Europe Asia Business School Strategic Management
Your Tutor's Name: Prof. Bella Butler
Full name of the student: Deepak Namram Full name of the student: Gargi Kumari Full name of the student: Sujata Sah
Student number: 09104 Student number: 09105 Student number: 09121
Due Date: 10th Sep 2009 Date submitted: 10th Sep 2009 We declare the attached assignment is our own work and has not previously been submitted, in whole or in part, for assessment in any other unit. We have retained a copy of this assignment for my own records. Signed Signed Signed ___________________________________________________ ___________________________________________________
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In their urge to survive, they were compelled to increase prices, add free refreshments and beverages on-board, etc. Some players sought refuge in mergers, whereas some survived by modifying their business model. However, amidst this aviation turmoil, IndiGo continued to fly high. In its endeavour to consistently maintain low costs, IndiGo resorted to measures like outsourcing and having a homogeneous fleet. These efforts helped IndiGo to offer its passengers low air fares. IndiGo is the latest entrant as a low cost carrier in the aviation industry of India. It started its operations on August 4, 2006. InterGlobe Enterprises, a renowned travel corporation, is the owner of IndiGo. The IndiGo team uses all of these resources to design processes and rules that are safe and simple, that make sense, and that cut waste and hassles, which in turn ensures a uniquely smooth, seamless, precise, gimmick-free customer experience at fares that are always affordable. It was awarded the title of ‘Best Domestic Low Cost Carrier’ in India for 2008. The airline currently operates 120 daily flights with a fleet of nineteen brand new Airbus A320 aircraft and flies to 17 destinations. IndiGo plans to serve approximately 30 Indian cities by 2010, with a fleet of approximately 40 A320s.1 Below are the key factors of the business model of IndiGo airlines: • • • A single passenger class. Single type of airplane to reduce training and service cost. No frills such as free food/drinks, lounges.