What differentiates IndiGo from other Indian airlines
What differentiates IndiGo from other Indian airlines
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@B@R_0_0_D wrote:
haan yeah you are absolutely right 
teacher will open door but will not take in on hhis/her shoulders. we have to go on our legs.
What differentiates IndiGo from other Indian airlines
Varun Seth, CA
Monday’s FDI announcement by the Indian government allows foreign companies and overseas corporate bodies to own 100% stake in Indian carriers and regional airlines. The timing of this announcement is particularly interesting as it comes a mere fortnight after the Indian Prime Minister had visited Qatar and held bilateral talks on a range of issues. Qatar Airways (QA) has since long demanded higher air traffic rights in India (currently QA has c.24,300 seats compared with Emirates and Etihad’s c.50,000 and c.64,000 seats respectively).
It is also no secret that QA has eyed a stake in India’s IndiGo Airlines (IndiGo) since long and came real close to achieving that dream at the time of IndiGo’s IPO last year. However, the deal fell through as regulatory approvals could not be obtained in time. It is therefore, very likely that QA’s interest in India would have also been on the agenda during the recent bilateral talks and this latest announcement by the Indian government could be a step to clear one of the hurdles required to make QA’s dream possible. This is an issue to ponder about later though. What is worth discussing now is why foreign investors and airlines will line up to buy a stake in IndiGo? Why has IndiGo managed to stay in the green inspite of the entire industry losing a cumulative US$ 7bn every year? So what does IndiGo do differently from other Indian airlines -IndiGo’s whole fleet consists of A-320-232 aircrafts while Air India, Jet Airways and Spice Jet use 10, 9 and 3 different makes of aircraft respectively. This results in uniformity in operations at lower levels and lower hiring, training and upgradation costs. Also it’s average fleet age is less than 3 years. IndiGo maintains a lower fleet age as all its aircraft are leased for a period of 5-6 years. A younger fleet means less maintenance costs.
Route planning is IndiGo’s forte and the airline has used technology effectively to plan and expand its routes deftly. In 2012-13, IndiGo increased its capacity by over 39%, even while the total industry capacity fell by 4%. On top of that, IndiGo’s route planning helped it gain market share and also contain costs. To explain in simple terms, IndiGo has a fleet of 70 aircrafts, yet it flies to only 29 domestic and four international destinations. In contrast, SpiceJet has 56 planes but it flies to 45 domestic and 10 international destinations. Thus, IndiGo’s strategy is to provide more capacity on select routes, rather than spread itself thin over several. As each destination requires new investments (rentals, staff, ground-handling, equipment et cetera), this helps contain costs.
Indigo has Power by the Hour contract with International Aero Engines (IAE), which provides the engines, that put the onus of performance delivery on the manufacturer. IndiGo has a similar agreement with Airbus, as well as with the vendors for other critical components. These contracts probably come at a premium but it ensures that IndiGo’s aircrafts are not grounded for a long period for repairs and maintenance. It also ensures that IndiGo does not have to maintain a large inventory of spares. That is reflected in the fact that its technical dispatch reliability of 99.4 per cent is amongst the best in the world. The difference was also palpable in 2010 when Kingfisher Airlines had to ground its aircraft because of snags in the engine, but IndiGo which used the same engines did not suffer because of the vendor support contracts. Even it’s C-checks, which an aircraft has to go through regularly, are done in Sri Lanka, unlike its competitors who send their aircrafts to Dubai, Hong Kong, Singapore and Kuala Lumpur. The advantage is that you burn less fuel to reach Sir Lanka and, since all your planes go to one place, you get a better price. Having single aircraft type also helps here again.
The biggest cost for any airline is jet fuel; it can add up to 50 per cent of the operational cost and any savings here could make a large difference to operations. IndiGo goes through it with a toothcomb. For instance, when the aircraft lands and comes to a standstill, the airline goes into a detailed analysis of whether it should be on auxiliary power or should it invest in a ground power unit to save fuel costs. The question is whether you want to burn jet fuel for the auxiliary unit or burn diesel in the ground unit which is cheaper. Pilots are put through training on how to save fuel, which includes details of the time they should take to climb to 32,000 feet. The faster your ascent, the more fuel you consume and vice-versa.
IndiGo has avoided the lure of rapidly expanding into new cities and undertaking acquisitions. The company has single mindedly focused on delivering higher operational effectiveness in its existing routes before expanding to others. Similarly, it has avoided undertaking expensive acquisitions in Indian skies. This why the airline has practically no debt. However, that is not the case for other airlines – Air India, Jet Airways and Spice Jet all have huge debts which were taken to finance expansions. A massive debt of more than US$ 2bn was one reason for Jet’s 24% stake sale to Etihad. Even Kingfisher Airline’s financial woes stemmed from their debt of more than US$ 1bn and a result of expensive acquisitions such as Sahara Air.
