The Indian Aviation Industry

Categories: Aviation India Industry Transport

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The Indian Aviation industry came to an absolute standstill, after the fall of Jet Airways, almost 40% of the market had completely stopped, airlines were starting to see profits because of the decline of a major airline. IndiGo to get a new aircraft every nine days. The Indian aviation industry saw a huge rise in revenue once IndiGo started its service. After the latest order of 250 aircraft, placed in 2014, IndiGo Airlines will get a new aircraft's delivery every nine days till 202, which will raise it's fleet size to 530 aircraft, compromising of mainly A320's and many A320 NEO's.

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IndiGo currently operates to 70 destinations, domestically and internationally. IndiGo launches new routes very often, almost every month the airline launches a new destination. IndiGo Airlines has keen plans of expanding their growth to international destinations, currently flying to 18 international destinations, they plan to open up larger sectors to more countries in the following years to come. They plan to mainly follow the path of globalization, since the Indian Aviation Industry needs more airlines to start international routes, especially after the fall of Jet Airways.

They also plan to change their flight schedule and interior of the aircraft to better equip them for the longer international flights, especially because after the decline of Jet Airways, they plan to operate the slot to London Heathrow, starting mid-2020.

This company was chosen because it is seeking globalization at a large scale and also changes to expand its fleet and further widening its horizon and adding more destinations.

SWOT Analysis of IndiGo

Now moving on to doing a SWOT analysis of IndiGo, we get to know a lot more about its globalization objectives.

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Briefly talking about SWOT, it means - Strengths, Weaknesses, Opportunities, Threats

Now, the strengths of IndiGo will be discussed in the following points:

Good brand image: IndiGo has maintained a good brand image throughout, its time in the aviation industry.
Services: IndiGo has top-notch services, such as good customer services, on-time departures and a user-friendly app.
High stakeholder engagement: Through a robust customer interface, IndiGo ensures that they take into consideration their customer's needs and employee satisfaction. In early 2016, IndiGo ordered 430 A320neo aircraft, becoming the first Indian carrier to make a step towards more fuel-efficient aircraft, since the fuel costs for airlines are currently at a peak. This in-turn benefits the stakeholder group of the owners because they end up spending much lesser than they would have spent otherwise which will raise their revenue, profits and shares.

Now, the weaknesses of IndiGo will be discussed in the following points:

Sustaining the company's profits: Indigo is positioned as a low-cost carrier in India and hence the pricing for the airline needs to be as low as it can be managed. Simultaneously, the costs need to be maintained as low as possible. However Indigo has often been unable to sustain it's profits consistently and this can be a weakness for the company.
Being too dependent on volumes: In order to sustain its profits, the company needs to ensure that the volumes were always high and business could not be affected by fluctuations in demand. This means that the airline needs to ensure that sufficient volume is being outsourced.

These points, affect the stakeholder group of the employees of the company, it does not benefit the employees since the flight crew and ground staff are usually overworked to cope with the growing demand in volume and so that the company can sustain its profits. In a recent article dated on 14th February, 2019 claimed that IndiGo canceled over a hundred of their flights since Pilots and Cabin Crew were reporting sick due to the hectic load of work volume.

Now, the opportunities for IndiGo Airlines will be discussed below:

Growing demand for foreign travel: In recent times, there is a surge in the number of people in India who need or want to travel to foreign locations both for business and pleasure since air travel is now a bit more affordable to the common man. This means that there is a huge scope for the airline to expand to more foreign as well as domestic destinations and link smaller cities to bigger cities via air transport.

This, in turn, benefits the stakeholder group of the consumers, because they will get to travel to international and domestic destinations easily, efficiently, quickly, and much more safely. Even people living in smaller cities will benefit because IndiGo aims at connecting smaller cities to more metropolitan cities and maybe even a few international cities. To finally complete the SWOT analysis, we do not mention the

Threats that IndiGo faces, the first one being :

Competition: The airline faces a lot of strong competition in the aviation market from airlines like - GoAir, Vistara, AirAsia and Air India.
Costing: The aviation market fluctuates very drastically hence, the key components of cost in an airline are, the salaries to be paid out to the employees on time, the fuel which is highly high importance as well as fluctuating good in the market because the aviation industry cannot survive without fuel hence to manage the pricing in accordance with the dynamics of fuel prices is a threat today and even in the future.

In conclusion, IndiGo Airlines benefits the consumers and owners to a good extent but does not benefit the employees in certain cases, although the airline has strong components in all 4 sections of the SWOT analysis and after taking all the factors into account, the impact of change and globalization on IndiGo Airlines will benefit the growth of the company immensely by exposing it to bigger and better opportunities in the future, after further reflecting on the case study and the preparation involved, I was surprised how much I have learned about both the change and globalization aspect of a company and the company itself,

The Indian Aviation Industry

SWOT Analysis of IndiGo

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