The aviation industry in India is the fastest-growing sector in the world as per the International Air Transport Association (IATA). The manufacturing hub of Indian aviation is located in Bangalore and the UDAN scheme of the government drives the growing civil aviation and aviation infrastructure in the country.
Indian civil aviation industry is broadly classified into scheduled air transport which includes domestic and international airlines, non-scheduled air transport which includes charter operators and air taxi operators and air cargo transport which includes air transportation of cargo and mail. As was the case with all commercial activity, the Indian civil aviation industry was severely affected due to the covid-19 pandemic. However, not only has the industry recovered but witnessed a robust growth of 104.24% in one year. This is evident from the figures of the air traffic movement which stood at 613,566 in the first quarter of FY 2022-2023 as opposed to 300,405 in the first quarter of FY 2021-2022.
Currently ranked at number 7 in the global civil aviation market, Indian civil aviation is expected to become the third largest within the next ten years. It is already the third-largest domestic aviation market in the world and is expected to become the third-largest air passenger market by 2024, overtaking the United Kingdom.
The civil aviation industry of India can be traced back to 17th February 1911 when the first commercial flight took to the skies from Allahabad to Naini – a short distance of only 6 miles covered in approximately 15 minutes. This was the world’s first official airmail service as the Humber biplane carried 6500 pieces of mail piloted by Henri Pequet. The first commercial airline was Handley Page Indo-Burmese Transport flown on 15th October 1932 by J.R.D. Tata from Karachi to Juhu Airport. This airline later became Air India.
By 1953, there were eight domestic airlines that were operating independently within the country. They were Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways, Air India, and Air Services of India. In March of that year, the Indian Parliament passed the Air Corporations Act resulting in the nationalization of the merger of all eight airlines into two government-owned entities – Indian Airlines focusing on domestic routes, and Air India International focusing on international services.
History of Aviation in India
In 1972, The International Airports Authority of India (IAAI) was established followed by the National Airports Authority in 1986 and The Bureau of Civil Aviation in 1987. The Indian government de-regularized the civil aviation sector in 1991 leading to the introduction of the first national-level private airline – East-West Airlines, followed by Jet Airways which began operations in April 1992. By 1994 the Air Corporation Act was repealed allowing private airlines to operate scheduled services. This led several players like Air Sahara, Modiluft, Damania Airways, and NEPC Airlines to commence operations within the Indian skies.
Growth of Civil Aviation Industry & Its Challenges
Between 2004 and 2005 many low-cost airline carriers entered the Indian market. Prominent operators among them were Air Deccan, Indigo, Air Sahara, Kingfisher Airlines, SpiceJet, GoAir, and Paramount Airways. However, soon the industry was riddled with problems as it struggled with rising fuel and operations costs and economic slowdown. There was a flurry of mergers, acquisitions, and discontinuation of services within the market players. Paramount Airways closed operations in 2010 while Air Sahara was bought by Jet Airways and Air Deccan was acquired by Kingfisher Airlines in 2007. Kingfisher Airlines closed operations in 2012. A joint venture between Air Asia and Tata Sons led to the launch of AirAsia India in 2014 – another low-cost carrier. Another carrier, Vistara was also launched due to a joint venture between Tata Sons and Singapore Airlines. By 2013 and 2014 only two low-cost carriers, GoAir and Indigo were generating profits through their operations.
Current Leaders In The Civil Aviation Market
With the number of airline operators within the Indian civil aviation sector, Indigo and Jet Airways was operating neck to neck in the year 2018. However, the latter was riddled with financial difficulties that led to operations being suspended by April 2019. This left the field open for Indigo with little or no competition from other players. By the year 2022, Indigo was dominating the Indian airline space with a market share of almost 55%.
What has resulted in Indigo’s market domination is its no-frills approach and low-cost domestic flying. During the fiscal year 2022, Indigo carried more than 46.6 million passengers according to the Directorate-General of Civil Aviation. The airline has registered the least number of customer complaints and has ranked at number 4 among the country’s most punctual airlines registering almost 84% of on-time arrivals. Indigo rates high on domestic popularity which is indicative of soaring growth in the future.
Conclusion
The Indian Civil Aviation Industry has received strong backing from the government and is increasingly emerging as a fast-growing sector. The sector has established itself as a credible alternative to road or rail journeys. The growth trajectory of the industry currently indicates that by the year 2034, it may well become one of the largest aviation markets in the world.
