The aviation industry in India has been going through rough patch for the past few years. Go Air has lost itself in the clouds, Spice Jet is in the process of piling up more losses, Kingfisher went belly up, Jet Airways found a middle east partner to absorb its losses, and Air India has become like a white elephant to the state. But the silver lining is in the form of Indigo which announced profits for the fifth straight year. But the big puzzle is how does Indigo make profits when the competition is fierce, when the fuel cost is escalating, when the airport surcharges are going up. Do they have a secret recipe for success? But according to an industry expert the people in the Indigo keep things simple: Though they have huge fleet, they fly to fewer destinations so that they can increase the capacity at the same time adding up a new destination requires additional investment; they order only one kind of aircraft A-320 so that they have to deal with one set of pilots, engines, and spares; they dont stock spares inventory because they have signed agreements with the vendors to pay on hourly basis; their employee-aircraft ratio is going down every year and they train their pilots on how to thrust the plane so that it consumes less fuel and they dont stock in flight magazine to reduce fuel consumption. The going has been steady until now but Indigo might face rough weather in the form of new entrants Air Asia and Tata-Singapore Airline alliance. Mirchi Mirror U can unfasten your minds now !!!
Posted on: Tue, 29 Oct 2013 18:46:13 +0000
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