Assignment for understanding the business of Indigo Airlines as of July 2015

1. Presented by
Ankur Madharia
1502034
“Go IndiGo”

2. To be the best Airline in India by providing the following values to the customer:
- Affordable Fares
- On-time performance
- Hassle-free Service
Mission Statement

3. Company Owners
• Set up in early 2006 by Rakesh Gangwal and Rahul Bhatia, of InterGlobe Enterprises.
• InterGlobe holds 51.12% stake in IndiGo and 48% is held by Caelum Investments, a Virginia, US based
firm, run by Rakesh Gangwal.

4. The only airline to make a profit in the low-cost aviation segment during 2011-12 and 2012-13.
Has a fleet size of 93, largest in India.
Received lowest number of complaints per passenger in India.
Provides its service at 38 destinations in India, 5 overseas.
Operates more than 600 flights a day
On-time performance of 94.3%
SomefactsaboutIndiGo

5. • InterGlobe sets up infotech services with Galileo International1999
• PartnershipwithAccorHotelsGroup2002
• 100 orders of Airbus A320 aircrafts2005
• IndiGo airlines makes its debut2006
• 1 million passengers
• Introduction of 1st and only stepless ramps
2007
• Becomes no. 3 airline by overtaking Air India2010
• Launch of its 1st international flight
• Placed order of 180 new aircrafts
2011
• Becomes largest airline in India by overtaking Jet
• Launched its mobile app “GoIndiGo”
2012
• Very close to 100 million passengers
• Operating 600 flights a day2015
MILESTONES

6. AWARDS

7. IndiGo
39%
SpiceJet
12%
GoAir
9%
JetAirways/ JetLite
22%
Air India
16%
Vistara
2%
Market Share
IndiGo SpiceJet GoAir JetAirways/ JetLite Air India Vistara

8. FINANCIALS
Net Revenues INR 11,117 crore
Passenger Revenues INR 9,924 crore
Net Profits INR 720 crore
Revenue per passenger INR 4.29
Revenue per seat-km INR 3.78
Market Share 36.4%
FY 2014-15 FY 2015-16
Net Debt INR 2,474 crore
Target IPO INR 2,536 crore
Net Valuation INR 19,500 crore
Market Share 39%

9. Strengths
Strong backing
Promoters
Consistent profits
One of the major
airlines in India in
terms of market share
LCC (brand value)
Good advertising
strategies
Weaknesses
Not on too many routes
Need to establish itself
on internationally
Opportunities
Opening up of
International routes
Largest marketshare
among LCCs in Indian
Market
Middle Class taking to
the skies
Threats
Plenty of new LCCs to
compete with
Rising Labour costs and
changing govt policies
Rising Fuel Costs

10. COVERAGE

11. • Hoarding at airports
• Social networking media - Facebook, Twitter, YouTube
• Multi- storeyed building and offices.
• Magazines.
• Sponsoring fashion shows, talent hunts, new year parties, etc.
Advertisement Strategy

12. • Single type of airplane to reduce training and service cost
• On time performance
• High Passenger load factor – Flight occupancy percentage
• One of the lowest Cancellation rate in industry
• Lean Workforce
• No frills such as free food/drinks, lounges
Success Factors

13. Growth Prospects
• Potential to become a global leader amongst low cost carriers.
• Expected fleet size of 120 planes by 2016.
• Valued at $3 billion (INR 2,600 crore).
• Brand building through advertisements using the profits.
• Use the social media platform to ramp up their presence when millions of fans already love them for this.
• InterGlobe Aviation, the airline’s holding company, has filed its draft prospectus with the market regulator this
week and is expected to raise close to $400 million by selling an estimated 12% of its shares.

14. Thank you