.next 15 years and passenger aircraft number to increase by 106%
by 2034.
Key drivers for this growth are:
1. Increase in disposable income, living standards and value of time have raised the demand for air
travel for both business and tourism.
2. Propensity to travel far off location for business or travel
3. Air travel cost remained stabled due to lower Aviation Turbine Fuel (ATF)
GDP contribution to world economy

The aviation industry supports US $2.7 trillion (3.5%) of the worlds gross domestic product (GDP).
Contribution to the world GDP
4%1% 2%
6%
87%
Aviation
Automotive Industry
Chemicals manufacturing
Global financial services industry
Others
Economic benefit of aviation industry

It is estimated that total contribution of aviation industry in global economy is estimated at $2.4 trillion
through direct, indirect, induced and catalytic effect of tourism. 3.4% of global economy relies on
aviation. According to IATA (International Air Transport Association) aviation industry generates
livelihood to 58 million people globally. The aviation industry directly employs 8.7 million people, and
creates 9.7 million indirect jobs through purchase of good and services by companies in its supply chains.
According to international civil aviation organization (ICAO), every $100 expenditure in air transport
produces benefit worth of $325 to local economy. In addition every 100 additional jobs creates 610 new
jobs in local economy.
Direct GDP benefits:
The worlds airlines carry over three billion passengers a year and 50 million tons of freight. Providing
these services generate 9.9 million direct jobs within the air transport industry and contributes $664.4
billion to global GDP
Compared with the GDP contribution of other sectors, the global transport industry is larger than the
automotive industry, which accounts for 1.2% of global GDP and chemicals manufacturing (2.1%). It is
more than half the size of the global financial services industry, which accounts for 6.2% of GDP.
Indirect GDP benefits:
These include employment and activities of suppliers to the air transport industry for example, aviation
fuel suppliers; construction companies that build airport facilities; suppliers of sub-components used in
aircraft; manufacturers of goods sold in airport retail outlets; and a wide variety of activities in the
business services sector (such as call centers, information technology and accountancy). These indirect
activities contributed approximately $761.4 billion to global GDP in 2014.
Induced GDP contribution:
The spending of those directly or indirectly employed in the air transport sector supports jobs in industries
such as retail outlets, companies producing consumer goods and a range of service industries (such as
banks and restaurants). Worldwide, roughly $355 billion induced GDP impact globally is supported
through employees in the air transport industry (whether direct or indirect) using their income to purchase
goods and services for their own consumption.
Tourism GDP contribution:
Tourism is fast becoming the worlds largest industry and air transport plays a very important role in
supporting this sector. Conservative analysis suggests that aviation supports $892.4 billion in economic
activity within the tourism industry. Click here for some information on the role aviation plays in
supporting the global tourism sector.
Global trend in civil aviation

CHANGE IN PASSENEGER YEAR ON YEAR FROM 2006-2015
change in pasengers
4000
3500
3000
2500
2000
1500
1000
500
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
change in pasengers
Source: IATA- international air transport association

IATAs global passenger traffic results for 2015 shows that demand in terms of RPKM rose to 6.5% for
the full year compared to 2014. This is strongest result since the global financial crisis and well above the
10 year average growth rate of 5.5%. Economic fundamental were weaker in 2015 due to slowdown in
china but it was nullified by fall in oil prices.
Key parameters of global aviation industry in 2015
Routes
RPKM growth
ASKM growth
International
6.5%
5.9%
Domestic
6.3%
5.2%
Total
6.5%
5.6%
Source: FICCI- KPMG
RPKM- revenue per kilometer is measure of volume of passenger carried by an airline, a revenue per
kilometer is realized when a revenue passenger is carried one kilometer. Measure of demand
ASKM- available seat per kilometer is measure of airlines passenger carrying capacity. It is multiplied by
number of seats multiplied by number of kilometer flown. Measure of supply
IATAs global passenger traffic results for 2015 shows that demand in terms of RPKM rose to 6.5% for
the full year compared to 2014. This is strongest result since the global financial crisis and well above the
10 year average growth rate of 5.5%. Economic fundamental were weaker in 2015 due to slowdown in
china but it was nullified by fall in oil prices.
4
REGION
RPKM
APKM
Africa
2.9%
1.4%
Asia/pacific
8.6%
6.7%
Europe
5.1%
3.9%
Middle east
10.0%
6.4%
Latin America
6.7%
12.6%
North America
4.3%
3.8%
Total
6.5%
5.6%
Source: FICCI-KPMG
INTERNATIONAL BODIES REGULATING AVIATION INDUSTRY