The whole effort to prune costs and improve profitability doesn’t end here. It has ordered A-320 Neos which are 15 per cent more fuel-efficient and can make a substantial difference to fuel costs. It is also pushing ancillary revenues (on-flight sales and meals) to increase cash flows, though this might happen over the long haul.
Thus, in conclusion operations focussed on saving costs without affecting service standards and optimum operational discipline are the main reasons why IndiGo is the only Indian airline to record profits for each of the last 7 years. Earlier this year, QA’s CEO Akbar Al Baker had commented on QA’s interest in IndiGo, saying: “We like to partner with success stories, not failures.” IndiGo has definitely been the best success story to emerge from the Indian skies. With the Indian domestic market expected to be the third-largest aviation market by 2020 (India recorded 81m trips in 2015), IndiGo’s growth potential is tremendous and the company will command premium valuations when the foreign investors come calling.
@B@R_0_0_D wrote:
What differentiates IndiGo from other Indian airlines
Varun Seth, CA
Monday’s FDI announcement by the Indian government allows foreign companies and overseas corporate bodies to own 100% stake in Indian carriers and regional airlines. The timing of this announcement is particularly interesting as it comes a mere fortnight after the Indian Prime Minister had visited Qatar and held bilateral talks on a range of issues. Qatar Airways (QA) has since long demanded higher air traffic rights in India (currently QA has c.24,300 seats compared with Emirates and Etihad’s c.50,000 and c.64,000 seats respectively).
It is also no secret that QA has eyed a stake in India’s IndiGo Airlines (IndiGo) since long and came real close to achieving that dream at the time of IndiGo’s IPO last year. However, the deal fell through as regulatory approvals could not be obtained in time. It is therefore, very likely that QA’s interest in India would have also been on the agenda during the recent bilateral talks and this latest announcement by the Indian government could be a step to clear one of the hurdles required to make QA’s dream possible. This is an issue to ponder about later though. What is worth discussing now is why foreign investors and airlines will line up to buy a stake in IndiGo? Why has IndiGo managed to stay in the green inspite of the entire industry losing a cumulative US$ 7bn every year? So what does IndiGo do differently from other Indian airlines -
IndiGo’s whole fleet consists of A-320-232 aircrafts while Air India, Jet Airways and Spice Jet use 10, 9 and 3 different makes of aircraft respectively. This results in uniformity in operations at lower levels and lower hiring, training and upgradation costs. Also it’s average fleet age is less than 3 years. IndiGo maintains a lower fleet age as all its aircraft are leased for a period of 5-6 years. A younger fleet means less maintenance costs.
Route planning is IndiGo’s forte and the airline has used technology effectively to plan and expand its routes deftly. In 2012-13, IndiGo increased its capacity by over 39%, even while the total industry capacity fell by 4%. On top of that, IndiGo’s route planning helped it gain market share and also contain costs. To explain in simple terms, IndiGo has a fleet of 70 aircrafts, yet it flies to only 29 domestic and four international destinations. In contrast, SpiceJet has 56 planes but it flies to 45 domestic and 10 international destinations. Thus, IndiGo’s strategy is to provide more capacity on select routes, rather than spread itself thin over several. As each destination requires new investments (rentals, staff, ground-handling, equipment et cetera), this helps contain costs.
Indigo has Power by the Hour contract with International Aero Engines (IAE), which provides the engines, that put the onus of performance delivery on the manufacturer. IndiGo has a similar agreement with Airbus, as well as with the vendors for other critical components. These contracts probably come at a premium but it ensures that IndiGo’s aircrafts are not grounded for a long period for repairs and maintenance. It also ensures that IndiGo does not have to maintain a large inventory of spares. That is reflected in the fact that its technical dispatch reliability of 99.4 per cent is amongst the best in the world. The difference was also palpable in 2010 when Kingfisher Airlines had to ground its aircraft because of snags in the engine, but IndiGo which used the same engines did not suffer because of the vendor support contracts. Even it’s C-checks, which an aircraft has to go through regularly, are done in Sri Lanka, unlike its competitors who send their aircrafts to Dubai, Hong Kong, Singapore and Kuala Lumpur. The advantage is that you burn less fuel to reach Sir Lanka and, since all your planes go to one place, you get a better price. Having single aircraft type also helps here again.
