IndiGo

IndiGo,[1] is a private, low-cost airline based in Gurgaon, Haryana, India.[2] The airline started operations in August 2006 and by August 2012 was the largest low cost carrier in India[1] and was India's largest carrier by market share.[3][4] As of March 2012 it is the only airline in India making profits

History

An IndiGo A320 taxiing to the gate after landing at the Bengaluru International Airport

[edit]In

the beginning

IndiGo was set up in early 2006 by Rakesh Gangwal and Rahul Bhatia, of InterGlobe Enterprises. InterGlobe holds 51.12% stake in IndiGo and 48% is held by Caelum Investments, a Virginia, US based firm, run by Rakesh Gangwal.[7] IndiGo placed a firm order of 100 Airbus A320-200 aircraft during June 2005 in plans to commence operations in mid 2006.[8] IndiGo took delivery of its first Airbus A320-200 aircraft on 28 July 2006, nearly one year after placing the order, and commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati. By the end of 2006, the airline had six aircraft. Nine more aircraft were acquired in 2007 taking the total to 15. By December 2010, IndiGo replaced the state run flag carrier Air India as the top third airline in India. It already had a 17.3% of the market share, behind Kingfisher Airlines and Jet Airways.[9] [edit]Going

international and rise to India's largest airline

In January 2011 IndiGo received a license to operate international flights after completing five years of operations.[10] IndiGo's first international service was launched between New Delhi and Dubai on 1 September 2011.[11] Over the following weeks, the international services were expanded to serve Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai.[12] Indigo had applied to operate to Dammam and Doha but due to restrictions, applied by the civil aviation ministry to protect Air India, permission was not given until 15 February 2012.[13] By early 2012, IndiGo had taken the delivery of its 50th aircraft in less than 6 years. IndiGo is known to have placed the largest order in commercial aviation history during 2011 at that time, when Airbus won the US$ 15 billion deal for 180 aircraft. This deal pushed up the percentage of Airbus aircraft in India to 73%.[14] In February 2012, IndiGo was expanding rapidly and was making solid profits, the only airline in India to do so. It had replaced Kingfisher as the second largest airline in India in terms of market share. IndiGo's strong adherence to the low cost model, buying only one type of aircraft and keeping operational costs as low as possible along with heavy emphasis on punctuality are said to be some of the reasons for its success even when the airline industry in India is currently going through a bad patch. IndiGo focuses on adding a new plane every six weeks and sometimes even faster.

However, this rapid expansion had led to a scathing report by the DGCA in December 2011, which highlighted problems in the airline which could impact safety due to rapid expansion.[15] On 17 August 2012, IndiGo became the first low cost carrier in India to become the largest airline in India in terms of market share (27%),[4] dethroning Jet Airways, which had held the position for many years. It has achieved that feat just 6 years after it began operations.[4] [edit]Destinations Main article: IndiGo destinations IndiGo operates to 33 destinations in India and abroad with 373 flights each day. Unlike most low cost carriers, IndiGo uses a hub and spoke model used by full service airlines where the airline flights to different destinations are routed through its hub.[16] [edit]Fleet In order to reduce operational overhead, IndiGo operates only the Airbus A320 family of aircraft in its fleet. It generally purchases new aircraft. As of December 2012, IndiGo operates 60 such aircraft and the average fleet age is 2.3 years.[17]
IndiGo Fleet[18] Passen Orde Note gers rs s (Economy
)

Aircraft

In Servic e

Airbus A320-200 Airbus A320neo family Total

62

68 150[1
9]

180

180

62

208

The interior of an IndiGo A320

IndiGo placed an order for 100 Airbus A320 family aircraft during the 2005 Paris Air Show. The total order was worth US$6 billion, one of the highest during the show.[20][21] The carrier aimed to have a fleet size of 40 aircraft by 2010, and induct all the 100 aircraft it had ordered by 20152016.[22] The

Indian Government has approved the airline's aircraft import plan "in principle". Indigo took delivery of its 14 Airbus A320 aircraft in 2011 and is in plans to induct 18 more in 2012. IndiGo signed a Memorandum of Understanding for an additional 180 Airbus A320 aircraft including 150 with the New Engine Option (NEO) on 11 January 2011. This is one of the largest orders of its kind in commercial aviation history. IndiGo is also one of the launch customers of the brand new Airbus A320neo family. The cost of the order is expected to have exceeded US$ 15 billion.[23][24] These aircraft will be delivered between 2016 and 2025.[25] In February 2012, IndiGo took the delivery of its 50th aircraft. Indigo is expected to take the delivery of 45 more Airbus A320-200 until 2015. [26] According to the Airbus order book IndiGo has converted 20 A320 orders to A321. It is however unclear if these orders are for the CEO or NEO version of the plane. [edit]Onboard

services

Nirula's kathi roll meal onboard IndiGo airline

Being a low-cost carrier, none of IndiGo's flights have Business class or First class sections. It offers only Economy class seating. To keep fares low, IndiGo offers a basic service no in-flight entertainment or complimentary meals although it does have a buy-on board in-flight meal programme.[27] IndiGo offers a premium service called IndiGo Plus, where the passengers, at a higher fare, can avail additional benefits like a pre-assigned seat and a complementary meal on board.[28] It also offers a service called IndiGo Corporate Program for corporate travellers