ICAO International Civil Aviation Organization, a United Nations agency headquarter in Montreal,
Canada
IATA international air transport association
Contribution to the Indian Economy

The Indian civil aviation economy is among the top 10 globally with a size around of $16billion and has
the potential of becoming 3rd largest in world by 2020 and the largest by 2030. There is large untapped
potential for growth due to the fact that still aviation is still dream to 99.5% of country population.
Aviation industry contributes around 0.5 % to GDP or Rs 30000 crore and supporting 1.7 million jobs as
per the study done by oxford economics for the International Air Transport Association (IATA) in 2012
The GDP of the country has risen above 8 percent and it is expected the growth rate will continue for the
coming years. In South Asia, the aviation industry in the country holds 69 percent of the overall airline
traffic. What is more, the growth of airline traffic in the sector is 4 times what is recorded at international
levels. The aviation industry has also contributed to employment as it supports over 1.7 billion jobs in the
country. 276,000 of these jobs are supported directly by the industry, 841,000 are supported indirectly by
the sector supply chain while 605,000 jobs are supported through spending by employees in the sector
and the supply chain. What is more, there are more than 7.1 million people who are employed through
catalytic effects of the industry.
Air Passenger Traffic in India, both domestic and international witnessed a positive growth in the year
2015-16 compared to the previous year.
Passenger traffic
Unit
2015-16
2014-15
Domestic passenger
Departing passengers
85.20 million
70.08 million
Domestic airline demand
Revenue
passenger
kilometers(RPK)
80.96 million
67.02 million
Domestic airline capacity
Available seat kilometer
97.71 million
84.81 million
International passenger
Departing and arriving

passenger
-
49.83 million
45.74 million
135.03
115,82
Total passenger domestic and

international
Source:
DGCA
Available seat kilometer (ASK)

Revenue per kilometer (RVK)
160
140
135
120
115.8
100
98.9
88.9
80
71.6
60
59.2
40
35.8
23.4
20
44.4
27.2
68.4
39.5
28.9
97.9
103.7
85.2
77.4
45.3
32.1
70.1
53.8
35.1
60.8
57.6
60.6
38.1
40.3
43.1
45.7
49.8
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
INTERNATIONAL PASSENGER
DOMESTIC PASSENGER
TOTAL PASSENGER
The domestic passenger traffic registered a compound annual growth rate (CAGR) of 10.10% during the
period 2006-07 to 2015-16 while the international passenger traffic grew at 8.75% (CAGR) during the
same period
CAPACITY VS DEMAND IN DOMESTIC MARKET OVER THE PAST DECADE

120000
100000
80000
60000
40000
20000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
RPK(DEMAND)
ASK(CAPACITY)
The Civil Aviation industry in India has entered in a new era of expansion, driven by factors such as lowcost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced
information technology (IT) interventions and growing emphasis on regional connectivity. India is the
ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion. India is
expected to become the third largest aviation market by 2020.
Historical growth pattern:
Passenger Traffic (millions)

250
20%
200
15%
150
10%
100
5%
50
0%
Millions
2010
2011
2012
2013
2014
2015
2016
-5%
FY
Air Passenger Traffic in India, both domestic and international witnessed a positive growth in the
year 2015-16 compared to the previous year. The domestic passenger traffic registered a compound
annual growth rate (CAGR) of 10.10% during the period 2006-07 to 2015-16 while the international
passenger traffic grew at 8.75% (CAGR) during the same period. During the years from 2006-07 to 201516, the capacity (ASK) in the domestic market grew at a rate of 8.04% (CAGR) while the demand (RPK)
grew at 10.29% (CAGR) during the same period.
The Indian aviation industry is witnessing a growth of 17.62 per cent over the previous year, total
passenger traffic stood at a 223.6 million in FY16, which was recorded at 190.1 million in FY15 in India.
Growth in passenger traffic during FY06-16 is at a CAGR of 11.8 per cent in the country.
Porters five force analysis:

