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Indigo Airline Casestudy

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Indigo Airline Casestudy
IndiGo
Come September, budget carrier IndiGo will press ahead with its boldest move since... inception. India's fastest-growing airline will launch its first international flight from Delhi to Dubai on September 1, followed by flights to Bangkok and Singapore from Delhi and Mumbai.

In many ways, it will be a pivotal moment for the five-yearold carrier. IndiGo has built its success on a signature cocktail of clipped costs, a squeaky-clean reputation for punctuality and hassle-free services, rapid expansion into new routes and of course, its bread-and-butter affordable fares.

Now, as it prepares to start international flights, some profound shifts are taking place in not only the airline's core operations but also the Indian aviation industry.

IndiGo has never been squeamish about expansion, but the fervour with which it has burst into the international skies is certain to unnerve even bigger rivals.

With typical bravura, the carrier announced a promotional offer of `9,999 for the foreign routes though the flight schedules are still subject to regulatory approval. In January, again with an eye on expansion, IndiGo said it will buy 180 planes from Airbus for an estimated $15.6 billion - the order was finalised on Friday at the Paris Air Show - in the largest jet order in commercial aviation history.

Now, IndiGo is mounting efforts to replicate its tried and trusted domestic model in the international routes, according to three people familiar with the airline's operations. Even so, analysts are questioning whether the airline can sustain its singular operating style in a fiercely competitive new market.

Or for that matter, whether its formidable reputation in the domestic market will be a springboard for success in the international market as well.

New Game, New Rules

"Flying international is a completely different ball game," says Mark D Martin, an aviation industry veteran, who previously headed low-cost carrier SpiceJet's strategy.

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