Monday, October 26, 2015

How Flyers Help Run India's Most Profitable Airline, IndiGo, Which IPO's This Week

IndiGo Airlines has 37 percent of the market share and is the only airline to consistently report profits over the last seven years despite India’s steep fuel taxes, expensive airport fees and ferocious competition.

IndiGo’s success mantra is its fanaticism towards keep operating costs low since its 2006 launch. Its maintenance costs are lower than its rivals.

Here is how passengers have been cleverly drawn into helping the carrier stay keep its on-time promise:

Flyers cannot enroll for a frequent flyer program on IndiGo – the airline does not run any. The airline does not offer any other kinds of frills or freebies either.

Flyers have to pay for food but there are no piping hot or heavy meals to buy. Instead, buyers can purchase sandwiches and cups of noodles that cook instantly.

Flyers have to arrive at boarding gates well before departure time to ensure that IndiGo’s aircraft turn around quickly. Customers who do not arrive at check-in counters an hour before departure are disallowed from boarding. There are no empty seats either and, though it will not admit, the airline reportedly overbooks.

Passengers are frequently reminded on the PA system to clean up after themselves and bin all the waste in the sacks regularly ferried around by flight attendants.

Flyers pay excess baggage charges for every kilogram. The staff shows no leniency for even one extra kilogram.
26/10/15 Saritha Rai/Forbes
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