Competitive Rivalry
1. Competition among major players is very high, especially in LCCs (Low cost carrier) section
because the airlines compete for the middle income group customers and passengers of airconditioning segment of railways. This group has low brand loyalty and is highly price
sensitiveness.
2. High competition generally earns low return as cost of competition is very high.
Threat of new entries:
1. Threat remains low because of the credit and red tape. If bank loans and regulatory hurdles are
low its easy to break in.
2. Just entering into industry is not enough as brand pulls the customer.
Substitute products:
1. Threat remains depend is it a regional or international. For international it is low as there are no
or few other means of transport is as swift, and convenient as airlines.
2. For regional it is high as railways, road are becoming at par with airline
3. Time, money and other preferences have a major role.
Bargaining power of suppliers:
1. Bargaining power of suppliers remain high as there are only few fuel and aircraft suppliers
2. Talent pool of pilots, engineers and other staff is also limited
Bargaining power of customers:
1. Bargaining power of customers remains low as the demand for low cost air travel is quite high
2. The costs of switching airplanes and services offered hardly differ with each other
Competiti
ve
rivalary:
High
Bargainin
g power of
customers
:
Low
Porters
five
force
analysi
s
Bargainin
g power of
suppliers:
High
Threat of
new
entries:
Low
Substitute
products:
Low
10
About the company:

Interglobe Aviation was incorporated on January 13, 2004 in Lucknow under the Companies Act, 1956
with the Registrar of Companies, Uttar Pradesh and Uttarakhand at Kanpur as InterGlobe Aviation
Private Limited. The name of the company was changed to InterGlobe Aviation Limited on August 11,
2006. The registered office was subsequently changed from the state of Uttar Pradesh to the National
Capital Territory of Delhi with effect from September 6, 2004 and such alteration was confirmed by the
order of the Company Law Board dated September 1, 2004. The registered office was changed within the
National Capital Territory of Delhi to its current place on October 1, 2006. The airline operates IndiGo,
Indias largest passenger airline with a 33.9% and 37.4% market share of domestic passenger volume for
fiscal 2015 and the five months ended August 31, 2015, respectively. It operates on a low-cost carrier, or
LCC, business model and focus primarily on the domestic Indian air travel market.
The company is one of the first airlines globally to order the A320neo aircraft. A320neo aircraft are
expected to deliver up to 15% fuel savings initially and up to 20% fuel savings by 2020 compared to
current generation A320 aircraft without sharklet wing-tip devices, which will further reduce its fuel
consumption per flight. The magnitude of the companys 2005, 2011 and 2015 aircraft orders helped it to
negotiate favorable terms with Airbus and its other aircraft-related suppliers and service providers, which
provides it with a structural cost advantage by reducing the overall costs associated with the acquisition,
maintenance and operation of its aircraft.
Vision:
Provide low fares, on-time flights and a hassle-free experience to our passengers
Business area of the company:
The company primarily operates in Indias domestic air travel market, which is forecast to be the worlds
fastest growing market by origin-and-destination traffic flow between 2013 and 2033, estimated to grow
at a CAGR of 9.5%.
Snapshot of the company:
Name of the Company
Registered address
Website
Sector(s) that the Company is
engaged in
List three key products / services
that the Company
manufactures provides
Total number of locations where
business activity is
undertaken by the Company
Markets served by the Company
InterGlobe Aviation Limited

Central Wing, Ground Floor, Thapar House, 124, Janpath,
New Delhi - 110 001, India
www.goindigo.in
Passenger Services - Air Transport
Domestic scheduled air transport services of passengers
International scheduled air transport services of passengers
5 international locations - Bangkok, Dubai, Kathmandu, Muscat
and Singapore
35 domestic locations
National (domestic) / International
11
Financial details of the company:

Total Turnover (INR)
Total profit after taxes (INR)
Total Spending on Corporate Social
Responsibility
(CSR) as percentage of profit after
tax (%)
List of activities in which
expenditure in 4 above has
been incurred:-
Rs. 166,013.02 million

