Infosys Hr Practice
THE INDIGO AIR : FIXING THEIR PROBLEMS AT KOLKATA AIRPORT
Indigo Air is the one of the prominent low cost airlines operated from India. ➢ a single passenger class ➢ a single type of aero plane commonly the Airbus A320 or Boeing 737, reducing training and servicing costs. ➢ a simple fare scheme, such as charging one-way tickets half that of round-trips (typically fares increase as the plane fills up, which rewards early reservations) ➢ unreserved seating (encouraging passengers to board early and quickly) ➢ flying to cheaper, less congested secondary airports and flying early in the morning or late in the evening to avoid air traffic delays and take advantage of lower landing fees ➢ short flights and fast turnaround times (allowing maximum utilization of aircraft) ➢ simplified routes, emphasizing point-to-point transit instead of transfers at hubs (again enhancing aircraft utilization and eliminating disruption due to delayed passengers or luggage missing connecting flights) ➢ emphasis on direct sales of tickets, especially over the Internet (avoiding fees and commissions paid to travel agents and computer reservations systems) ➢ encouraged use and issuance of the electronic ticket or ticketless travel ➢ employees working in multiple roles, for instance flight attendants also cleaning the aircraft or working as gate agents (limiting personnel costs) ➢ "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink (which represent an additional profit source for the airline). ➢ Aggressive fuel hedging programs. ➢ "Unbundling" of ancillary charges (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower. Indian aviation witnessed a revolutionary strategic move in 2003 when Air Deccan pioneered the low cost or low frills model which focused on keeping
Indigo Air is the one of the prominent low cost airlines operated from India. ➢ a single passenger class ➢ a single type of aero plane commonly the Airbus A320 or Boeing 737, reducing training and servicing costs. ➢ a simple fare scheme, such as charging one-way tickets half that of round-trips (typically fares increase as the plane fills up, which rewards early reservations) ➢ unreserved seating (encouraging passengers to board early and quickly) ➢ flying to cheaper, less congested secondary airports and flying early in the morning or late in the evening to avoid air traffic delays and take advantage of lower landing fees ➢ short flights and fast turnaround times (allowing maximum utilization of aircraft) ➢ simplified routes, emphasizing point-to-point transit instead of transfers at hubs (again enhancing aircraft utilization and eliminating disruption due to delayed passengers or luggage missing connecting flights) ➢ emphasis on direct sales of tickets, especially over the Internet (avoiding fees and commissions paid to travel agents and computer reservations systems) ➢ encouraged use and issuance of the electronic ticket or ticketless travel ➢ employees working in multiple roles, for instance flight attendants also cleaning the aircraft or working as gate agents (limiting personnel costs) ➢ "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink (which represent an additional profit source for the airline). ➢ Aggressive fuel hedging programs. ➢ "Unbundling" of ancillary charges (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower. Indian aviation witnessed a revolutionary strategic move in 2003 when Air Deccan pioneered the low cost or low frills model which focused on keeping