LCCs, or the low-cost carriers, have their businesses modeled on providing cheap air tickets to the customers. For this purpose, they try to achieve the operational efficiencies to the maximum and focus on the main demands and needs of the customers. Indigo Airlines is no different. There is no doubt that Indigo has been successful largely due to its focus on controlling the unnecessary expenditure. Here are some of the measures which help it control its costs:
1. Meals: Indigo does not offer complimentary meals. This helps it save time and costs associated with these. This, in turn, helps in achieving a faster turnaround time. It also does not allow the customers to carry the oily or messy foods, which helps it save some maintenance costs as well.
2. Bulk buys of aircraft: Indigo placed the order for the bulk buy of hundreds of aircraft on which it got good discounts, thereby saving huge on the capital costs. Further, lees capital costs also meant that it has to arrange for less financing and, thus, saved on the interest expense as well which set it ahead of its competitors.
3. No rewards or benefits programs: If you would expect Indigo Airlines to offering you all types of membership benefits or reward points which you can get on other carriers which are not the LCCs, then you are mistaken. It does not offer much on this front of the benefits programs which many other airlines do. However, as a part of its dynamic price policy, it does offer the regular discounts.
4. It flies the domestic and the cheap international flights with the minimum set of equipment which helps it reduce the weight load on-board the aircraft which, in turn, increase the fuel efficiency. So, in-flight entertainment systems are not to be found on its airplanes.
5. One-class seating: there is no business or first class seating in Indigo. Rather, there is only one class, the economy class, which helps it enormously in its seats distribution and freeing up space for more seats.
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