Core competencies of Indigo Airlines Essay

1. save debt free company in the aviation sector It has enough cash in his kitty to sustain itself for another devil years. With the amount of cash that indigo possesses it forget surely be one of the striking players in the low-pitched- make up space globally with its expected fleet sizing of or so 100 planes by the year 2016. indigo plants fleet makes up almost 6.5% of Indias combined fleet size and comparing this figure with the market parcel of 27.40%.2. Word of Mouth & ampere repeat Customers indigotin has hardly advertised and indulged in brand building activities. It spends less than 1% of r crimsonue on marketing. It is only tardily that it started to realize the value of advertising and launched a couple of ads. The secret behind the spacious success of the airline is the word of communicate advertising & repeat purchases by the guests. Indigo outperformed its rivals by establishing a unlikeness it created greater value to its customers at demoralize pr ice. Hence, Delivering greater value allowed them to charge higher(prenominal) and Greater efficiency resulted in lower berth average costs.3. Price Sensitive & Time Sensitive The company achieves cost advantage through various processes much(prenominal) as avoiding the in flight services, No free meals, Highest no. of shoess in the aircraft, Lower employees per aircraft, Lightest passenger basiss in India which weigh only 12.8 kgs and using pigment which overall weights 50 Kgs less. Indigo has disquieted up the job into small parcels with cadence targets and each of these is monitored. They have even turn around an aircraft in 14 minutes.4. practicable Efficiency & Innovation- Indigo has assemble up a centralized operations control centre which monitors the weather, anticipate delays and even provides advance information to the ground staff. comely age of the fleet is about 1 year, the occurrence of technical faults are low and hence less maintenance issues. Beca use of this Indigo has managed to achieve high On-Time performance. Indigo keeps implementing refreshful and innovative ideas to increase the quality of customer service. Recent example is Indigo has nomadic check-in counters where passengers with only cabin luggage can check-in with an Indigo authoritative with a handheld device, rather than ocean liner up at the check-in counter. designing Success of Indigo Airlines (Load Factor)Indigo has describe a Load Factor of 75.7% when the manufacturings average was 65.6% * Load figure represents the proportion of airline output that is really consumed. To calculate load factor, divide RPMs by ASMs * RPM(Revenue Passenger Miles) It is calculated by dividing passenger revenue by available seat miles * ASM (Available Seat Miles) -One aircraft seat flown one mile, whether occupied or not. For example-An aircraft with 200 passenger seats, flown a distance of 200 miles, generates 40,000 available seat miles.