Introduction To Aviation Industry: 1 - Soundarya Institute of Management and Science

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INTRODUCTION TO
AVIATION INDUSTRY

Aviation is the activities surrounding mechanical flights and the


aircrafts industry.  Aircraft  includes fixed wings  and  rotatory
wing types, morphable wings, wing less lifting bodies, as well as
lighter-than-air craft such as hot air balloons and airships. The
flying boats were in their turn replaced by land planes, and the
new and immensely powerful jet engine revolutionised both air
travel and military aviation.

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Etymology

The term aviation, noun of action from stem of Latin avis "bird"
with suffix - action meaning action or progress, was coined in
1863 by French pioneer Guillaume Joseph Gabriel de La Landelle
(1812–1886) in "Aviation ou Navigation aérienne sans ballons.

History of Aviation

Aviation began in the 18th century with the development of


the hot air balloons, an apparatus capable of atmospheric
displacement through buoyancy. Some of the most significant
advancements in aviation technology came with the controlled
gliding flying of Otto Lilienthal in 1896; then a large step in
significance came with the construction of the first powered
airplane by the Wright brothers in the early 1900s. Since that
time, aviation has been technologically revolutionized by the
introduction of the jet which permitted a major form of transport
throughout the world.

The modern aeroplane with its characteristic tail was established


by 1909 and from then, the history of the aeroplane became tied
to the development of more and more powerful engines. The first
great ships of the air were the rigid balloons pioneered by
Ferdinand von Zeppelin, which soon became synonymous with
airships and dominated long-distance flight until the 1930s,
when large flying boats became popular.

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Tower jumping

Since antiquity, there have been


stories of men strapping bird like
wings, stiffened cloaks or other
devices to themselves and attempting
to fly, typically by jumping off a tower.
The Greek legend of Daedalus and
Icarus is one of the earliest known;
others originated from ancient Asia
and the European Middle Age. During
this early period, the issues of lift, Daedalus working on Icarus wings.

stability and control were not


understood, and most attempts ended in serious injury or death.

According to John Harding, Ibn Firnas' glider was the first


attempt at heavier-than-air flight in aviation history. In 11th
century Benedictine monk Eilmer of Malmesbury attached wings
to his hands and feet and flew a short distance, but broke both
legs while landing, also having neglected to make himself a tail.

Many others made well-documented jumps in the following


centuries. As late as 1811,  Albrecht Berblinger constructed an
ornithopter  and jumped into the Danube.

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Kites
The kite ma
y have been the first form of man-made
aircraft. It was invented in China
possibly as far back as the 5 th century
BC by Mozi  (Mo Di) and Lu
Ban (Gongshu Ban). Later designs often
emulated flying insects, birds, and other
beasts, both real and mythical.

Some were fitted with strings and whistles to make musical


sounds while flying. Ancient and medieval Chinese sources
describe kites being used to measure distances, test the wind, lift
men, signal, and communicate and send messages.

Kites spread from China around the world. After its introduction
into India, the kite further evolved into the fighter kite, where an
abrasive line is used to cut down other kites.

Man-carrying kites

Man-carrying kites are believed to have been used extensively in


ancient China, for both civil and military purposes and
sometimes enforced as a punishment. Stories of man-carrying
kites also occur in Japan, following the introduction of the kite
from China around the seventh century AD.

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Rotor wings

The use of a rotor for vertical flight has existed since 400 BC in


the form of the bamboo-copter, an ancient Chinese toy. The
similar rotor on a nut appeared in Europe in the 14th century
AD.

Hot air balloons

From ancient times the Chinese have understood that hot air
rises and have applied the principle to a type of small hot air
balloon called a sky lantern.

A sky lantern consists of a paper balloon under or just inside


which a small lamp is placed. Sky lanterns are traditionally
launched for pleasure and during festivals. According to Joseph
Needham, such lanterns were known in China from the 3 rd
century BC.

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Renaissance

Eventually, after  Ibn Firnas's


construction, some investigators began
to discover and define some of the
basics of rational aircraft design. Most
notable of these was Leonardo da Vinci,
although his work remained unknown
until 1797, and so had no influence on developments over the
next three hundred years. While his designs are rational, they are
not scientific, and particularly underestimate the amount of
power that would be needed.

Leonardo studied bird and bat flight, claiming the superiority of


the latter owing to its unperforated wing. He analysed these and
anticipating many principles of aerodynamics. He understood
that "An object offers as much resistance to the air as the air
does to the object.” Isaac Newton  would not publish his  third
law of motion until 1687.

In 15th century, Leonardo wrote about and sketched many


designs for flying machines and mechanisms, including
ornithopters, fixed-wing gliders, rotorcraft, parachutes and a
wind speed gauge. His early designs were man-powered and
included ornithopters and rotorcraft; however he came to realise

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the impracticality of this and later turned to controlled gliding


flight, also sketching some designs powered by a spring.

