Navin Agarwal’s Post

Merging Air India & Indigo (Clickbait) It’s a pretty click-baity headline. What I actually mean is  Merging Air India & Indigo Products! In the not-too-distant past, airline models fit into clearly defined “boxes” Full-service airlines were full-service airlines Low-cost airlines were low-cost airlines And so on…….. But in current times, the boxes are being torn down, especially when it comes to products; Low-cost airlines such as Indigo are embracing the opportunity for premium passengers & higher revenues with different (seat) products! Aircraft types (and stage length of flights) are also changing with the introduction of wide-body aircraft & LR narrow bodies being introduced! They are embracing frequent flyer programs and the bells and whistles that go with it! But at the moment, however Indigo is still value for “premium” money! Would you pay INR 18,500+ for Indigo stretch or INR 29,000+ on Air India business from Mumbai to Delhi? Depends, right – if Dad is paying 😉 But let's talk about a few years in the future. Would Air India & Indigo actually have differentiated products & pricing or we will find a CONVERGENCE (There's that a better word than merge)! #aviation #travel #india

Being a frequent traveller, I got to use all the major airlines of India, except the relatively newer Akasa. Earlier when we had Kingfisher, GoAir, Jet Airways, Air Asia among the major, and some minor ones like TruJet and Air Costa, there was a stiff competition in offering the best fares across the third party travel sites and the airliners’ respective apps. Eventually Kingfisher was grounded due to debts, Jet Airways was beleaguered, and GoAir is also out from the market. The existence of SpiceJet and Akasa these days is almost clueless. Currently the duopoly of good for nothing airlines IndiGo and Air India is going on. Vistara served for a decade as an only hope for a decent aircraft with polite and professional staff, and better ground and inflight services. It has actually filled the void created by Jet Airways by offering premium feel at not so high fares. Despite Tata’s takeover, Air India still remained the same as it was prior to this. Now the confirmed merger of Vistara with Air India will have severe repercussions in the aviation sector. If we hope that AI will elevate to Vistara’s standards, we are wrong as it will surely be the other way round. Visatara will be put down to AI’s standards or even below, similar to how Air Asia was wiped out. AI should have considered Air Asia and Vistara as different verticals under the Tata’s ownership. You are free to disagree, but looking at the whither scenario, my perception won’t change easily. #vistarashouldremainvistara #vistaraairlines

IndiGo’s Success: A Blueprint for Market Dominance in Indian Aviation A key factor in IndiGo’s success is its segmented revenue model, divided into four distinct booking categories. These include standard Economy Class, Premium Economy for higher-than-average fares, and a last-minute booking class, each tailored to meet specific passenger profiles and preferences. This segmentation allows IndiGo to maximize revenue by strategically adjusting fares based on booking timing and demand. IndiGo’s expert team meticulously manages per-passenger yield, ensuring profitability across these segments.IndiGo (InterGlobe Aviation Ltd) A strong competitive edge also lies in IndiGo’s frequent flights on high-demand routes, with hourly departures, offering unmatched convenience. The airline’s substantial fleet order of 500 A320 aircraft enabled significant discounts, lowering acquisition costs and enhancing economies of scale. Cost management is central to IndiGo’s success, with a lean administration, modest salary structures, and a focus on essential services over luxury. Supported by an in-house maintenance team and advanced technology, IndiGo maintains high fleet reliability, while fuel discounts due to volume further drive down costs. IndiGo’s success rests on its cost efficiency, robust operations, and customer-centered scheduling, setting a benchmark in India’s aviation market. Sharad Jha https://lnkd.in/gnNqQQUD

