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Case Code: CLBS120
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| Case Length: 03 Pages |
| Period: - |
| Pub Date: 2012 |
| Teaching Note: Not Available |
| Subject :Business Strategy |
| Price:Rs.100 |
| Organization :- |
| Industry :Aviation |
| Countries : - |
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IndiGo - India's Most Profitable Low Cost Carrier |
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| As of 2011, the aviation industry in India was going through a turbulent period with several airlines reporting losses. Even in such a scenario, IndiGo managed to run profitably - the only airline to do so. The case looks at some of the strategies that helped IndiGo sustain, grow, and report profits in a tough environment.
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Issues: |
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- Sustaining oneself in a tough economic environment.
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- The effect of operational efficiencies on the profitability of a company.
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- The main reasons for the problems in the Indian aviation sector.
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| Introduction |
| The Indian aviation industry reported a loss of Rs.150 billion in 2010-11as against a loss of Rs 70.38 billion in 2009-10. Many of the major airlines in the country like Jet Airways, Kingfisher Airlines, and Air India incurred losses. Market analysts attributed these losses to the high price of aviation turbine fuel, high operating costs, rising airport fees, and severe competition. Many of the struggling airline companies sought government intervention to get through the turbulence.. |
Keywords |
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IndiGo, Indian aviation industry, Low Cost Carrier, Sale and lease back strategy, Airbus, single passenger class"
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
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