I have travelled quite a few times, by Indigo Airlines as well as Air Asia (Malaysia/ Singapore). Both are considered low cost airlines. No frills whatsoever.
Today's news on Indigo Airline making a profit of Rs.1,304 crores is endearing. Indigo joins Air Asia as one of the very few airlines globally to make a profit, in an industry that continues to evolve and struggles to get it's model right.
What makes these two airlines tick, amongst rubble of failed airlines, and bleeding ones? Set me thinking. I felt that a few factors, amongst others, could be working for them.
1) Aggressive pricing. Both have known to not shy away from pricing their seats aggressively, and focus on capacity utilization.
2) Elaborate network of locations covered, and comprehensive schedules.
3) Before-time take-offs most of the time. ( This has been my personal experience, others may disagree). This saves a ton on taxiing and bay charges at the airport.
4) More efficient routing, and maniacal focus on maintenance- resulting in no to low accidents thus far.
Many CEOs of airlines across the globe bemoan the high costs of operation, and the high fuel costs for their woes. Indigo and Air Asia, along with a couple in Europe ( Ryan Air and Easy Jet) are standing examples of how to run an airline profitably, even in the current business environment.
Long haul flights ( trans-Pacific or trans-Atlantic) could be a different model altogether. But for the rest them all, these airlines clearly are showing the future of the airline industry.
❤D❤
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