Core competencies of Indigo Airlines Essay

1. Only debt fire confederation in the aviation sector It has fair to middling cash in his kitty to sustain itself for another two years. With the amount of cash that indigo possesses it will surely be one of the big players in the grim-cost space globally with its expected bat size of about 100 planes by the year 2016. Indigos fleet makes up virtually 6.5% of Indias combined fleet size and comparing this figure with the market share of 27.40%.2. Word of spill & Repeat Customers Indigo has hardly advertised and indulged in brand building activities. It spends less than 1% of receipts on marketing. It is only lately that it started to realize the value of advertising and launched a couple of ads. The secret back tooth the immense success of the airline is the word of mouth advertising & repeat purchases by the customers. Indigo outperformed its rivals by establishing a difference it created greater value to its customers at lower price. Hence, Delivering greater value allow ed them to charge high and Greater efficiency resulted in lower average costs.3. Price Sensitive & Time Sensitive The company achieves cost advantage through various processes such as avoiding the in flight services, No free meals, Highest no. of targets in the aircraft, Lower employees per aircraft, Lightest passenger seats in India which weigh only 12.8 kgs and development paint which overall weights 50 Kgs less. Indigo has broken up the job into small parcels with time targets and separately of these is monitored. They have even turned around an aircraft in 14 minutes.4. Operational Efficiency & Innovation- Indigo has model up a centralized operations control centre which monitors the weather, anticipate delays and even provides advance information to the ground staff. Average age of the fleet is about 1 year, the occurrence of technical faults are low and hence less maintenance issues. Because of this Indigo has managed to achieve high On-Time performance. Indigo keeps imp lementing new and innovative ideas to amplification the quality of customer service. Recent example is Indigo has roving check-in counters where passengers with only cabin baggage can check-in with an Indigo official with a handheld device, rather than lining up at the check-in counter.Calculating Success of Indigo Airlines (Load Factor)Indigo has reported a Load Factor of 75.7% when the intentnesss average was 65.6% * Load factor represents the proportion of airline output that is actually consumed. To calculate freight 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 two hundred passenger seats, flown a distance of 200 miles, generates 40,000 available seat miles.