Every Year, One Airline Shuts Down in India Meanwhile, Indigo earned ₹8,000Cr last year IndiGo (InterGlobe Aviation Ltd) reached here, by focussing on 2 philosophies: Frugality & Simplicity And these are not just written on paper, but they’ve actually embraced it through examples like: 1. Securing the best deals from Airbus, focusing not just on reducing the purchase price of the aircrafts but also maintenance cost, saving thousands of crores every year. 2. To cut upfront costs, they pioneered the sales leaseback model, in which they bought aircrafts, & sold them for profit to a leasing company, who would then lease it back to them. 3. For the longest time, Indigo avoided unnecessary extras like in-flight magazines and microwaves, cutting costs even further. 4. Finally, at a time when competitors were trying to sell “luxury” services to the Indian consumers. Indigo thought of something very simple: “We will take you from Point A to Point B ON TIME” That brought in all the frequent business travelers who would go on to trust Indigo for 18 years! Now you may be wondering, what’s the result of doing all of this? - Indigo has a 60% domestic market share - It is among the top 10 world’s biggest airline, by number of flights - Barring pandemic, it has been profitable since its third year of operation - Now it wants to expand further and compete head on with companies like Emirates! --- By the way Indigo did an interesting collaboration with Mokobara, if you want to learn more about it, do check out our breakdown: https://lnkd.in/gDebbdNZ

𝐖𝐡𝐲 𝐝𝐢𝐝 𝐕𝐢𝐬𝐭𝐚𝐫𝐚 𝐚𝐧𝐝 𝐀𝐢𝐫 𝐈𝐧𝐝𝐢𝐚 𝐜𝐡𝐨𝐨𝐬𝐞 𝐭𝐨 𝐦𝐞𝐫𝐠𝐞? 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 *𝑽𝒊𝒔𝒕𝒂𝒓𝒂 Vistara, a full-service Indian airline, was established as a joint venture between Tata Sons and Singapore Airlines in 2015. Based in Gurugram, with its hub at Indira Gandhi International Airport, it quickly gained prominence for its premium services. By 2019, it held a 4.7% share of the domestic aviation market and served #34destinations using a modern fleet of #Airbus A320, A321neo, #Boeing 787-9, and Boeing 737-800NG aircraft. Vistara focused on offering premium service, cementing its place among leading Indian airlines. 𝑨𝒊𝒓 𝑰𝒏𝒅𝒊𝒂 Air India, the flag carrier of India, is headquartered in New Delhi. It operates a fleet of Airbus and Boeing aircraft, serving #102domestic and international destinations. With an 18.6% market share, it is India’s largest international carrier and a member of Star Alliance since 2014. Originally founded by J.R.D. Tata in 1932, it was nationalized in 1953 before being reacquired by Tata Sons in January 2022 through Talace Private Limited, marking a turning point in Indian aviation history. 𝑻𝒉𝒆 𝑺𝒉𝒊𝒇𝒕 𝒊𝒏 𝑰𝒏𝒅𝒊𝒂𝒏 𝑨𝒗𝒊𝒂𝒕𝒊𝒐𝒏 The Indian aviation industry is evolving toward a #two_pillar system led by Air India and IndiGo. These airlines are projected to control about #80% of the domestic market. The international sector's #combined_market_share is expected to rise from #37.8% to over #50%. This shift aims to draw consumer focus back to Indian carriers from foreign airlines, significantly enhancing the aviation ecosystem. The merger is expected to boost Indian carriers' competitiveness, positioning the country as one of the fastest-growing aviation markets globally.

