A Strategic Analysis of IndiGo Airlines

Abstract

IndiGo is the largest passenger airlines in Indian domestic market with a stellar 48% market share (in terms of passenger volume, as on Sep ’19) and operates as a low-cost carrier. The parent company of Indigo, InterGlobe Air Transport started its journey on 1989 as General Sales Agent (GSA) for Virgin Atlantic (India), Delta Airlines & China Eastern Airlines & rapidly expanded its presence. After understanding the business as a GSA, they moved into airlines industry as a Carrier with 100 orders of A320 aircraft, biggest in airlines history, in 2005 and established IndiGo. Indigo started off its operations in 2006 as an airline which offered no business class seats, no loyalty program and no free meals but with a promise of low fares and on-time arrival. Major players like Jet Airways, Kingfisher and Air India did not seem to care for these features. Also, an attempt by Deccan Airways in the low-cost carrier segment was already failing. So, this low-cost aviation did not seem to be an attractive business to be in.