Tuesday, July 16, 2019

On Time was a wonderful thing. IndiGo’s famed punctuality mantra has gone for a toss since last July

As the feud between the promoters of IndiGo became public, the airline’s CEO wrote to the employees to continue focusing on on-time, courteous and hassle-free experience. Since inception, the airline has touted its on-time performance as one of the pillars of its marketing and operational strategy. So much so that in 2009, the airline came up with a TVC focused on being “on time”. The TVC, in which the airline tried to portray that it runs like a well-oiled machine, got plenty of traction. “On-time is a wonderful thing” was the central message of that commercial.
Well, things have changed since then. IndiGo is no longer the airline it was. It is a massive airline now, India’s largest, with a large number of planes, departures and destinations. It has cornered nearly 59 percent of India’s airline industry’s market share.
All this has been possible thanks to a break-neck expansion strategy as it inducted capacity and launches new stations across the country. So how has its famous on-time performance (OTP) fared amid the raft of changes?
Well, OTP hasn’t been the same since last July.
The data released by aviation regulator Directorate General of Civil Aviation  (DGCA) shows that IndiGo last led the charts in July 2018. IndiGo’s OTP has been only better than Air India in three of the last twelve months. Data for July is not yet released. Since AirAsia India data was aggregated and released post-March and Jet Airways is no more in operations, the data for these two has been left out in the analysis.
While India has over 90 operational airports, the DGCA releases the data measured at four private airports – Mumbai, Delhi, Bengaluru and Hyderabad — to arrive at an average before releasing it to the public. The flip side of the data is that flights which neither originate nor terminate at any of these four airports are not measured and since the data is based on departure, the arrival OTP is not published.
Based on presence at these four airports, airlines see a huge variance in the number of flights which are tracked but gets balanced considering the scale of operations of each airline and the percentage of flights which touch the four metros.
As operations grow, so do the complexities. OTP with 10 planes and 20 destinations is certainly easier to manage than IndiGo’s 236 planes, 73 destinations in total and roughly 40,000 departures a month.
16/07/19 Ameya Joshi/CNBC TV18
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