𝐈𝐧𝐝𝐢𝐆𝐨: 𝐒𝐨𝐚𝐫𝐢𝐧𝐠 𝐭𝐨 𝐍𝐞𝐰 𝐇𝐞𝐢𝐠𝐡𝐭𝐬❗ 🌏✈️ 𝐖𝐨𝐫𝐥𝐝'𝐬 𝟑𝐫𝐝 𝐋𝐚𝐫𝐠𝐞𝐬𝐭 𝐀𝐢𝐫𝐥𝐢𝐧𝐞❗ 🏆 𝐌𝐚𝐫𝐤𝐞𝐭 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧: ₹𝟏,𝟕𝟎,𝟎𝟎𝟎 𝐂𝐫𝐨𝐫𝐞𝐬 💰 Founded in 2006, IndiGo (InterGlobe Aviation Ltd) has become India’s most successful and profitable airline in just 17 years. A remarkable journey led by two friends, 𝐑𝐚𝐤𝐞𝐬𝐡 𝐆𝐚𝐧𝐠𝐰𝐚𝐥 and 𝐑𝐚𝐡𝐮𝐥 𝐁𝐡𝐚𝐭𝐢𝐚, who combined their expertise to create an aviation powerhouse. Though they eventually parted ways, their legacy of success continues. 𝐊𝐞𝐲 𝐭𝐨 𝐓𝐡𝐞𝐢𝐫 𝐒𝐮𝐜𝐜𝐞𝐬𝐬? 🚀 Simple Strategies. 🚀 Know Your Customers 👥 🚀 Stick to a Single Aircraft Type: A320s ✈️ 🚀 Maintain Quality, Service, Training, and Cost Efficiency 📈 IndiGo's approach has carved a niche in the Indian aviation sector, overcoming challenges like rising operational and maintenance costs. 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞𝐬 𝐀𝐜𝐡𝐢𝐞𝐯𝐞𝐝: First airline to operate over 2,000 flights a day 🛫 One of the fastest airlines to reach 100 million passengers 🎉 𝟑 𝐆𝐫𝐨𝐰𝐭𝐡 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬: Reassure 💡 Develop 🚀 Create 🌟 With a vision to double in size by the end of the decade, IndiGo placed a historic order of 500 new aircraft with Airbus, in addition to their previous order of 450+ aircraft. 𝐑𝐞𝐜𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐮𝐜𝐜𝐞𝐬𝐬: 🚀 𝐐𝟒 𝐏𝐫𝐨𝐟𝐢𝐭: ₹1,895 crore, up 106% 📊 🚀 𝐑𝐞𝐯𝐞𝐧𝐮𝐞: ₹17,825.30 crore, up 25.9% YoY 💼 🚀 𝐅𝐘𝟐𝟒 𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭: ₹8,200 crore, compared to Air India Limited’s net loss of ₹7,000 crore 📈 IndiGo is not just an airline; it’s a story of innovation, resilience, and growth. 𝑯𝒂𝒗𝒆 𝒚𝒐𝒖 𝒇𝒍𝒐𝒘𝒏 𝒘𝒊𝒕𝒉 𝑰𝒏𝒅𝒊𝑮𝒐 𝒐𝒓 𝒅𝒐 𝒚𝒐𝒖 𝒑𝒓𝒆𝒇𝒆𝒓 𝒐𝒕𝒉𝒆𝒓 𝒂𝒊𝒓𝒍𝒊𝒏𝒆𝒔 𝒍𝒊𝒌𝒆 Air India Limited 𝒐𝒓 AirAsia? 𝑺𝒉𝒂𝒓𝒆 𝒚𝒐𝒖𝒓 𝒆𝒙𝒑𝒆𝒓𝒊𝒆𝒏𝒄𝒆𝒔 𝒃𝒆𝒍𝒐𝒘! ✈️✨ #IndiGo #Aviation #SuccessStory #AirlineIndustry #MarketLeader #Innovation #Growth #Travel