Rs. 19,897.20 million
Rs. 85.08 million or 0.43% of profit after tax
a) Promoting education and eradicating poverty, hunger and

providing
health care
b) Promoting gender equality and women empowerment
c) Employment enhancing vocational Skills
d) Protection of National Heritage
e) Environment
f) Disaster relief
12
Shareholding pattern of the company

IndiGos went public on 27 October 2015, which was biggest IPO in past three years since bharti infratel
offer in December 2012
Shareholding pattern of Indigo

6%
8%
43%
43%
Indian Promoters
Foreign Promoters
Institutions
Non isntitutions
Promoters of the company:
Rahul Bhatia
Kapil Bhatia
Rohini Bhatia
Asha Mukherjee
InterGlobe Enterprises Limited
Caelum Investment LLC
Rakesh Gangwal
Acquire Services Private Limited
The Chinkerpoo Family Trust (Trustee: Shobha Gangwal & J. P. Morgan Trust Company Of
Delaware)
GE Mauritius Private Limited
13
Shareholding of the promoter group
Axis Title
45
40
35
30
25
20
15
10
5
0
42.64
16.89
15.64
9.67
1.16
Market Share of the company:

Indigo leads the Indian Aviation market in terms of Domestic Market demand (RPK) and Passengers
carried(2015-2016) followed by Jet Airways , Air India and Spice Jet. The following graphs shows the
market share of the respective companies:
14
Domestic Market Share in terms of Passengers Carried 2015-16
17%
37%
13%
15%
19%
Indigo
Jet Airways
Air India
Spicejet
Others
Market Share in terms of Domestic Market Demand(RPK)
17%
40%
12%
15%
17%
Indigo
Jet Airways
Air India
SpiceJet
Others
Jet Airways is the leading market share holder in terms of international operations and Indigo has 4%
market share.
15
Market Share in terms of International Operations
14%
11%
43%
11%
5%
3% 4% 4%5%
Jet Airways
Air India
Emirates Airline
Air India Express
Etiahd Airlines
Qatar Airways
Air Arabia
Indigo
Others
Competitor analysis:
The main competitors market share
16
Market share
2% 2%
9%
15%
41%
12%
18%
IndiGo
Jet Airways
Spice Jet
Air India
Go Air
Air Asia
vistara
Source: DNA India
No of employees of the company:
Categories of employees
Number
employees
Total number of Permanent employees

Total number of employees hired on temporary / contractual / casual basis
Number of permanent women employees
Number of permanent employees with disabilities
12,362
7,711
5,276
10
17
of
Organizational structure of the company:

Board of directors
chairperso
nDevdas
Mallya
Manglore
non-exe
independe
nt
Anupam
Khanna
Non-exe
director
Rahul
Bhatia
Non-exe
director
Rakesh
Gangawal
Non exe
director
Rohini
Bhatia
President
Aditya
Ghosh
18
Management
CEO
Rahul
Bhati
a
chief aircraft
acquistion
officer
riyaz haider
peer
mohamed
COO
Sanjee
v
Ramd
as
CFO
Rohit
Phillip
Chief
Safety
Officer
capt.D
hruv
Rebba
praga
da
19
CCO
Sanjay
Kumar
HEAD
HR
Harish
.K.gan
dhi
Employee Engagement, Training and Development in the company:

The Company promotes an inclusive culture where merit is rewarded, openness is fostered, diversity is
valued and an individuals opinion is respected. Some of the key employee engagement activities applied
here includes a IGT (IndiGos Got Talent), online quiz programs, offsite events, special workshops for
women on International Women day and programs like In pursuit of Excellence, and sports events like
cricket matches and others. Aligned to this approach, the Company has a number of employee welfare
policies. It also provides Mediclaim facility under the Group Mediclaim Policy to its employees. For this
progressive work policies and nurturing work environment, IndiGo has been chosen as an AON Best
employer India 2016
Training program for future pilots