FAQs
Who are the major players in the Indian Civil Aviation Industry?
The major players in the Indian Civil Aviation Industry include:
IndiGo
SpiceJet
Air India
Vistara
GoAir
AirAsia India
Air India Express
What is the contribution of the Indian Civil Aviation Industry to the country’s GDP?
According to a report by the Ministry of Civil Aviation, the Indian Civil Aviation Industry contributed about 0.5% to the country’s GDP in the financial year 2019-20. The industry provides direct and indirect employment to millions of people and has a significant impact on the economy.
What are the key challenges faced by the Indian Civil Aviation Industry?
The Indian Civil Aviation Industry faces several challenges, some of the key ones are:
High operating costs: The industry is faced with high operating costs, which include fuel prices, airport charges, and taxes.
Infrastructure constraints
Competition: The industry is highly competitive, with several players vying for market share. This has resulted in price wars and cost-cutting measures that impact the quality of services offered.
Day by day, something or other happens in cases related to fraudster or swindling. In India, such issues go viral and are often linked to businessmen duping money and getting away easily.
While there can be numerous reasons as to why someone can cheat or will cheat puts us to question our thoughts on the system. Things like these can be distressing to see when we don’t have the answers for ourselves.
As we are all aware that the breaking news of Ajay Singh getting arrested by the police has left many viewers anxious. The curiosity is only rising as to why and what happened that led to his incarceration.
Recently, Ajay Singh, an Indian entrepreneur and the Managing Director of SpiceJet airline, has been booked for defrauding a businessman of Rs 10 lakh worth of shares.
Born on the 29th of December 1965, Ajay Singh was brought up in Delhi’s Maharani Bagh area. His father belonged to Alwar, and his mother was from Meerut.
He did his graduation in engineering from the Indian Institute of Technology, Delhi, and holds an MBA degree from Cornell University in the United States. Besides this, he is also a law student and holds a degree from the University of Delhi.
Ajay Singh is married to Shiwani Singh. The couple has a daughter named Avani Singh, who is an alumnus of Standford University.
Career and Foundation of Spicejet
Ajay Singh co-founded India’s second-largest airline SpiceJet in 2005. He started the airline with the object to make airlines affordable for every Indian. After about five years since the inception of SpiceJet, Ajay Singh exited the company.
When the company was on the brink of shutting down, Ajay Singh decided to take over SpiceJet again. Soon after his leadership, the airline started to grow making it one of the best-time performers among several other airline service providers.
Ajay Singh is known for his all-rounder personality, such as being a businessman, sports administrator, bureaucrat, and investor. He is currently the Chairman and Managing Director of SpiceJet.
Ajay Singh is fond of sports and games. Keeping in view his liking for sports, he is the President of the Boxing Federation of India, and Associate Vice President of the Indian Olympic Association. On 25 September 2016, Ajay was elected as the President of the British Film Institute (BFI).
He is also the first-ever Indian to Chair the Aviation, Travel and Tourism Governor’s meeting at the World Economic Forum, Davos in 2019.
Due to his sharp leadership skills, SpiceJet was responsible for the Boeing order of making 50 Bombardier Q400 planes. The order was approved by then US President Donald Trump.
Political Alliances of Ajay Singh
Many believe Ajay Singh to be the BJP’s right-hand man. He is the go-to person for every member of the party for any kind of political advertisement.
Ajay Singh is associated with politics as he managed the campaigning for the BJP during the 2004 and 2014 general elections. He is the man behind the famous slogan, “Abki Baar Modi Sarkar”, which translates to Now is the time for Modi Government.
Most of the opposition parties refer to him as “Chhota Ambani or Chhota Adani of Narendra Modi for being privileged under Modi’s political clout.”
Why Was Ajay Singh Arrested?
Amit Arora, a Gurugram businessman has filed a complaint against the Managing Director of SpiceJet, Ajay Singh for delivering a fake Depository Receipt (DIS) worth Rs 10,00,000 shares.
In his complaint, Amit Arora revealed that Ajay Singh had promised him shares worth Rs 10 lakhs of SpiceJet for the services Amit had provided him during the time when Ajay brought over the airline from the promoters.
