Story of Operations par Excellence of Indigo Airlines: Only Profitable Airline in Indian Airline Industry for Continuous Ten Years

Abstract

The Indigo airlines, run by the Interglobe aviation limited, have posted continuous profits since 2009 till 2019, the only airline in India to do so. Often regarded as the last man standing in the Indian aviation market, Indigo posted a $30 million (Rs.233cr) for the FY2019-20. In a market with a lot of entry barriers, cut throat competition, very low margins and a high upfront investment, how did Indigo manage to be the only airline with positive returns? What were the facts that led to indigo capturing nearly 49% of the Indian aviation market’s share? Why did such a trusted and profitable business post losses in FY 2019-20? This case demonstrates the business model and operational excellence of Indigo airlines which made, and kept them profitable in a business where other players struggled to survive.