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Low Cost Airlines
https://en.wikipedia.org/wiki/List_of_low-cost_airlines
Site
http://www.lowcostairlines.com/
Tube
Slides
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Peter Drucker, the late management guru, once said inside the company there are only costs. The profits lie outside, with the customer. The prime task of any business is thus to create a customer.
IndiGo has succeeded because it has done both:
- managed its costs well, and
- created a new kind of airline customer - a profitable one.
- maintenance,
- fuel and
- debt
ASKM is a metric used to figure out what it costs an airline to fly every seat for every one km of distance.
And these costs are low because
- IndiGo does not keep any aircraft beyond six years, and
- Maintains only one kind of aircraft (and hence does not need different kinds of engineering and maintenance support), among other things.
- Moreover, the airline flies its aircraft more hours than others, and turns around its aircraft faster (it keeps them flying 11.4 hours a day, the highest in India).
The airline runs
- no frequent flyer programmes, and
- offers no in-flight frills or freebies.
- Barring corporate clients, food has to be fully paid for.
This is probably the most important thing the airline has done: creating value for all customers by allowing them to be part of the airline’s success story in on-time performance.
In The Future of Competition: Co-Creating Unique Value with Customers, CK Prahalad and Venkat Ramaswamy argue that in a world of hyper competition, the consumer is no longer willing to remain a passive recipient of offerings from companies. When they want something, they are happy to help the company with advice and effort to deliver the right product or service.This is exactly what IndiGo has done. While the Kingfishers and Jets tried to provide value to customers with freebies, special treatment in business class and bonus miles for frequent travellers, IndiGo has instead taught the customer to help the airline deliver what they want. Kingfisher offered great food and free earphones. Customers were happy to take all that – but it did not let the airline make money in a low-margin business. In a low-margin business, the customer has to help create a part of the value and take some of the costs off the airline’s plate. This is how IndiGo really made high profits in a field where there are only rotting carcasses to be seen.
https://en.wikipedia.org/wiki/IndiGo
Tube
https://www.youtube.com/results?search_query=IndiGo
Slides
http://www.slideshare.net/search/slideshow?searchfrom=header&q=IndiGo
https://www.facebook.com/goindigo.in
Sunday, February 12, 2023
Tuesday, February 7, 2023
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