He claims that when he approached Ajay, he handed him a depository slip, which was later found out to be invalid. Upon reaching him several times, Ajay Singh denied paying him the shares.
Since there was no option of getting the shares from Ajay, he pressed the charges against him. Additionally, he has claimed that Ajay has been cheating many others in the same manner. He got to know from a source that a person named Chetan Nanda and Priti Nanda had charged a criminal complaint against Ajay Singh and that they were duped of their shares in the same manner.
On 11 July 2022, Ajay Singh has been arrested by the Gurugram police under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant or banker, or agent), 415 (deception), 417 (cheating), 420 (cheating and dishonesty) of the Indian Penal Code.
To clarify the allegations against Ajay Singh, an official from SpiceJet has stated that these allegations are done to defame Ajay Singh and are inauthentic. The company is soon going to file a defamation suit against Amit Arora, who is the complainant.
The administrator from SpiceJet said,
“A frivolous, mischievous and completely bogus complaint has been filed by a liquor dealer Amit Arora with Gurugram police with an intention to hurt SpiceJet and Ajay Singh’s image.”
Conclusion
The case is under investigation. Some reports suggest that the high court has issued the case as a non-bailable warrant against Ajay Singh as he was unable to appear before the court due to covid isolation. Only time can tell what will happen next.
FAQs
Why was Ajay Singh arrested?
Ajay Singh, the chairman of SpiceJet was arrested for defrauding a Gurugram businessman for Rs 10 lakh worth of shares.
Who is the owner of SpiceJet?
Ajay Singh is the owner, chairman and managing Director of SpiceJet.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byAir India.
Air India is the country’s best flying ambassador. Thanks to the 18,000 Air Indians who have continued the legacy of rising high, the drive to succeed and the passion that marked Air-inaugural India’s flight on October 15, 1932, is still indisputably present today.
In addition to domestic flights, Air India, covers southern and eastern Asia, Europe, the Middle East, Africa, the United States, Australia, and Canada. It was formed in 1932 (as Tata Airlines) and headquartered in Mumbai.
After the transaction was finalised by Air India Limited’s previous owner, the Government of India, it is now held by Talace Private Limited, a Special-Purpose Vehicle of Tata Sons.
Know more about Air India, its company history, business model, funding and investors, etc.
Bharat Ratna J.R.D. Tata founded an airline in 1932, realising his ambition and beginning the path that would become Air India. His love of flying, which led him to become the first Indian to acquire a commercial pilot’s licence, ignited the beginnings of Air India with the introduction of postal service from then-Bombay to Karachi via Ahmedabad. Since becoming nationalised in 1953, Air India has grown to become a significant domestic and international brand.
After joining Star Alliance, the largest global airline alliance, in July 2014, Air India’s international connectivity, which includes cities in Europe, The United States, The United Kingdom, Africa, the Gulf, Asia, and Australia, was improved. The airline flies to every remote county in our nation.
It has consistently stood by the country and its citizens in times of need and has been crucial in evacuation operations throughout crises like the Gulf War, the Coronavirus pandemic, and the most recent situation in Ukraine.
After re-joining the Tata Group on January 27, 2022, Air India is ready for takeoff, reinventing its objectives and strategy with a focus on overall excellence and customer-centric procedures.
Mr. Ratan Tata, Chairman Emeritus, Tata Sons, said on the occasion, “The Tata group welcomes Air India’s new customers and is thrilled to work together to make Air India the airline of choice in terms of passenger comfort and service.”
102 local and foreign destinations are served by the fleet of Airbus and Boeing aircraft operated by Air India. Along with many key cities around India, the airline has its hub at Indira Gandhi International Airport in New Delhi. With a market share of 18.6%, Air India is the biggest airline operating in India. Air India offers service to more than 60 overseas locations on four continents. On July 11, 2014, the airline joined Star Alliance as its 27th member.
Air India – Industry
Almost all facets of air travel and the operations that support it are included in the aviation business. This implies that it covers the whole airline sector as well as the manufacture of aircraft, research organisations, military aviation, and much more. The number of operational aircraft in the global aviation fleet at the start of 2022 was equal to that of 2017. However, at 25,500, it was about double the epidemic low mark set in the middle of 2020.