The biggest cost for any airline is jet fuel; it can add up to 50 per cent of the operational cost and any savings here could make a large difference to operations. IndiGo goes through it with a toothcomb. For instance, when the aircraft lands and comes to a standstill, the airline goes into a detailed analysis of whether it should be on auxiliary power or should it invest in a ground power unit to save fuel costs. The question is whether you want to burn jet fuel for the auxiliary unit or burn diesel in the ground unit which is cheaper. Pilots are put through training on how to save fuel, which includes details of the time they should take to climb to 32,000 feet. The faster your ascent, the more fuel you consume and vice-versa.
IndiGo has avoided the lure of rapidly expanding into new cities and undertaking acquisitions. The company has single mindedly focused on delivering higher operational effectiveness in its existing routes before expanding to others. Similarly, it has avoided undertaking expensive acquisitions in Indian skies. This why the airline has practically no debt. However, that is not the case for other airlines – Air India, Jet Airways and Spice Jet all have huge debts which were taken to finance expansions. A massive debt of more than US$ 2bn was one reason for Jet’s 24% stake sale to Etihad. Even Kingfisher Airline’s financial woes stemmed from their debt of more than US$ 1bn and a result of expensive acquisitions such as Sahara Air.
The whole effort to prune costs and improve profitability doesn’t end here. It has ordered A-320 Neos which are 15 per cent more fuel-efficient and can make a substantial difference to fuel costs. It is also pushing ancillary revenues (on-flight sales and meals) to increase cash flows, though this might happen over the long haul.
Thus, in conclusion operations focussed on saving costs without affecting service standards and optimum operational discipline are the main reasons why IndiGo is the only Indian airline to record profits for each of the last 7 years. Earlier this year, QA’s CEO Akbar Al Baker had commented on QA’s interest in IndiGo, saying: “We like to partner with success stories, not failures.” IndiGo has definitely been the best success story to emerge from the Indian skies. With the Indian domestic market expected to be the third-largest aviation market by 2020 (India recorded 81m trips in 2015), IndiGo’s growth potential is tremendous and the company will command premium valuations when the foreign investors come calling.
Wonderful info Barood uncle… 
Psychology Books Every Businessperson Should Read
At the base of it, business success is about people—making the right connections, understanding motivation, guessing what others will do next, and accurately evaluating those you meet. Which is why knowing some basic psychology can be so valuable for professionals of all stripes.
How do you learn what you need to know about the vast and fascinating body of science that studies what goes on inside people’s heads? You read, of course.
One place to start is the fascinating blog of psychologist and author Susan Weinschenk, but recently she did those hoping to increase their psychological understanding one better, offering a list of her favorite psychology titles for the general reader. Here are a few to get you started.
1. Thinking, Fast and Slow by Daniel Kahneman
“If you want to understand how people think and how and why they react, then this is a must read,” writes Weinschenk. Another reason to pick it up? The author is a Nobel Prize winning economist.
2. Redirect* by Timothy Wilson*
“If you want to know how to make permanent and lasting change in your behavior, or the behavior of someone you know, then this is the book to read,” according to Weinschenk. “This book tells you what does and doesn’t work based on research.”
3. Drive by Daniel Pink
“What really motivates people? This book covers the research on human motivation in the last few years,” she says. Plus, “it’s well written and an easy read.”
4. The Invisible Gorilla by Christopher Chabris and Daniel Simons
“Chabris and Simons explain their research that shows how what we think we are seeing and experiencing is not really what’s out there,” Weinschenk writes of this pick.
5. Strangers to Ourselves: Discovering the Adaptive Unconscious by Timothy Wilson
“This is the book that actually got me started seriously on the topic of the unconscious,” she notes. “This one is a bit more academic and psychological, especially the first few chapters, but all in all, a great book with lots of interesting insights and strong research.”
6. Stumbling on Happiness by Dan Gilbert
“I don’t think it’s really about happiness, so I don’t totally understand the title. To me it’s mainly about memory of the past, and anticipation about the future, and the research on how accurate or inaccurate we are about both past and future. It’s full of fascinating research,” writes Weinschenk of this book.
7. The Power of Habit by Charles Duhigg
This one is all about “the science of habits—how we form them, change them, and why they are so powerful,” says Weinschenk.
8. The Art of Choosing by Sheena Iyengar
“This is a thick book and research oriented, but it’s the best book out there for a survey of decision making,” she says. “Why do people make certain decisions? Why do they choose one thing over another? What makes them take action?” This pick offers answers.