Lighter than air

In 1670, Francesco Lana de Terzi published a work that


suggested lighter than air flight would be possible by using
copper foil spheres that, containing a vacuum, would be lighter
than the displaced air to lift an airship. While theoretically
sound, his design was not feasible: the pressure of the
surrounding air would crush the spheres. The idea of using a
vacuum to produce lift is now known as vacuum airship but
remains unfeasible with any current materials.

In 1709, Bartolomeu de Gusmao presented a petition to


King John V of Portugal, begging for support for his invention of
an airship, in which he expressed the greatest confidence. The
public test of the machine, which was set for 24 June 1709, did
not take place. According to contemporary reports, however,
Gusmao appears to have made several less ambitious
experiments with this machine, descending from eminences. It is
certain that Gusmao was working on this principle at the public
exhibition he gave before the Court on 8 August 1709, in the hall
of the Casa da India in Lisbon, when he propelled a ball to the
roof by combustion.

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Balloons

1783 was a watershed year for ballooning and aviation. Between


4th June and 1st December, five were achieved in France:
 On 4th June, the Montgolfier brothers demonstrated their
unmanned hot air balloon at Annonay, France.
 On 27th August, Jacques Charles launched the world's
first unmanned hydrogen-filled balloon, from the Champ
de Mars, Paris.
 On 19th October, the Montgolfiers launched the first
manned flight, a tethered balloon with humans on board,
at the  Folie Titon  in Paris. The aviators were the
scientist Jean-Francois Pilatre de Rozier, the
manufacture manager  Jean-Baptiste Réveillon, and
Giroud de Villette.

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 On 21th November, the Montgolfiers launched the first


free flight with human passengers. King Louis XVI had
originally decreed that condemned criminals would be
the first pilots, but Jean-François Pilâtre de Rozier, along
with the Marquis François d'Arlandes, successfully
petitioned for the honor. They drifted 8 km (5.0 mi) in a
balloon-powered by a wood fire.
 On 1st December, Jacques Charles and the Nicolas-Louis
Robert  launched their manned hydrogen balloon from
the  Jardin des Tuileries in Paris, as a crowd of 400,000
witnessed. They ascended to a height of about 1,800 feet
(550 m) and landed at sunset in Nesles-la-Vallee after a
flight of 2 hours and 5 minutes, covering 36 km. After
Robert alighted Charles decided to ascend alone. This
time he ascended rapidly to an altitude of about 9,800
feet (3,000 m), where he saw the sun again, suffered
extreme pain in his ears, and never flew again.

Airships

Airships were originally called "dirigible


balloons" and are still sometimes called
dirigibles today. Work on developing a
steerable balloon continued sporadically
throughout the 19th century. The first
powered, controlled, sustained lighter-than-
air flight is believed to have taken place in

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1852 when Henri Giffard flew 15 miles (24 km) in France, with a


steam engine driven craft.

Another advance was made in 1884, when the first fully


controllable free-flight was made in a French Army electric-
powered airship, La France, by Charles Renard and Arthur
Krebs. The 170-foot (52 m) long, 66,000-cubic-foot (1,900 m3)
airship covered 8 km (5.0 mi) in 23 minutes with the aid of an
8½ horsepower electric motor.

However, these aircraft were generally short-lived and extremely


frail. Routine, controlled flights would not occur until the advent
of the internal combustion engine.

The first aircraft to make routine controlled flights were non-rigid


airships (sometimes called "blimps".) The most successful early
pioneering pilot of this type of aircraft was the Brazilian Alberto
Santos-Dumont  who effectively combined a balloon with an
internal combustion engine. On 19 th October 1901, he flew his
airship Number 6 over Paris from the Parc de Saint Cloud around
the Eiffel Tower and back in under 30 minutes to win
the Deutsch de la Meurthe prize. Santos-Dumont went on to
design and build several aircraft.

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At the same time that non-rigid airships were starting to have


some success, the first successful rigid airships were also being
developed. These would be far more capable than fixed-wing
aircraft in terms of pure cargo carrying capacity for decades.

17th and 18th centuries

Italian inventor  Tito Livio Burattini, invited by the  Polish  King


Władysław IV  to his court in  Warsaw, built a model aircraft
with four fixed glider wings in 1647. Described as "four pairs of
wings attached to an elaborate 'dragon', it was said to have
successfully lifted a cat in 1648 but not himself. He promised
that "only the most minor injuries" would result from landing the
craft. His "Dragon Volant" is considered "the most elaborate and
sophisticated aeroplane to be built before the 19 th Century".

The first published paper on aviation was "Sketch of a Machine


for Flying in the Air" by Emanuel Swedenborg published in 1716.
This flying machine consisted of a light frame covered with strong
canvas and provided with two large oars or wings moving on a
horizontal axis, arranged so that the upstroke met with no
resistance while the downstroke provided lifting power.