The business is now again set up for a decade of development after the Covid-19 outbreak lasted for two years. Domestic travel demand is anticipated to approach its pre-pandemic high in early 2023 on a worldwide scale. The projection then calls for continued growth through the rest of the decade at rates that even outpace improvements in GDP.
The ten years through 2032 are likely to be packed with problems that will put aviation’s resilience and profitability to the test, unlike the ten years between 2010 and 2019 when the sector had stable yearly gains in demand. The key issue for aviation going ahead is not its capacity for growth, but rather it’s capacity for profitable growth.
Air India – Founder
Air India is founded by Jehangir Ratanji Dadabhoy Tata on 29 July 1946.
J.R.D Tata
J.R.D Tata – Founder of Air India
Indian aviator, manufacturer, businessman, and head of the Tata Group, JRD Tata was a non-resident Indian, son of renowned industrialist Ratanji Dadabhoy Tata and his spouse Suzanne Brière. His mother was the first Indian lady to drive a vehicle, and he was the country’s first-ever certified pilot in 1929. He is most known for founding various businesses that are part of the Tata Group, including Voltas, Air India, Titan Industries, Tata Consultancy Services, and Tata Motors. He won two of India’s highest civilian honours—the Padma Vibhushan and the Bharat Ratna—in 1955 and 1992, as well as the French Legion of Honor in 1983.
Air India – Startup Story
In 1932, Air India launched Tata Airlines under the name of its founder, J. R. D. Tata. Between the Indian cities of Ahmadabad, Bombay, Bellary, and Madras and Karachi, Pakistan, the line transported mail and people. Within a short period, Tata Airlines’ itineraries featured stops in Trivandrum, Delhi, Colombo, Lahore, and other nearby Indian towns.
After World War II was over, the airline changed its name to Air-India Limited and went public. With the government owning a 49 per cent stake in the business, the airline expanded its reach outside of India in just two years, operating frequent flights to Cairo, Geneva, and London. The name of the company was once again changed to Air-India International Limited to reflect its expanded range of services.
For a variety of factors, India fared better in the airline business than the majority of other emerging nations. Air India mostly used native-born pilots, unlike other airlines which had to rely on foreign pilots to fly their aircraft. Similar to how many competent Indians were available to maintain India’s fleet and educate and manage its workforce, many other nations had to look outside of their borders for this type of knowledge. Along with its sibling carriers, Air-India profited from these benefits.
Early in the 1950s, Air India saw competition for its routes for the first time. Due to the affordable, war-surplus DC-3s that were becoming available, several new airlines were starting to emerge. There were no less than 21 established airlines, 11 of which had been granted permission to operate in Indian airspace.
Expanding its aviation business even further was one of Air India’s main objectives for the nineties. At the start of the decade, Air-India accounted for around 30% of the country’s air cargo business, with more than three dozen foreign airlines transporting the remaining 70%. To expand its ability to transport exports, the airline intended to hire more jet freighters. The International Airports Authority of India enhanced the ground handling and infrastructure at the entrances it manages, increasing its appeal to airlines and freight forwarders. With these modifications in place, cargo revenue for the 1990 fiscal year was the US $195 million, or 21% of Air India’s revenue.
Air India – Name, Logo, and Tagline
When J. R. D. Tata of Tata Sons, an Indian aviator and business mogul, launched Air India, it was originally known as Tata Air Services before changing its name to Tata Airlines. The airline used a six-seat Miles Merlin to launch its inaugural domestic route from Bombay to Trivandrum. It was given a new name in 1938, first as Tata Air Services and then as Tata Airlines.
Although its founder J. R. D. Tata would continue in that role as Chairman until 1977, the Government of India approved the Air Corporations Act in 1953 and bought a controlling share in the airline from Tata Sons.
As part of a reorganisation, the business was given the new name Air India International Limited and the domestic services were given to Indian Airlines.
The tagline of Air India says, “Air India… Truly Indian”
The airline’s previous logo included an orange “Konark Chakra” inside of a crimson flying swan. The soaring swan is a modified version of the iconic Air India emblem, “The Centaur,” while the “Konark Chakra” is evocative of the Indian logo.
Air India – Mission, and Vision
Air India’s mission statement says, “to deliver the highest quality of service around the world and be the epitome of Indian hospitality and to be India’s flag carrier and provide seamless travel within India and the world.”