9. Made to Stick by Chip Heath and Dan Heath
“This is a little book that brings together research on what captures our attention, makes us remember, and makes us take action. It’
Good read!
Having traveled with Indigo many times over the last few years, i can attest to the fact that Indigo airlines is a very professional and no non-sense operator. Out of 30+ times i flew with Indigo over the last 2 years, only once the flight was delayed. Another factor i like about Indigo airlines is the maintenance of the flights. Interiors of most indigo flights is still top notch with clean seats and it is hard to spot any dirt or scratch anywhere.
The only area Indigo sucks is IT. Indigo’s website is horrible and the lesser said about the app the better. I was trying to book some tickets via their app today to utilize the Citi 1500 off offer. It took me 4 attempts to make a successful booking. At the and it was well worth it. Even without discounts, Delhi -Chennai flight was listed for 2,700 rupees. that’s even cheaper than Rajdhani train on the same route.
@cybertechie wrote:
Good read!
Having traveled with Indigo many times over the last few years, i can attest to the fact that Indigo airlines is a very professional and no non-sense operator. Out of 30+ times i flew with Indigo over the last 2 years, only once the flight was delayed. Another factor i like about Indigo airlines is the maintenance of the flights. Interiors of most indigo flights is still top notch with clean seats and it is hard to spot any dirt or scratch anywhere.
The only area Indigo sucks is IT. Indigo’s website is horrible and the lesser said about the app the better. I was trying to book some tickets via their app today to utilize the Citi 1500 off offer. It took me 4 attempts to make a successful booking. At the and it was well worth it. Even without discounts, Delhi -Chennai flight was listed for 2,700 rupees. that’s even cheaper than Rajdhani train on the same route.
for booking , site and cash back are better in ixigo.com, IMO
@B@R_0_0_D wrote:
for booking , site and cash back are better in ixigo.com, IMO
Citibank was offering 1500 cashback on 7500 rs transaction on Indigo airlines app. On top of it, there is no convenience charge for app based bookings. I booked 6 tickets with 6 different Citibank cards to utilize the offer fully
Indigo has identified the real reason most people in India travel by air – to reach on time. They do not claim flashy style or gourmet food. They would even make you help in clearing the garbage and stand in queue to get into the craft. But they 99% time reach on schedule or a few minutes before. As a frequent traveler, I have the option of traveling any airlines, but always have Indigo as the first option. Because, for me, and for most other Indian travelers, been on time is the first priority.
@panchabhut wrote:
Indigo has identified the real reason most people in India travel by air – to reach on time. They do not claim flashy style or gourmet food. They would even make you help in clearing the garbage and stand in queue to get into the craft. But they 99% time reach on schedule or a few minutes before. As a frequent traveler, I have the option of traveling any airlines, but always have Indigo as the first option. Because, for me, and for most other Indian travelers, been on time is the first priority.
I couldn’t have said it any better.
On time performance and safety should be the priority of airlines or for that matter any operator in transport sector. Indigo leads by example when it comes to on time performance. I just wish the likes of Air india would have followed the same path.
@cybertechie wrote:
@panchabhut wrote:
Indigo has identified the real reason most people in India travel by air – to reach on time. They do not claim flashy style or gourmet food. They would even make you help in clearing the garbage and stand in queue to get into the craft. But they 99% time reach on schedule or a few minutes before. As a frequent traveler, I have the option of traveling any airlines, but always have Indigo as the first option. Because, for me, and for most other Indian travelers, been on time is the first priority.
I couldn’t have said it any better.
On time performance and safety should be the priority of airlines or for that matter any operator in transport sector. Indigo leads by example when it comes to on time performance. I just wish the likes of Air india would have followed the same path.
I used to prefer GoAir over IndiGo because of better on-time performance (even for late evening/night flights), lesser fares and newer fleets. but my last 2 experiences with GoAir were bad. 
Punctual in their timings
Pillow Fight: Hotels vs. Online Travel Agencies
High-flying teen becomes UK’s youngest airline pilot
http://www.itv.com/news/2016-07-01/high-flying-...
Never seen such a attitude and hospitality, Jetairways service levels have gone down the drain, flight got technical error hence we all were deported back to arrival and received our new boarding pass, once again went through the complete security process and then this employee at gate snatched my earlier boarding pass and vanished without even having courtesy to tell why.
Shame on Jet Airways.
An old man, an air hostess, and a surprise
Sayantan Roy
“Excuse me, khane mein kya hai?” (“Excuse me, what are the meal options?”), asked the elderly gentleman seated with his wife just one row behind me. The question was directed to an airhostess of an Indigo flight en route to Pune from Kolkata (India) on a July 2016 evening. All the passengers who had a pre-booked meal, or wanted to purchase onboard, had been served with their choice of food and beverage, and the cabin crew were busy with cash consolidation and preparing to clean up the deck.