Indigo pilots are trained at CAE Oxford Aviation Academy, Gondia. This self-sponsored Program
designed by CAE and IndiGo to enable you to train for a Commercial Pilot License.
The unique training program is specifically designed for individuals who have no prior flying experience
and want to be a pilot. The program have three phases of training.
PHASE 1: GROUND THEORY AND FLIGHT TRAINING
This phase provides the candidates with the training required to obtain a commercial pilot license (CPL).
Candidates have to go 650 hours of theoretical knowledge training and flight training for CPL.
PHASE 2: UPSET PREVENTION AND RECOVERY TRAINING (UPRT)
Upon graduation from the DGCA (Directorate General for Civil Aviation) CPL training program at NFTI
(National Flying Training Institute) for cadets in the Domestic Pathway, Upset Prevention and Recovery
Training (UPRT) must be completed prior to the commencement of the A320 type rating. This additional
training can be completed in 3-4 days and is conducted at an overseas facility designated by NFTI and
approved by IndiGo. NFTI assists the cadet with making these arrangements
PHASE 3: TYPE RATING
Once the cadets have obtained their CPL and UPRT, they move on to the Type Rating (TR) training phase
to qualify as a co-pilot on the Airbus A320 aircraft.
IFLY Training Institute for air hostess

Ifly is Indigo premiere training institute for training and development of flight attendants.
Such type of trainings are provided to prospective flight attendants
Etiquette training
Ramp training
Self-defense training
20
Job description
Job description for marketing
JOB TITLE: Management trainee
RECOMMENDED SALARY GRADE:
JOB FAMILY: Marketing
DIVISION
DEPARTMENT: Advertisement and promotion
JOB CODE
EXEMPT/NON EXEMPT
REPORTS TO: Marketing head
LOCATION: Pune
DATE:
SUMMARY:
The person in this position is responsible for advertisement and promotion of company through digital,
print media, social media and other mode of advertisement. This person will be highly responsible for
implementing the ideas set by brand management.
REQUIREMENTS:
MBA/PGDM having minimum 0-5 years of experience in advertisement and promotion.

Should be able to make commercials for TV, print ads for magazines, newspaper and on
billboards, in flight magazines and home pages on web.
Should have basic knowledge of digital, online, print advertising.
Excellent analytical and creative skills.
PRIMARY RESPONSIBILITES:
Branding and advertising through a mix of conventional and unconventional media.

Create marketing schemes and special offers.
Digital marketing
Brand promotions through strategic sponsorship and tie-up/promotions.
Understanding the key functional areas of advertisement and marketing functions of company.
KEY SKILLS
Good communication and interpersonal skills

Good negotiation skills
Ability to influence and convince peers
21
Job description for human resource

JOB TITLE: Human resource manager
JOB FAMILY: Human resource
DIVISION
DEPARTMENT: Training and development
JOB CODE
EXEMPT/NON EXEMPT
REPORTS TO: HR head
LOCATION: Pune
DATE:
SUMMARY: Develop policy and directs and coordinates human resource activities such as employment,
compensation, labor elation, benefits, training and employee service
RESPONSIBILITIES
Analyzes wages and salary reports and data to determine competitive compensation plan.
Develop and maintains a human resource system that meets with top management information
need.
Recruit, interviews, tests and select employees in vacant positions
JOB REQUIREMENTS
MBA in human resource.

Ability to respond to most sensitive inquiries and complaints.
KEY COMPETENCIES
Ability to respond to most sensitive inquiries and complaints.

Good communication and interpersonal skills
Good negotiation skills
Ability to influence and convince peers
22
Job description for finance

JOB TITLE: Finance manager
JOB FAMILY: Finance
DIVISION
DEPARTMENT: Finance
JOB CODE
EXEMPT/NON EXEMPT
REPORTS TO: HR head
LOCATION: Pune
DATE:
SUMMARY:
The person in this role will be responsible for supporting the financial planning and analysis division of
organization.
RESPONSIBILITIES:
Assist with the monthly, quarterly and annual financial planning activities.
Prepare periodic financial reports
Work with financial planning and analysis leadership to prepare various financial models and
analysis.
JOB REQUIREMENT:
Knowledge of financial ratios for financial modelling.

Knowledge of accounting practices and financial statements.
Proficient in Microsoft word, excel and PowerPoint
Good written and verbal communication skills
KEY COMPETENCIES:
Knowledge of financial ratios for financial modelling.