Air India’s vision is, “to become India’s most efficient and preferred LCC on regional and international routes; constantly exceeding guest’ expectations in terms of quality, affordability, convenience and comfort.”
Air India – Products
Air India is one of India’s largest airlines, offering both international and local flights. Transport for people and goods was originally Air India’s two main services. But in 2012, the freight transport was shut down. It exclusively uses passenger transportation for operation. For the same, it makes use of Boeing and Airbus aircraft.
Some of its key products include premium lounges and in-flight entertainment. It also rents a number of its fleets to cut costs while maintaining quality. Air India’s extensive network of routes allows it to provide flights to the world’s most significant cities and commercial hubs. To encourage repeat business from its customers, it offers a high degree of safety.
According to the much research conducted and information obtained, Air India has solidified its position as India’s largest and most productive air carrier on all fronts. Millions of travellers regularly use their service, which is current and useful.
They aggressively position themselves in the market utilising a range of marketing strategies, such as social media campaigns and advertising, to tell customers about upcoming packages and other things. Customers consider their affordable costs to be a competitive advantage and a selling point. Overall, they have reached new heights while maintaining their innovativeness thanks to their marketing and sales strategies.
Some of the elements that determine the pricing include the path used by air traffic, the distance travelled, and the number of stops made along the trip. Given how fiercely competitive the airline industry is, competitive pricing makes sense. Within a flight, there are simultaneously two different pricing ranges:
Economy class
Business-class
Middle-class families may easily afford flight tickets on Air India. Business-class passengers are the main target of premium pricing since they are more likely to pay for and use premium services.
Air India – Marketing Campaigns
Through various media, including print, radio, television, and internet platforms, marketing efforts spread the word about items. It connects with the client by conveying a relevant message in addition to promoting the goods. The greatest and safest travel experience is promised by Air India campaigns.
A dig at Indigo – After a video showed one of their personnel fighting a passenger, Air India posted two advertisements on Twitter in a covert thread towards IndiGo Airlines. Air India poked fun at IndiGo after the assault incident by promising “unbeatable service” and using the letter “beat” in blue, IndiGo’s signature colour. The second one has the slogan, “We raise our hands ONLY to offer namaste,” and features Air India’s mascot, “Maharaja,” in his signature pose. On Twitter, people criticised IndiGo over the event and called for a boycott of the airline.
Mascot – The Air India Maharaja, arguably the country’s most known mascot, is typically seen standing with his hands in a polite namaste or bowing with his palm placed over his heart to greet visitors. But the mascot has since undergone several additional changes. Let’s examine a few of them.
War Ads – Air India and IndiGo are in war advertising. To entice customers, Air India is boosting up its advertising effort. Right behind IndiGo’s check-in desks, Air India posted an advertisement on a wall panel that said, “Next time fly with Air India and experience the difference.” Although no competitors are mentioned, the strategic positioning speaks for itself. Even IndiGo made no concessions. It responded to Air India with a commercial.
However, the national carrier has never engaged in such aggressive marketing. With loud advertising and promotional discounts, Air India is attempting to get consumer attention.
Air India – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
AirAsia India
AirAsia India provides scheduled air passenger transportation, air cargo transportation, and charter flight services.
The COVID-19 outbreak and rising fuel prices, according to claims in the media, are expected to lead India’s airlines to suffer their largest-ever loss of almost 20,000 crore rupees this fiscal year. Since its merger with Indian Airlines in 2007–2008, the airline has never turned a profit. In actuality, it disclosed a 7,017 crore rupee loss for FY21. The Tatas want to increase on-time performance and in-flight amenities now that they are back in the Air India cockpit. They must also encourage a corporate culture among the airline’s staff. Problems like outdated aircraft and subpar cabin goods must also be addressed.
The fleet’s update and maintenance come next. Air India has 141 aircraft in its fleet, a mix of narrow and wide-body Airbus and Boeing models, but has committed to giving Tatas just 118 of them in flyable condition. The 787 fleet of Air India’s airline is likewise severely short on components and engines. Tata group discovered that at any one moment, at least five 787s were sitting idle owing to a lack of engines. On the Boeing 777 fleet, which serves as the backbone of Air India’s successful US operations, at least two aircraft have been determined to be unfit for flight, and the others require extensive refurbishment.
How well the Tata Group will organise its aviation operations is an equally significant task.