Unlike the passengers around, I was not really taken aback by the loud and out-of-protocol gesture, as I was already irritated by the couple’s high pitched conversations in Marathi and Hindi throughout the first hour of the flight. It seemed they were not used to flights. They had even interacted with their immediate neighbor, an old formally dressed man seating by the aisle seat, in such a high tone that I knew they hail from Satara, returning after spending some time with their newly born grandson at their son’s place at Gangtok (Sikkim). Their son had booked the journey tickets for them, the first leg of which was from Bagdogra to Kolkata, and here they were, in their second part of the trip.
“Can I see your boarding pass, Sir?”, asked the air hostess politely, hiding the element of surprise that they are well trained for. “Of course, here it is”, said the elderly gentleman in a Marathi accented Hindi and extended a card to her. “Sir, this is the pass for the Bagdogra-Kolkata sector, can I please have the pass for this sector?” To this the man seemed visibly unsettled, searching for the right card with continuous ramblings in Marathi. His wife joined the commotion, “Just see how heartless they are, we haven’t eaten anything since lunch.” The gentleman found the right card and handed it over to the pretty lady in uniform.
As I was finishing my drink over a gripping novel, I decided to pause it for a moment and concentrate on the unfolding drama happening live beside me.
“Sorry sir, you do not have a booked meal for this sector. You had one in the flight from Bagdogra only. However, if you wish, you can purchase any food or drinks”, concluded the patient airhostess with a heart-stealing smile.
“Yeh kaise ho sakta hai? Plane mein khana milna hai to? Pehla flight mein bhi diya tha?!” (“How come that’s possible? Planes serve meals, isn’t it? We were served food in the first flight!”), stated the gentleman with a clear body language of non-cooperation and don’t-pay-whatever-hell-comes-up attitude. Clearly, his idea of modern day aviation is that of what we used to have in 90’s with Indian Airlines having a monopoly over the skies.
The trained young lady, did what she could’ve done best. Excused herself for a minute, went to the lead cabin attendant, had a sub-sonic whisper with her, and handed over the boarding pass to her.
The leading lady came to the spot after few minutes, and was straight to the point, “Sir, what would you like to have?”
Seriously, none of the nearby passengers including me was expecting this.
“Dekha? Maine bola tha na?” (“See? I had told you no?!”), the man said with a smile, oblivious of the fact that he was going to receive a free meal. “What do you have in the meals?”
The actions which followed next were heart-warming. The leading lady served 2 sets of sandwiches and mixed fruit beverages along with a beautiful smile tagged with a wish, “Enjoy your meals, Sir!”. The couple happily gorged into the food over a high pitched conversation in Marathi. I returned to my novel.
Even though the sentences in the book were running in front of my eyes, my mind was absorbed in something else. I got reminded of a talk by Subroto Bagchi, co-founder of Mindtree Ltd, where he stressed on the “neo P/E ratio”. We have found that in quarterly results and share market lingo (price-equity). But his point was on the right mix of Process along with Empathy in building and running an organization. All problems of the world can’t be solved by following the right process, unless you have an empathy element to back it up. It becomes particularly important when one deals with the most important aspect of one’s job, people.
If our leading lady had adhered to the laid down process, she would have rightfully refused the old couple two food packets. That was what the business framework and people like me around expected out of her. But being a proper ‘Lead’, when she decided to exercise her acumen of Empathy, it suddenly made more business sense to all of us. I felt a vibe in my co-passengers, that some part in all of them wanted to see the old couple have a chirping dinner. Probably Indigo lost INR 500 (which is anyway peanuts compared to their daily transactions) as a result of this, but the value they earned for themselves surpassed that number by miles. It made two old people satisfied, created many appreciating passengers, and made me write this blog lauding them.
While Empathy alone is not recommended to go about regular business, rock-solid and meticulously designed processes alone also will not enable us to create organizations of the future. It is very important to have that healthy P/E ratio in our institutions that we build so that they become a joyous place to be associated with.
https://www.ted.com/talks/brian_little_who_are_...
What makes you, you? Psychologists like to talk about our traits, or defined characteristics that make us who we are. But Brian Little is more interested in moments when we transcend those traits — sometimes because our culture demands it of us, and sometimes because we demand it of ourselves. Join Little as he dissects the surprising differences between introverts and extroverts and explains why your personality may be more malleable than you think.