IndiGo

IndiGo
IATA ICAO Callsign
6E IGO IFLY
Founded 2006
Commenced operations 8 April 2006 (2006-04-08)
Operating bases
Fleet size 141
Destinations 46
Parent company InterGlobe Enterprises
Traded as BSE: 539448
NSE: INDIGO
Headquarters Gurugram, Haryana, India[1]
Key people Rakesh Gangwal, Co-Founder
Rahul Bhatia, Co-Founder and MD
Aditya Ghosh, President
Revenue Increase ₹16,601 crore (US$2.6 billion) (FY2016-2017)[2]
Net income Increase ₹1,989 crore (US$310 million) (FY2016-2017)[2]
Employees 12,362 (2015–16)[3]
Website www.goindigo.in

IndiGo is a low-cost airline headquartered at Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 41.2% market share as of May 2017.[4] It is also the largest individual Asian low-cost carrier in terms of jet fleet size and passengers carried, and the eighth largest carrier in Asia with over 41 million passengers carried in 2016. The airline operates to 46 destinations both domestic and international. It has its primary hub at Indira Gandhi International Airport, Delhi.

The airline was founded as a private company, by Rahul Bhatia of InterGlobe Enterprises; and Rakesh Gangwal, a United States-based expatriate Indian; in 2006. It took delivery of its first aircraft in July 2006 and commenced operations a month later. The airline became the largest Indian carrier in passenger market share in 2012. The company went public in November 2015.

History

IndiGo was founded in 2006 as a private company by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal, a United States-based NRI.[5] InterGlobe had a 51.12% stake in IndiGo and 47.88% was held by Gangwal's Virginia-based company Caelum Investments.[6][7] IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in mid-2006.[8] IndiGo took delivery of its first Airbus aircraft on 28 July 2006, nearly one year after placing the order.[9] It commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati.[10] By the end of 2006 the airline had six aircraft and nine more aircraft were acquired in 2007.[10] In December 2010, IndiGo replaced state-run carrier Air India as the third largest airline in India, behind Kingfisher Airlines and Jet Airways with a passenger market share of 17.3%.[11]

In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in a deal worth US$15 billion.[12] In January 2011, after completing five years of operations, the airline got permission to launch international flights.[13] The airline launched international services in September 2011.[14] In December 2011, the DGCA expressed reservations that the rapid expansion could impact passenger safety.[15]

In February 2012, IndiGo took delivery of its 50th aircraft, less than six years after it began operations in 2006.[16] For the quarter ending March 2012, IndiGo was the most profitable airline in India and became the second largest airline in India in terms of passenger market share.[17] On 17 August 2012, IndiGo became the largest airline in India in terms of market share surpassing Jet Airways, six years after commencing operations.[18]

In January 2013, IndiGo was the second-fastest-growing low-cost carrier in Asia behind Indonesian airline Lion Air.[19] In February 2013, following the announcement of the civil aviation ministry that it would allow IndiGo to take delivery of only five aircraft that year, the airline planned to introduce low-cost regional flights by setting up a subsidiary. Later, IndiGo announced that it planned to seek permission from the ministry to acquire four more aircraft, therefore taking delivery of nine aircraft in 2013.[20] As of March 2014, IndiGo is the second-largest low-cost carrier in Asia in terms of seats flown.[21]

In August 2015, IndiGo placed an order of 250 Airbus A320neo aircraft worth $27 billion, making it the largest single order ever in Airbus history.[22] IndiGo announced a ₹3,200 crore (US$500 million) initial public offering on 19 October 2015 which opened on 27 October 2015.[23] [24]

Corporate affairs and identity

IndiGo uses as an Indigo-sky blue livery as seen on the Airbus A320 aircraft

IndiGo is headquartered in Gurgaon, India.[1]

Logo and livery

Twenty dots arranged in the shape of an aircraft serves as the logo of the airline.[25] The airline uses a two tone blue livery on a white background with the belly of the aircraft painted in Indigo with the logo in white.[26] The flight attendants wear a single-piece navy-blue tunic with a cap and a thin indigo belt designed by fashion designer Rajesh Pratap Singh and make-up artist Ambika Pillai.[27] The airline has the tagline on-time focusing on punctuality.[27]

Expression of interest in Air India

On 30th June 2017, in a letter written to Minister of Civil aviation, IndiGo expressed interest in acquiring Air India's international operations and its subsidiary, Air India Express. [28] IndiGo called an investor's conference call on 6th July 2017 to further elaborate its Air India acquisition plans.