What made Indigo launch a loyalty program now ? IndiGo (InterGlobe Aviation Ltd) is the single largest Indian airline with 62% market share. A few days back I did a post talking about why Indigo does not have a loyalty program. But now they have announced this week not just a loyalty program but also a business-class. Here are 5 reasons why Indigo has taken this decision now- 1️⃣ With Vistara and Air India's merger under the Tata Group scales up, indigo stands to loose market share. 2️⃣ Loyalty is key in capturing this mind share for their consumers to accumulate points for long-term rewards and to choose to fly with Indigo. 3️⃣ Indigo is looking to scale up international routes and is a huge business traveller spend which Indigo can capitalize on. 4️⃣ With the service labels things become undifferentiated after a point. Introducing loyalty and new class allows them to cater to a wider range of passengers 5️⃣ With this, they can build stronger relationships with their customer base and ensure long-term loyalty The program is called Indigo Blue Chip. But I wonder what it's tag line 'Most hassle free , On time loyalty program' means ?? On time Loyalty program?? Indigo has done some good pre buzz by doing early signup, but the value proposition is not yet clear to me. What do you think about the Indigo Blue chip and would you sign up ? #loyalty #program #indigo #customer

IndiGo (InterGlobe Aviation Ltd) When you call yourself a low cost airline- do you mean our fare low or keeping your own costs low??? Meanwhile, it is good to see AIRINDIA LIMITED gradually building its brand back .. moderately priced, welcoming staff, timely take off, no extrapolation of landing time to call themselves “before time arrival’ and serving food in the craft! .. the way airlines used to be earlier .. i recollect first flying experience with Jets and Indian Airlines of early 2000s On the other hand, Indigo seems to be going down south .. overtly priced for a low cost airline, long delays with no empathy or apologies or compensation, unhappy staff (subjective), food quality complaints and mind you after paying money for it over and above .. All this is ok if you bring down your fare to a low cost airline category; because then I know what am I signing up for!! You are always charging more than your better counterparts like Vistara or Air India Pic: Landing at 9:15 am with Air India this morning for a 9:20 printed time 😃

Salestorrs, last month, IndiGo surpassed the American Southwest Airlines to become the world's third-largest airline by market capital. Further, it reported a record profit of ₹8,172.50 crore in FY2024 wasn't enough, the low-cost carrier IndiGo is set to launch business class seats this year, too. It will introduce business class on the busiest routes in India before the end of 2024. Thirty-five of IndiGo’s planes will be fitted with eight rows of business-class seats. The company will release further product details around its 18th anniversary in August. What brought about this step? And how will it impact the Indian aviation industry? Find out in today's #SalestorrsNews150, news in 150 words. LINK IN COMMENTS BELOW. IndiGo (InterGlobe Aviation Ltd) #indigoairlines #lowcostcarrier #businessclass #southwestarirines Air India Limited Air India Express SpiceJet Limited Vistara - TATA SIA Airlines Ltd. Tata Group

Goodbye Vistara - TATA SIA Airlines Ltd.: The End of an Era in Indian Aviation ✈️💔 🛫 Yesterday marked Vistara's final flight, closing the curtain on a premium airline that redefined quality in Indian skies. Launched in 2015, Vistara quickly carved out a niche with its exceptional service, gourmet meals, and luxurious cabin experience. In just 9 years, it became a favorite among Indian passengers, and today, the Vistara brand is celebrated for its loyal customer base and commitment to a premium flying experience. 🤝 Now, as Vistara merges into Air India Limited, passengers and analysts alike are left wondering if the Vistara ethos will survive in Air India’s hands. While promises of a seamless merger abound, only time will reveal whether the Air India brand can live up to Vistara’s high standards. 📉 This merger, however, reshapes an already concentrated market. With Air India and IndiGo now controlling over 90% of market share, Indian aviation has turned into a near-duopoly, leaving little competitive ground. For the 3rd largest domestic aviation market in the world, the options are surprisingly few. Airlines like SpiceJet and Akasa Air account for less than 7% combined, while three major players—Kingfisher, Jet Airways, and Go First—have gone bankrupt in just over a decade. 🤔 As we bid farewell to Vistara, questions loom: Will Air India honor the Vistara legacy? And in a high-demand market with few choices, can new entrants hope to thrive amid IndiGo’s upcoming premiumization and market dominance? #vistara #Airindia #Aviation #indigo #airlines #spicejet #akasaair