I refer to your point on customer relations and customer handling.I have travelled Indigo very frequently and for the last so many years.I always found their crew friendly,efficient and professional.The last few instances were excesses by few passengers, over blown by media with some support of rivals.Had it not been so, Indigo could not have 40%+ market share with ticket prices being almost same.
Very true. If I have an option and tickets are almost same priced I always fly indigo and I am normal public
Before mentioning it as a lowest cost airline, we should definitely check cost of Air Asia India.
Also, for international flights are they able to maintain this lowest cost structure because of high taxation and high ATF?
Can they use ATF from other countries where cost is low?
Indigo Operations were hit for 90 minutes today due to a systems issue.Most flights running late.
Yes, they can buy fuel at international stations where they fly and that is generally cheaper than domestic prices
I flew from Kochi to Hyderabad yesterday. The flight started 30 min late (hardly happens with them) and yet reached barely 5 min late. I think these flights include plenty of buffer time.
Yes I agree with you Air Asia is having the best CASK excluding fuel 2.39 cents when compared to 2.77 cents for the year 2017. ( Air Asia numbers does not include indian operations). But highly comparable with all the best lowcost airlines. Thank you for your question.
It’s because international airlines get fuel at much cheaper rates and air Asia having a hub at Kuala Lumpur must be meeting a big fuel requirement at much lower rates
It’s a good question, and this came up during Indigo’s Q2 con call. Indigo’s view is that, this sector is dominated by B traveller and is dominated by <15 day booking. Pricing in the <15 day segment has actually come down in this segment, given the excessive capacity that is available through the day.
Spice, Go and Others to improve their yields, have reduced the <15 day pricing for non peak hours and this has impacted overall yield and RASK.
Earnings Call Transcript
Weakening competition and reducing crude price. Indigo should benefit due to these.
Indigo to bring home first A321neo very soon.
First Flight & Customer Acceptance Flight for first A321neo (VT-IUA) built for Indigo completed.
-crude has fallen 31% from its recent peak. frackers apparently are breaking even at 30$. Forget Brent , Nymex crude seems to be the index to follow now onwards…
- reasonable crude oil prices are a tailwind for indigo and aviation in general…
- there are rumours of ATF prices dropping by 11% , indigo could make serious money in coming quarters. regardless of profits Indigo is grabbing sticky market share away at the most opportune time.
- By providing a key utility like public air transport to almost half of india it is making the economy more efficient by virtue of its legendary time saving systems. IST stands for IndiGo standard time not Indian stretchable time.
-i believe the best days lie ahead for this admirable organisation.
discl- InVested !
Agree, should see near term momentum. Only worry is significant expansion in ASK’s esp. through Introduction of new routes might cap benefits from lower ATF. Nevertheless great opportunity to load up!.