Air India’s international operations would bring a very important element to our network,” IndiGo’s billionaire co-founder Rahul Bhatia told analysts on a conference call to discuss the airline’s move to buy into the unprofitable and highly indebted carrier. “It will provide a rapid entry into restricted, and in some cases, closed international markets. IndiGo will gain access to Air India’s routes and workers by buying the international operations, which would otherwise take a “long, long time” to replicate, Gangwal said. [29]

Low Cost Long Haul plans

In the same conference call, IndiGo also announced it will launch low cost long haul operations, irrespective of how Air India acquisition plans work out.

It’s about time that IndiGo enters the long-haul international market and take advantage of this opportunity... we would not attempt the long-haul market but for this large domestic feed network,” he said in the call. “Irrespective of how the Air India story plays out and based on all our internal work, we are generally of the view that it makes fundamental economic sense to enter the international long-haul market. [30]

Operations

IndiGo became one of the fastest growing low cost carriers in the world and was the largest profitable airline in India.[19] The success of IndiGo has been attributed to its unique business model which reduces costs.[17] The airline operates a single type of aircraft (Airbus A320) in similar seating configuration which simplifies crew training and maintenance.[17] The airline strikes bulk deals with Airbus reducing unit costs.[17] The airline targets a quick turn-around time of 20 minutes to get the aircraft ready for the next flight, ensuring planes fly about 12 hours every day.[31] Employees share multiple roles with a check-in staff doubling as a baggage handler.[31]

Destinations

As of March 2016, IndiGo operates 918 daily flights to 48 destinations, 41 in India and 7 abroad.[32][33][34] Its main base is located at Delhi,[35] with additional bases at Bangalore,[36] Chennai,[37] Hyderabad,[38] Kolkata,[37] Mumbai,[37] Jaipur and Ahmedabad.[39] In January 2011, IndiGo received a license to operate international flights after completing five years of operations.[40] IndiGo's first international service was launched between New Delhi and Dubai on 1 September 2011.[14] International services were later expanded to serve Bangkok, Singapore, Muscat, Kathmandu, Sharjah & Doha.[14]

Fleet

IndiGo Airbus A320neo
An Airbus A320 in IndiGo colors before delivery at Toulouse

In order to reduce operational overhead, IndiGo operates only the Airbus A320 family of aircraft in its fleet. As of 31 July 2017, IndiGo operates the following aircraft:[41]

IndiGo fleet
Aircraft In Service Orders Passengers Notes
Airbus A320-200 119 — 180
Airbus A320neo 22 388[41][42] 180 Largest operator of A320neo family.
Airbus A321neo — 20[41][42]
TBA
 Converted from original A320neo order.[42]
ATR-72-600 — 50 [43]
TBA
 First delivery by end of 2017, 20 expected by December 2018. [44]
Total 141 458  

Fleet developments

IndiGo placed an order for 100 Airbus A320-200 aircraft worth US$6 billion in June 2005 during the Paris Air Show with plans to commence operations in mid-2006.[8][45][46] The airline received its first A320 in July 2006 and planned to induct 100 aircraft by 2015–2016.[47] IndiGo signed a memorandum of understanding for an additional 180 Airbus A320 aircraft including 150 with the New Engine Option (NEO) worth US$15 billion on 11 January 2011. In 2012, the airline took delivery of its 50th aircraft[16] and the 100th aircraft was delivered on 4 November 2014, completing its initial order ahead of schedule.[48]

The Airbus A320neo family aircraft ordered in 2011 were to be delivered starting 2015.[49] However, due to a delay in the production and delivery of these aircraft, IndiGo dry-leased a total of 22 used aircraft to cope with the demand.[50] On 15 October 2014, IndiGo expressed its intention to order a further 250 A320neo aircraft worth US$25.7 billion at list prices.[51] On 15 August 2015, IndiGo confirmed the order for 250 A320neo aircraft for $26.5 billion. The order also provides IndiGo the flexibility to convert some A320neos to A321neos that can seat more passengers and fly on longer routes.[52] The order of 250 jets was Airbus' single largest order by number of aircraft.[53] Indigo received the first A320neo in March 2016.[54][55]

In May 2017, IndiGo has tentatively signed for 50 ATR 72-600 for the UDAN regional connectivity scheme, to be delivered from the year end for up to 20 by the end of 2018.[56]

Services

Being a low-cost carrier, IndiGo offers only economy class seating accommodating 180 passengers per aircraft. To keep fares low, IndiGo does not provide complimentary meals in any of its flights, though it does have a buy-on board in-flight meal programme.[57] No in-flight entertainment is available and Hello 6E is the in-flight magazine published by IndiGo.[58] IndiGo offers premium services, where the passengers can avail additional benefits like a pre-assigned seat, multiple cancellations and priority check-in at a higher fare.[59] Indigo also has a In-Flight Shop in which you can buy models and other daily use items.