Knowledge of accounting practices and financial statements.
Proficient in Microsoft word, excel and PowerPoint
Good written and verbal communication skills
23
CTC
of
employees
For
assistant
manager
Particulars
Basic
Dearness allowance
House rent allowance
Conveyance allowance
Medical reimbursement
Leave travel allowance
Child education
Child hostel
Gratuity
Provident und
Grade pay
Total
Amount (Rs)
3,22,926
32,292
1,29,170
19,200
15,000
26,910
1,200
3,600
15,532.74
42,626.23
1,98,856.53
8,07,315.00
For assistant marketing manager
Particulars
Basic
Dearness allowances
House rent allowances
Conveyance allowances
Medical reimbursement
Leave Travel allowances
Child education
Child hostel
Gratuity
Provident fund
Grade Pay
Total
Amount (Rs.)
152,001.60
15,200.16
60,800.64
19,200.00
15,000.00
12,666.80
1,200.00
3,600.00
7,311.28
20,064.21
72,959.31
3,80,004.00
24
IndiGo
human
resource
Company in news
Mar 11, 2016: IndiGo receives first Airbus A320neo after delay
Aug 20, 2016: Domestic air traffic sees 'record' 26% growth in July
Aug 26, 2016: IndiGo seeks shareholder nod to up borrowing cap to Rs 20,000 cr
Sep 01, 2016: Jet, InterGlobe, Spice up 1-3% on aviation fuel price cut
Sep 14, 2016: InterGlobe Aviation appoints Sanjay Gupta as company secretary
Sep 16, 2016: Indigo enters partnership with travel commerce portal Travelport to distribute
its fares and ancillary products at portals customer. Travelport is global distribution system
player.
Sep 27, 2016: Feud between Air India and indigo escalated over an advertising hoarding at
Delhi airport.
Oct 6, 2016: Go air challenges go in IndiGo name
Oct 13, 2016: IndiGo introducing 47 new flights to cater to festival rush to and from Kolkata
at time of Durga puja.
Oct 27, 2016: InterGlobe Aviation's board meeting on November 08, 2016
Nov 08, 2016: IndiGo's quarterly net profit jumps 24% to Rs 140 crore. It had a net profit of
Rs. 113 crore last year.
NOV 14, 2016: IndiGo to start a non-stop direct Chennai- Muscat flight from Dec 15, 2016
with an introductory price of Rs. 7999. The introduction of new flight will help further
strengthen company presence with 16 flights.
25
Why IndiGo is successful?

At the time when whole aviation industry in India was struggling to keep their losses low, at that time
IndiGo was working to become more profitable year on year. How this is achieved remains a question of
research for industry pundits. There are some reason which tells how IndiGo was able to do so
Once when other players in Indian aviation industry were busy buying rivals, flew multiple
flights and struggled to mix full service and low fare service, indigo stuck with its low fare policy
of offering one class of no-frill service on a single type plane.
Indigo used a selling and leaseback agreement which helped indigo in maintaining a young fleet
of airplanes by constantly replacing old airplanes. This prevented the overall need for check and
maintenance cost. Indigo price were only 40% of their operation cost in first 4 years, it was
impossible to make profit at such low fares. To give themselves a pricing advantage they added a
plane every 6 weeks in 2006.
Rahul Bhatia's (owner of indigo) obsession with detail and quality was also one of the reason.
IndiGo's executives, including staff at the check-in counters, air crew and sales and marketing
staff are hired only after Bhatia meets each of them individually. Besides, the airline also employs
far fewer people, with one of the industry's leanest work forces.
Turnaround time of IndiGo is 30 min i.e. time taken to ready the plan between landing and next
take off. A report in the Business Standard had said earlier that IndiGo's aircraft spend more than
11 hours a day in the sky, compared to the industry average of eight or 10 hours.
IndiGo's success model largely relies on consistent low fares, regular on-time performance and
minimal flight cancellations. However, the airline's biggest edge over others is its focus on
customer. Fliers want on time journey at reasonable prices and this has helped IndiGo inch past
stalwarts to reach this milestone. Other airlines advertise low fares, marketing or other
promotional offers on their websites, IndiGo only emphasizes on-time performance.
Unlike manual systems used by other airlines, IndiGo planes are equipped with a digital link
system for transmission of short, simple messages between aircraft and ground stations via radio
or satellite called Aircraft Communications Addressing and Reporting System (ACARS). Before
every IndiGo flight departs an automatic message is triggered from the aircraft to its operations
control center - and immediately the same departure time gets recorded in the software. Similarly,
the moment the flight lands an automatic message is triggered from aircraft to control center.
Hence, the on-time performance is diligently monitored for every flight in real time.
26
Bibliography
Reports
FICCI- KPMG India aviation report 2016
Website
ICAO International civil aviation organization http://www.icao.int/Pages/default.aspx

