OPERATIONSINDIGO VS

KINGFISHERBY

Y. HEMANTH KUMAR

2T3 42

CRS

DEMAND FORECASTING

Airline Industry Forecast includes:

Passenger Forecasts  

Freight Forecasts 

Airlines Expect 31% Rise in Passenger Demand by 2017.

INDIGO

OPEARTIONS STRATEGY FOR FARE REDUCTION

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 does not provide complimentary meals in any of its flights, though it does have a buy-on board in-flight meal programme.

IndiGo operates to 33 destinations in India and abroad with 399 daily flights.

IndiGo uses a hub and spoke model used by full service airlines where the airline flights to different destinations are routed through its hub.

HOW DID INDIGO BECAME A SUCCESSFUL CARRIER???

Another difference between IndiGo and Kingfisher is in the former’s ability to strike savvy deals—especially for its aircraft.

“The 100 Airbus aircraft deal signed in 2005 was a game changer as they managed to get an exceptional price and gave them the strategic ability to leverage it significantly,” Kaul adds.

The deal was to buy 100 Airbus 320 aircraft and every aircraft would be returned after six years. The airline has already received 50 aircraft and the rest is to join the fleet till 2015.

However, the real upside in IndiGo’s deal was a clause that ensured that Airbus would be responsible for anything going wrong with aircraft parts in subsequent years.

ROUTE MAP SHOWING THE

DIFFERENT OPERATING AND

DESTINATION POINTS.

Customer Focus ie., on time journey at reasonable rates.

Aircraft Communications Addressing and Reporting System (ACARS).

Before every IndiGo flight departs an automatic message is triggered from the aircraft to its operations control centre - and immediately the same departure time gets recorded in the software.

OTHER BEAUTIES OF INDIGO

Less turn around time.

More time in air.

Air carrying cost Is less when compared to other airlines.

Never concentrated on luxuries like Kingfisher and its rivals.

Uses HUB AND SPOKE MODEL in its operations.

Advantages of Hub-and-spoke model

Consolidation of passengers (economies of density)

Decreased number of routes

Increase demand (frequent flights)

Consolidation of activities (personnel, maintenance, etc.)

Decrease costs

SOME STATISTICS

HOW INDIGO HAS ATTAINED THE HIGHEST PROFITABILITY ???

POWER OF CONCENTRATION It operates on routes which have high traffic. Indigo has a fleet

of 70 aircraft, yet it flies to only 29 domestic and four international destinations.

Thus, IndiGo’s strategy is to provide more capacity on select routes, rather than spread itself thinly over several.

As each destination requires new investments (rentals, staff, ground-handling, equipment et cetera), this helps contain costs.

Keeping planes airborne as much as possible

 Indigo understands that a plane generates revenue as long as it is in the air.

Indigo gets an aircraft ready for its next flight in 31 minutes compared to 35 minutes a few years ago.

This has helped the airline achieve its target of keeping the plane airborne for 12 hours a day, despite the fact that it has been getting new aircraft on a regular basis.

OTHER FACTORS

VENDOR MANAGEMENT AND MANAGING FUEL COSTS.

Special training is given to the pilots such that they can reduce the fuel costs accordingly.

MARKET SHARE

KINGFIHSER

FROM OPERATIONS

TOOH- PARESHAAN

SERVICES PROVIDED BY KINGFISHER AIRLINES

Personal valet at the airport to assist at every step of the way, from baggage handling to boarding

Exclusive lounges with private space accompanied with refreshments and music.

In-flight entertainment to take-off with Personalized video screens and headphones broadcasting 5 video channels of the trendy FUN TV and the exclusive Kingfisher Radio 10 channels of chartbusting music from across the globe.

WHAT MAKES KINGFIHSER DIFFERENT FROM OTHERS??

IN FLIGHT HUB

KINGFISHER XPRESS

KING CLUB

KINGFISHER LOUNGE

COST REDUCTIONACTIVITIES WERE NOT MADE

EFFECTIVELYWHICH RESULTED IN HIGH DEBT..

KINGFISHERFAILED TO OPEATE SUCCESSFULLY IN

INDIA, LOST ITS REPUTATION & FOUND CURTIANS IN ITS SEGMENT