Awards and achievements

IndiGo has won the following awards:

See also

References

  1. 1 2 "Contact us, IndiGo". IndiGo. Retrieved 19 March 2016.
  2. 1 2 "IndiGo profit soars 53% in fiscal 2016". The Hindu Business Line. Retrieved 4 November 2016.
  3. ↑ Rajesh Pandathil and Kishor Kadam (June 6, 2017). "Air India has 5 times more debt than Jet Airways, 16 times than IndiGo: A comparison in 15 charts". Firstpost. Retrieved June 9, 2017.
  4. ↑ http://dgca.nic.in/reports/Traffic_reports/Traffic_Rep052017.pdf
  5. ↑ "Owner of India's biggest airline files for IPO". CNBC. 30 June 2015. Retrieved 16 March 2016.
  6. ↑ Padnis, Anees (16 November 2013). "IndiGo gives handsome payback to promoters". Business Standard. Retrieved 19 March 2016.
  7. ↑ "FIPB approves proposal to convert Rakesh Gangwal's IndiGo stake to NRI category". The Economic Times. 2 October 2014. Retrieved 16 March 2016.
  8. 1 2 "IndiGo Airlines to fly soon". The Economic Times. 22 June 2005. Retrieved 16 March 2016.
  9. ↑ "IndiGo takes delivery of its first brand new Airbus A320 aircraft". The Hindu. 29 July 2006. Archived from the original on 29 July 2006. Retrieved 16 February 2012.
  10. 1 2 "Indigo's first flight to take-off on Aug 4". The Economic Times. 13 July 2006. Retrieved 16 March 2016.
  11. ↑ "IndiGo pips Air India to become No. 3 airline". Indian Express. 21 December 2010. Retrieved 16 March 2016.
  12. ↑ "IndiGo airline picks up 180 jets". The Economic Times. 13 January 2011. Retrieved 16 March 2016.
  13. ↑ "IndiGo gets govt nod to launch international operations". Rediff. 11 January 2011. Retrieved 13 March 2016.
  14. 1 2 3 Kumar, Vinay (14 June 2011). "IndiGo to launch international flights from Sept. 1". The Hindu. Retrieved 22 February 2012.
  15. ↑ "IndiGo, SpiceJet airlines violate mandatory safety norms: DGCA". India Today. 9 January 2012. Retrieved 13 July 2012.
  16. 1 2 "IndiGo gets delivery of its 50th Airbus A-320 aircraft". The Economic Times. 10 February 2012. Retrieved 16 March 2016.
  17. 1 2 3 4 Mishra, Mihir (21 February 2012). "A tale of two airlines: Kingfisher vs IndiGo". Business Standard. Retrieved 19 March 2016.
  18. ↑ "IndiGo flies past Jet to become largest airline". Business Standard. 18 August 2012. Retrieved 18 August 2012.
  19. 1 2 "IndiGo among the fastest expanding airlines globally". Business Standard. 2 January 2013. Retrieved 11 January 2013.
  20. ↑ "IndiGo to set up regional airline to tap small towns". The Economic Times. 13 February 2013. Retrieved 14 February 2013.
  21. ↑ Sobhie, Brent. "Analyst Viewpoint: Asian airline industry overview" (PDF). CAPA: 25. Retrieved 19 March 2016.
  22. ↑ "IndiGo orders 250 planes". Times of India. 18 August 2015. Retrieved 19 March 2016.
  23. ↑ "IndiGo Airlines IPO to open on October 27, price band Rs 700-765". The Economic Times. 20 October 2015. Retrieved 14 February 2013.
  24. ↑ S V Krishnamachari (21 November 2016). "Domestic air traffic: How IndiGo, Jet Airways, SpiceJet, Air India, Go Air, AirAsia India, Vistara performed in October". IBTimes.co.in. International Business Times. Retrieved 30 January 2017.
  25. ↑ "IndiGo Experience". IndiGo. Retrieved 19 March 2016.
  26. ↑ "The man behind IndiGo's amazing success". Rediff. 8 February 2011. Retrieved 19 March 2016.
  27. 1 2 Saxton, Aditi (17 February 2011). "The IndiGo brand story". CNN. Retrieved 19 March 2016.
  28. ↑ https://twitter.com/nagarjund/status/880444892433891328/photo/1
  29. ↑ http://www.livemint.com/Companies/5x9e9TAZSUIlPFZ9aWZkkM/IndiGo-owners-invoke-UnitedPan-Am-deal-to-justify-Air-India.html
  30. ↑ http://www.livemint.com/Companies/tzfl32yod7XkOtN0VDouMM/IndiGo-says-keen-only-on-Air-Indias-international-lowcost.html