Air India – Future Plans
“In terms of fleet, we know we have work to do,” Natarajan Chandrasekaran, chairman of the Tata Group, told. “We will address it with utmost urgency. We’ll upgrade our fleet, we’ll bring modernity in our fleet, we’ll bring a new fleet.”
In the upcoming months, Mr Chandrasekaran informed employees that Air India will swiftly boost the number of its narrow-body and wide-body aircraft. The average fleet age of Air India is more than ten years.
As per the company’s site, its fleet presently consists of 153 aircraft. This comprises 49 wide-body aircraft produced by Boeing and Airbus, including planes from the most popular 320 and 737 families. This is a challenging combination since each kind of aircraft demands a different set of pilot and crew skill sets.
Even though reductions are typical in such huge agreements, a sale for 50 brand-new 787-9 planes may be worth $14.6 billion at sticker pricing. The oldest models of the fuel-efficient workhorse are flown by Air India, one of the Boeing Dreamliner’s earliest purchasers worldwide, albeit some of them are still grounded owing to a lack of components.
FAQs
When was Air India founded?
Air India was founded in 1932 (as Tata Airlines) and headquartered in Mumbai.
Who is the founder of Air India?
Air India was founded by Jehangir Ratanji Dadabhoy Tata in 1946 in New Delhi.
Is Air India and AirAsia India same?
Air India acquired AirAsia India on Jun 14, 2022.
Who are the top competitors of Air India?
Top competitors in the competitive list of Air India are:-
Indigo
Jet Airways
Go Air
Air Asia
Etihad
Oman Air
Thai Airways
Singapore Airlines
Emirates
Jet Airways
Spicejet
Who is the owner of Air India?
Air India is owned by Tata Group.
Who is the CEO of Air India?
Campbell Wilson is the CEO of Air India since 12 May 2022.
IndiGo the largest domestic airline and the most pocket-friendly airline of India is the second-largest preferred airline in Asia.
As of August 2020, it will have a 59.24 percent domestic market share, making it India’s largest airline by passengers carried and fleet size. For the 2018–19 financial year, it was the largest low-cost carrier in Asia in terms of jet fleet size and number of passengers carried. A total of 87 destinations are served by the airline’s 1,500 flights per day.
India’s IndiGo has its headquarters in Gurugram. International Airlines’ chief executive officer is currently Ronojoy Dutta.
Rakesh Gangwal and Rahul Bhatia- Founders of Indigo Airlines
2006
Founded in 2006 by Rakesh Gangwal, an NRI, and Rahul Bhatia, the head of InterGlobe Enterprises the stakes were split with InterGlobe having a share of 51% and the rest 49% shares belonging to Gangwal. IndiGo submitted a firm request for 100 Airbus A320-200 airplanes in June 2005 with plans to start tasks in mid-2006.
IndiGo took conveyance of its first Airbus airplane on 28 July 2006, from New Delhi to Imphal via Guwahati after one year in the wake of putting in the request.
2007
By the end of 2006, IndiGo had 6 airplanes and by the end of 2007 9 more airplanes were added increasing the total count to 15.
2010
Before the finish of 2010, IndiGo previously had 17.3% of the portion of the overall aviation industry, supplanting the state-run airline Air India as the third aircraft in India, behind Kingfisher Airlines and Jet Airways.
2011
In 2011, IndiGo submitted a request for 180 Airbus A320 airplanes in an arrangement worth US$15 billion. In January 2011, in the wake of finishing five years of tasks, the carrier got authorization to dispatch worldwide flights.
The first international service was between New Delhi and Dubai followed by flight services from New Delhi and Mumbai to Bangkok, Singapore, Muscat, and Kathmandu.
2012
August 2012 marked as a turning point for IndiGo, when it surpassed Jet Airways in terms of market shares(a whopping 27%) and became the largest airline in India IndiGo works over 647 day-by-day trips to 39 destinations, 34 in India and 5 global.
2017
In 2017, IndiGo turned into the primary Indian transporter to work 1000 flights per day and, with the conveyance of the 31st Airbus A320neo airplane, an armada of 150 airplanes.
IndiGo additionally took conveyance of its first ATR 72 600 airplanes in December.
2018
In 2018, IndiGo kept on extending its worldwide course organization to 15 objections, adding everyday direct trips to Hong Kong, Doha, Phuket, and Istanbul.
