The Indigo Airlines- Strategic Map

The IndiGo airlines’ activity map depicts the core strategies on which the organization functions. The purpose we made an activity map is to see whether any new decisions or ideas fit the existing strategy which the airline follows; its effect on various other functions connected to it. It also shows how every function is inter-related. According to us, the three main functions that IndiGo undertakes to attain operational effectiveness are:

1.    Customer centric services

2.    Performance

3.    Focus on aircrafts

The above mentioned functions are facilitated by a number of other factors as depicted in the activity map. We would highlight the factors which are unique to IndiGo airlines, they are as following:

Deft route planning

  IndiGo has shown skillful planning in capturing local market and adding new customers to its list. It aims in operating its connecting flights such that in case of including any new destinations for the flight it is ensured that the customer will not have to look at a non-Indigo flight to go to any of the newly added destinations.

Minimum turnaround time

  Turnaround time refers to the time during which the aircraft must remain parked at the gate. . The strategy is to ensure that the aircraft don't stay grounded for too long because they make money only when they are in air. That is why it has signed up "power by hour" agreements with vendors under which it pays for every hour the aircraft flies; in return, the vendors provide full spares and replacements whenever they are required.

C-checks

 Even its C-checks, which an aircraft has to go through regularly, are planned with cost in mind. IndiGo gets these checks done in Sri Lanka, unlike its competitors who send their aircraft to as far as Dubai, Hong Kong, Singapore and Kuala Lumpur. The advantage is that less fuel is burnt to reach Sir Lanka and, since all the planes go to one place, they get a better price.

Point to point transit

 IndiGo travels directly to a destination, rather than going through a central hub. This way they save on fuel and additional costs.

    

 Its consistent record of profitability has also helped the airline in getting more attractive financing deals to pay for its lease rentals.The effort to prune costs and improve profitability doesn't end here it has ordered A-320 Neos which are 15% more fuel-efficient and can make a substantial difference to the economics of the game.