Indigo Airline 6E The best low-cost Airline #lean clean flying machine

Indigo Airline 6E The best low-cost Airline

Indigo Airline 6E The best low-cost Airline #lean clean flying machine, was Founded in 2005 and started its operations on 4th August 2006. Today they are the king of the Indian aviation with a market share of 40-50% and growing at a high speed and have connectivity to tire 1,2,3 city.

As  Maruti Suzuki gives a privilege to the middle class in India to Own a Car same Indigo Airline 6E The best low-cost Airline does with Indian Aviation Industry they bring the concept of Low-Cost Carrier (LCC) where all other airlines focus on services and luxury that lead to increase the cost of operations and ticket cost is more, but indigo reduce the facilities and make the ticket price low as much as possible. 

Indigo Airlines 6E knows “People are willing to live king size but not willing to pay king size” as in India price is more important than the service they get.

Business Model of Indigo Airlines

Business Model of Indigo Airline 6E The best low-cost Airline, they started as the LCC with a limited amount of facilities such as No In-flight Entertainment (IEF), No First class or Business class, No free in-flight Meal, Cost for windows seats, no Frequent flyer program, and also use of only Narrow Body Aircraft Airbus A320/321. It results in the reduction of operational costs in comparison to other airlines where they are giving the most luxury service like Kingfisher.  

Indigo Sale-and-leaseback model     

The sale and Leaseback Model is one of the reasons for huge success as when indigo Airline 6E started that time Airbus is struggling to get into the Indian market Indigo used this opportunity and ordered the A320 and that received a huge discount at that time and later they sell the Aircraft to the leasing company at some profit and also Leasing company get aircraft at less price than market price and then Indigo take the same aircraft on lease from the leasing company and save cost on maintenance and Leasing company also get sure customer and there risk also reduced. It results in a lot of cost savings let me explain the same with an example. 

Airbus A320 costs around USD 46.65M and Indigo gets each aircraft at USD 25M and later sells the same to a Leasing company at USD 30M at this point they already make a profit and then they lease the same aircraft and pay leasing cost which is very less than new aircraft cost and leasing an aircraft provided more benefits such as aircraft maintenance is the done by the leasing company. 

This help Indigo Airlines 6E have more Cash In Hand then other Airline which they can put into business during recession period and make comes back faster than the competition.

You are surprised to know approx. 80% of Aircraft are on lease and indigo Airlines has the largest fleet in Indian aviation.

Indigo Airline use Single Type of Aircraft 

Use of Single Type of Aircraft , Like other airlines they have a fleet of more than one type of Aircraft Air India have A320, B787, and B777 which result in more training and maintenance cost as an airline gives training to staff for all type of Aircraft, and here Indigo opted for A320 which is best for Domestic flights as it has good fuel efficiency and Indigo need less staff as other airline can’t use same staff on every aircraft but indigo can use as they have only one kind of aircraft. that’s why Indigo Airline 6E The best low-cost Airline

Other Business Strategy of Indigo Airlines

1- Only Female Cabin Crew as females weight is less then Males weight which results in cost savings

2- Main focus on Cost reductions not on luxury travel 

3-No Frequent flyer Programs

4- Highest route connectivity 

5-On-Time Performance

As Maruti Suzuki rules the Car market and Indigo 6E rules the Aviation market hope it will grow like this in the future and rules the Indian Sky #Go IndiGo

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