IndiGo won the ‘Best Low-Cost Airline in Central Asia & India’ award for nine consecutive years till 2018.
IndiGo abides by three values: punctuality, pocket-friendly airfare, and quality experience.
The current scenario of IndiGo Airlines
Indigo Airline Logo
Adhering to their original idea of being a pocket-friendly airline (LLC: Low-cost carrier) IndiGo offers just Economy Class seating and doesn’t give on any of its trips in-flight entertainment or free dinners (however it has a purchase on-board in-flight supper program).
Premium administrations, with extra advantages like pre-relegated seats and meals ready, are offered at a higher rate.
COVID Impact on Airline Industry
The global pandemic has hit the airline industry across the world at an alarming rate. IndiGo has suffered a severe impact due to the lockdown scenario. India has suspended domestic and global flight activities somewhat recently in March to control the Covid spread in the country.
The domestic flight administrations continued on May 2020 in a restricted way. Aviation workers still are permitted to work with only a 45% capacity as of May 2021.
The income from activities plunged 91.9% year-on-year to ₹766.7 crores during the June period. Between April and December 2020, IndiGo announced overall deficits of Rs 4,659 crore, while incomes shrank 67.5 percent year-on-year.
Despite all these complications, the fact that IndiGo has made a swift recovery is noteworthy. It has brought the aviation industry to 80% of its pre-pandemic stage. IndiGo took 44 planes from Airbus SE in 2020 – the vast majority of any client and fixing Delta Air Lines Inc and China Southern Airlines Co Ltd – as it supplanted more seasoned planes with more eco-friendly fresher models. It is additionally outfitting to grow its armada further from 2023.
With a 52% domestic share of the market in 2020 versus 47% in 2019 and benefit insight following a loss last financial year that is in 2019, IndiGo is extending its range to more modest Indian urban communities like Ranchi, Patna, and Gorakhpur.
By the end of 2021, IndiGo is confident and optimistic that it will get back to normal and continue delivering top-notch service to its flyers. As of June 2021, IndiGo is the 7th largest airline in the world.
Ronojoy Dutta, CEO of IndiGo claims that IndiGo is out of crisis and says that he is optimistic about the future. Despite the multitude of issues the business is confronting, IndiGo’s year-over-year yields have gone up 8% and that is generally because individuals have more prominent trust in the IndiGo item and it appears in two regions and specifically in contract flights.
IndiGo is excelling on contract flights and simultaneously, its gathering work area is occupied. IndiGo’s main goal is to create extraordinary availability for India from little urban communities to enormous urban communities to nations around us.
Development is vital for IndiGo.
Accordingly, the main concern technique is to continue reducing airfare and continue developing quickly hence associating the whole country. Since IndiGo’s growth had been curbed for nearly 2 years due to the global pandemic, Ronjoy Dutta, the CEO claims that growth and expansion of the industry are very crucial at this point.
IndiGo has a four-corner strategy. From Delhi, we can go to a ton of places within six hours. From Mumbai, many spots in Africa; from Chennai bunch of spots in the southeast and Kolkata loads of spots in north Asia. IndiGo will cover every one of them.
The industry plans on reaching small towns, small cities, and other remote locations like Ladakh where flight connectivity is almost non-existent, and other international destinations where India has never flown to (yet).
Although for the next 2 years IndiGo expects a slight decline in growth due to the pandemic situation, the airline industry currently focuses on increasing productivity and providing a quality, top-notch experience to its flyers.
FAQs
When was Indigo airlines founded?
IndiGo was founded in 2006 as a private company by Rahul Bhatia and Rakesh Gangwal.
What type of aircrafts does IndiGo fly?
IndiGo operates the Airbus A320 CEO & NEO, the A321 NEO and the ATR 72-600 aircraft.
How many cities does IndiGo fly to?
IndiGo has a total destination count of 90 with 66 domestic destinations and 24 International.
Who is owner of IndiGo Airlines?
IndiGo Airlines is operated by Interglobe Aviation Limited. Rahul Bhatia and Rakesh Gangwal are the owners of Indigo Airlines. Rahul Bhatia of InterGlobe Enterprises higher stake in IndiGo than the co-founder Rakesh Gangwal.
Abinaya Arangarajan