IATA International air transport association http://www.iata.org/Pages/default.aspx
DGCA Directorate general of civil aviation http://www.dgca.nic.in/
IBEF
AAI Airport authority of India http://www.aai.aero/public_notices/aaisite_test/main_new.jsp
REUTERS http://in.reuters.com/news/picture/flight-attendant-training?articleId=INRTR4HJOZ
http://www.caeoaa.com/indigo/international-pathway/
INTERGLOBE ENTERPRISE https://www.interglobe.com/
LINKIDEN
FACEBOOK
DNA INDIA http://www.dnaindia.com/money/report-indigo-leads-with-384-market-share-jetairways-air-india-follow-in-march-2204915
PAYSCALE
IFLY http://www.ifly.com/indigo-airlines
THE
HINDU
http://www.thehindu.com/features/magazine/how-indigo-escaped-theblues/article3588294.ece
GLASSDOOR
INVESTOPEDIA
FIRSTPOST
http://www.firstpost.com/business/5-reasons-why-indigo-is-market-leader-today424550.html
Economic times
27

Aviation Industry

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PROJECT REPORT ON INDIGO

PROJECT REPORT ON INDIGO

GDP contribution to world economy

Contribution to the world GDP

Global financial services industry

PROJECT REPORT ON INDIGO

Economic benefit of aviation industry

PROJECT REPORT ON INDIGO

Global trend in civil aviation

Source: IATA- international air transport association

PROJECT REPORT ON INDIGO

INTERNATIONAL BODIES REGULATING AVIATION INDUSTRY

PROJECT REPORT ON INDIGO

Contribution to the Indian Economy

Domestic airline demand

Domestic airline capacity

Available seat kilometer

Departing and arriving

Total passenger domestic and

Available seat kilometer (ASK)

PROJECT REPORT ON INDIGO

CAPACITY VS DEMAND IN DOMESTIC MARKET OVER THE PAST DECADE

PROJECT REPORT ON INDIGO

Passenger Traffic (millions)

PROJECT REPORT ON INDIGO

Porters five force analysis:

PROJECT REPORT ON INDIGO

PROJECT REPORT ON INDIGO

About the company:

InterGlobe Aviation Limited

PROJECT REPORT ON INDIGO

Financial details of the company:

Rs. 166,013.02 million

a) Promoting education and eradicating poverty, hunger and

PROJECT REPORT ON INDIGO

Shareholding pattern of the company

Shareholding pattern of Indigo

Promoters of the company:

PROJECT REPORT ON INDIGO

Shareholding of the promoter group

Market Share of the company:

PROJECT REPORT ON INDIGO

Domestic Market Share in terms of Passengers Carried 2015-16

Market Share in terms of Domestic Market Demand(RPK)

PROJECT REPORT ON INDIGO

Market Share in terms of International Operations

Air India Express

PROJECT REPORT ON INDIGO

Source: DNA India

No of employees of the company:

Total number of Permanent employees

PROJECT REPORT ON INDIGO

Organizational structure of the company:

PROJECT REPORT ON INDIGO

PROJECT REPORT ON INDIGO

Employee Engagement, Training and Development in the company:

Training program for future pilots

IFLY Training Institute for air hostess

PROJECT REPORT ON INDIGO

MBA/PGDM having minimum 0-5 years of experience in advertisement and promotion.

Branding and advertising through a mix of conventional and unconventional media.

Good communication and interpersonal skills

PROJECT REPORT ON INDIGO