Mind-map for value creation of indigo airlines: Past and future strategies

 

ABOUT INDIGO

With more than 2,000 daily flights, IndiGo, the biggest airline in India, connects travellers to 119 destinations. Their low-cost business model depends on operational effectiveness, which is provided by tech-driven processes and standardised fleets. This translates to reasonable prices and on-time arrivals, two qualities that define their service. IndiGo constantly seeks out greener technologies and sustainable methods, placing a high priority on employee well-being and environmental responsibility in addition to aviation. Their market leadership has been solidified by this all-encompassing strategy, which also sets them up for future expansion as a proponent of reasonably priced and ethical air travel.

 PAST VALUE CREATION STRATEGY

IndiGo's past success can be attributed to its laser focus on creating value through a three-pronged strategy: operational efficiency, employee well-being, and responsible growth. By giving these pillars top priority, IndiGo was able to carve out a market niche in the Indian aviation industry and generate substantial benefits for investors, staff, and customers. Their ongoing success and goals for the future were made possible by this strong foundation.

Building Operational Synergy: Beyond the tight schedule mentioned earlier, Indigo also leverages technology to streamline operations. For instance, the company's network planning system optimizes flight routes to minimize fuel consumption and flight times. This not only reduces costs but also improves customer satisfaction.

Employee Well-being: In addition to safety, Indigo prioritizes employee well-being through initiatives that promote work-life balance and mental health. These efforts have contributed to high employee engagement and productivity.

Environmental Sustainability: Recognizing the crucial role of environmental responsibility, Indigo actively seeks ways to reduce its carbon footprint. The company invests in fuel-efficient aircraft and explores alternative fuels like Sustainable Aviation Fuel (SAF).

Suggestions for a sustainable future

Economy Expansion: Indigo's rapid growth is driven by several factors, including its focus on low-cost fares, expansion into new markets, and strategic partnerships. The corporation will be even more of a dominant force in the Indian aviation sector thanks to its recent acquisition of a rival airline.

 Clean Skies Technology (CST): Indigo's involvement in the CST effort is indicative of its long-term dedication to environmental sustainability. Indigo wants to help the aviation sector become more environmentally friendly by reducing its dependency on fossil fuels and investing in the research and development of cleaner technology.

Beyond the forefront

Sustainable value creation extends beyond environmental measures. Here are additional recommendations for Indigo:

Diversity and Inclusion: Implement initiatives to increase diversity and inclusion across all levels of the organization, fostering a more equitable and representative workforce.

Community Engagement: Deepen engagement with local communities beyond disaster relief, partnering with NGOs and social enterprises to address specific needs and create shared value.

Responsible Tourism: Partner with local businesses and promote sustainable tourism practices that benefit local communities and minimize environmental impact.

Innovation and Technology: Invest in research and development of cleaner technologies and fuel alternatives, not just for environmental benefits but also to improve operational efficiency and cost-effectiveness.

Strong Corporate Governance: Strengthen corporate governance practices to ensure ethical decision-making, transparency, and accountability to stakeholders.

Sustainability Reporting: Expand on sustainability reporting, providing comprehensive and transparent information on environmental, social, and economic impacts and progress towards goals.

Indigo can ensure its long-term success and make a substantial contribution to a more vibrant and sustainable future for India by implementing these suggestions and making sustainability the centre of its future strategy.