Those airlines which adopted this business model operate on no-frills and offers low cost tickets and less comfort. Generally these are also called budget airlines. LCC is the most successful business model in domestic aviation. As of now there are 4 low cost airlines operating in India and they are Indigo, Spicejet, Go Air and Jet Lite. Indigo airline is showing consistent profits every year whereas the others are reducing their debts.
Indigo:
Indigo is the most successful airline compared to all airlines in India. The reason for its success is that it employed a good business model and used cost leadership strategy to differentiate its business model from other competitors. It concentrated on reducing its operating cost and input costs which …show more content…
The deal is that each aircraft will be returned back to the manufacturer after 6 years. Similar huge deals were done in 2011 where it ordered 180 A320 neo aircrafts and 250 A320 neo in 2014. By observation it is evident that Indigo is planning its fleet size 10 years well in advance. This planning not only reduces operational costs for airlines but also increase the bargaining power with the manufacturer.
2) Fleet Commonality:
The whole fleet of Indigo consists of Airbus 320-200 aircrafts. This fleet commonality helps Indigo to cut overhead costs. It can use the same staff from ground force to the pilots. This gives an advantage by saving the training and hiring costs.
2) Single Class:
Indigo fleet of A320-200 consists of single economy class. The aircraft consists of 180 seats. It won’t provide any luxury seats known as business class seats. As a result of this the same crew looks after the passengers and also same service to everyone.
3) Low Average Fleet …show more content…
So airlines should use efficient methods to reduce the effect of fuel prices. Indigo is one of the first Indian airline to use a Sharklet equipped A320. Sharklets improve the aircrafts aerodynamics and reduce 4% burning of fuel and emissions in longer sectors (). Indigo placed an order of 150 A320 neo which have a fuel efficiency of 15 % than the previous model().It also uses fuel hedging method from 2007 after the permission from the government.
5) No-frills Model:
Indigo operates its aircrafts on a no-frills model that means there are no inflight entertainment systems, food available for some additional cost, no high cost magazines. Ordering food is available during the purchase of ticket online through which it estimates the amount of food to be taken in aircraft.
Average Stage Length:Indigo airlines stick to the routes which are of average stage length of 1 hour 30 minutes. This eliminates the need of passengers requesting the food in the aircraft which inturn helps the airline to reduce the equipment needed to heat the food etc.
6) Turnaround time and On-time
Indigo:
Indigo is the most successful airline compared to all airlines in India. The reason for its success is that it employed a good business model and used cost leadership strategy to differentiate its business model from other competitors. It concentrated on reducing its operating cost and input costs which …show more content…
The deal is that each aircraft will be returned back to the manufacturer after 6 years. Similar huge deals were done in 2011 where it ordered 180 A320 neo aircrafts and 250 A320 neo in 2014. By observation it is evident that Indigo is planning its fleet size 10 years well in advance. This planning not only reduces operational costs for airlines but also increase the bargaining power with the manufacturer.
2) Fleet Commonality:
The whole fleet of Indigo consists of Airbus 320-200 aircrafts. This fleet commonality helps Indigo to cut overhead costs. It can use the same staff from ground force to the pilots. This gives an advantage by saving the training and hiring costs.
2) Single Class:
Indigo fleet of A320-200 consists of single economy class. The aircraft consists of 180 seats. It won’t provide any luxury seats known as business class seats. As a result of this the same crew looks after the passengers and also same service to everyone.
3) Low Average Fleet …show more content…
So airlines should use efficient methods to reduce the effect of fuel prices. Indigo is one of the first Indian airline to use a Sharklet equipped A320. Sharklets improve the aircrafts aerodynamics and reduce 4% burning of fuel and emissions in longer sectors (). Indigo placed an order of 150 A320 neo which have a fuel efficiency of 15 % than the previous model().It also uses fuel hedging method from 2007 after the permission from the government.
5) No-frills Model:
Indigo operates its aircrafts on a no-frills model that means there are no inflight entertainment systems, food available for some additional cost, no high cost magazines. Ordering food is available during the purchase of ticket online through which it estimates the amount of food to be taken in aircraft.
Average Stage Length:Indigo airlines stick to the routes which are of average stage length of 1 hour 30 minutes. This eliminates the need of passengers requesting the food in the aircraft which inturn helps the airline to reduce the equipment needed to heat the food etc.
6) Turnaround time and On-time