  31. 1 2 Mehta, Vivan (24 June 2012). "Soaring above the rest". Business Today. Retrieved 19 March 2016.
  32. ↑ "Airlines to operate 14,869 flights per week in summer schedule". The Economic Times. 18 March 2016. Retrieved 19 March 2016.
  33. ↑ "IndiGo adds 8 new daily flights". DNA. 27 January 2016. Retrieved 4 March 2016.
  34. ↑ "IndiGo soars above Jet Airways, Air India". Mint. 23 June 2015. Retrieved 27 June 2015.
  35. ↑ "Profile on IndiGo". CAPA. Retrieved 19 March 2016.
  36. ↑ "IndiGo adds to Bengaluru base". Anna.aero. 16 February 2016. Retrieved 3 June 2016.
  37. 1 2 3 "IndiGo commences seventh route to Dubai". Anna.aero. 17 December 2014. Retrieved 3 June 2016.
  38. ↑ "IndiGo starts new domestic route from Hyderabad". Anna.aero. 6 August 2014. Retrieved 3 June 2016.
  39. ↑ Nair, Aparna (8 July 2014). "IndiGo to park four planes at Nagpur airport". The Times of India. Retrieved 3 June 2016.
  40. ↑ "IndiGo Airlines to fly to Dubai, Bangkok, Singapore from September". The Economic Times. New Delhi. 14 June 2011. Retrieved 22 February 2012.
  41. 1 2 3 Airbus Orders and Deliveries (XLS), accessed via "Orders & Deliveries". Airbus. 31 July 2017. Retrieved 6 August 2017.
  42. 1 2 3 Kotoky, Anurag (22 September 2016). "IndiGo switches to larger Airbus A321s instead of smaller A320neos". livemint.com. New Delhi: live mint. Retrieved 25 September 2016.
  43. ↑ http://www.atraircraft.com/newsroom/pressrelease/atr-89-aircraft-sold-since-the-beginning-of-the-year-1453-en.html
  44. ↑ https://www.goindigo.in/content/dam/goindigo/investor-relations/Financial%20Results/2016-17/q4-jan-to-mar-2017/Earnings-Presentation-Q4-FY17.pdf
  45. ↑ "Airbus wins $6bn order from India". BBC News. 16 June 2005. Retrieved 30 August 2010.
  46. ↑ "Airbus Orders and Deliveries". Airbus. Retrieved 30 August 2010.
  47. ↑ "IndiGo celebrates delivery of first Airbus A320". Airbus (Press release). 28 July 2006. Retrieved 19 March 2016.
  48. ↑ "IndiGo gets 100th aircraft completing its first order of many Airbus A-320". The Economic Times. 4 November 2014. Retrieved 4 November 2014.
  49. ↑ Sinha, Saurabh (13 January 2011). "Aircraft order is just a drop in ocean: IndiGo". Times of India. Retrieved 13 January 2011.
  50. ↑ "Airbus delays A320neo delivery for Indian airline IndiGo". Reuters. 21 December 2016. Retrieved 19 March 2016.
  51. ↑ "40 billion jet spending spree". Yahoo. 16 October 2014. Retrieved 19 March 2016.
  52. ↑ "Would be foolish to not focus on India, says IndiGo airlines president Aditya Ghosh". The Economic Times. 27 August 2015. Retrieved 19 March 2016.
  53. ↑ "IndiGo signs MoU for 250 A320neo aircraft". Airbus (Press release). 15 October 2014. Retrieved 19 March 2016.
  54. ↑ "IndiGo commits to 180 A320s, largest jet order in aviation history". Airbus (Press release). Airbus. 1 November 2011. Retrieved 14 January 2011.
  55. ↑ "Airbus and AirAsia announce record deal for 200 planes". BBC. 23 June 2011. Retrieved 23 June 2011.
  56. ↑ David Kaminski-Morrow (9 May 2017). "IndiGo tentatively signs for 50 ATRs". Flight Global.
  57. ↑ "IndiGo FAQ's". IndiGo. Retrieved 13 November 2013.
  58. ↑ "Coffee with 6E". Mint. 26 October 2015. Retrieved 19 March 2016.
  59. ↑ "IndiGo 6E Plus". IndiGo. Retrieved 13 March 2016.
  60. 1 2 3 4 "IndiGo makes it three in a row with CNBC AWAAZ Travel Award '09". domain-b.com. 1 September 2009. Retrieved 13 July 2012.
  61. ↑ Neogi, Subhro (8 Oct 2015). "IndiGo named CAPA low cost carrier of the year at World Aviation Summit". The Times of India. Retrieved 19 March 2016.
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