Swedenborg knew that the machine would not fly, but suggested
it as a start and was confident that the problem would be solved.
He wrote: "It seems easier to talk of such a machine than to put it

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into actuality, for it requires greater force and less weight than
exists in a human body. The science of mechanics might perhaps
suggest a means, a strong spiral spring. If these advantages and
requisites are observed, perhaps in time to come someone might
know how better to utilize our sketch and cause some addition to
be made so as to accomplish that which we can only suggest. Yet
there are sufficient proofs and examples from nature that such
flights can take place without danger, although when the first
trials are made you may have to pay for the experience, and not
mind an arm or leg".

19th Century

Balloon jumping replaced tower jumping, also demonstrating


with typically fatal results that man-power and flapping wings
were useless in achieving flight. At the same time scientific study
of heavier-than-air flight began in earnest.

In 1801, the French officer  André Guillaume Resnier de


Goue managed a 300-metre glide by starting from the top of the
city walls and broke only one leg on arrival. In 1837 French
mathematician and brigadier general Isidore Didion stated,
"Aviation will be successful only if one finds an engine whose
ratio with the weight of the device to be supported will be larger
than current steam machines or the strength developed by
humans or most of the animals".

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Drawing directly from Cayley's work, Henson's 1842 design for


an aerial steam carriage  broke new ground. Although only a
design, it was the first in history for a propeller-driven fixed-wing
aircraft.

It achieved lift-off under its own power after launching from a


ramp, glided for a short time and returned safely to the ground,
making it the first successful powered glide in history.

Jean-Marie Le Bris and his flying machine, Albatros II, 1868

Alphonse Penaud, a Frenchman, advanced the theory of wing and


aerodynamics and constructed successful models of aeroplanes,
helicopters and ornithopters. In 1871, he flew the first
aerodynamically stable fixed-wing aeroplane, a model monoplane
he called the "Planophore", a distance of 40 m (130 ft). Penaud's
model incorporated several of Cayley's discoveries, including the
use of a tail, wing dihedral for inherent stability, and rubber
power. The planophore also had longitudinal stability, being
trimmed such that the tailplane was set at a smaller angle of
incidence than the wings, an original and important contribution
to the theory of aeronautics. Pénaud's later project for an
amphibian aeroplane, although never built, incorporated other

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modern features. A tailless monoplane with a single vertical fin


and twin tractor propellers, it also featured hinged rear elevator
and rudder surfaces, retractable undercarriage and a fully
enclosed, instrumented cockpit.

In 1884, Alexandre Goupil published his work La Locomotion


Aerienne  (Aerial Locomotion), although the flying machine he
later constructed failed to fly.

Maxim's flying machine

Sir Hiram Maxim was an American engineer who had moved to


England. He built his own whirling arm rig and wind tunnel and
constructed a large machine with a wingspan of 105 feet (32 m),
a length of 145 feet (44 m), fore and aft horizontal surfaces and a
crew of three. Twin propellers were powered by two lightweight
compound steam engines each delivering 180 hp (130 kW).

The overall weight was 8,000 pounds (3,600 kg). It was intended


as a test ride to investigate aerodynamic lift: lacking flight
controls it ran on rails, with a second set of rails above the
wheels to restrain it. Completed in 1894, on its third run it broke
from the rail, became airborne for about 200 yards at two to

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three feet of altitude and was badly damaged upon falling back to


the ground. It was subsequently repaired, but Maxim abandoned
his experiments shortly afterwards.

Langley

After a distinguished career in astronomy and shortly before


becoming Secretary of the  Smithsonian Institution, Samuel
Pierpont Langley started a serious investigation into
aerodynamics at what is today the  University of Pittsburgh.

In 1891, he published Experiments in Aerodynamics detailing his


research, and then turned to building his designs. He hoped to
achieve automatic aerodynamic stability, so he gave little
consideration to in-flight control.  On 6th May 1896,
Langley's Aerodrome No.5 made the first successful sustained
flight of an unpiloted, engine-driven heavier-than-air craft of
substantial size. It was launched from a spring-actuated catapult
mounted on top of a houseboat on the Potomac River near
Quantico, Virginia. Two flights were made that afternoon, one of
1,005 metres (3,297 ft) and a second of 700 metres (2,300 ft), at
a speed of approximately 25 miles per hour (40 km/h). On both
occasions, the Aerodrome No.5 landed in the water as planned,

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because, in order to save weight, it was not equipped with


landing gear.

Whitehead
Gustave was a German who emigrated
to the U.S., where he soon changed his
name to Whitehead. From 1897 to 1915,
he designed and built early flying
machines and engines. On 14 August
1901, two and a half years before the
Wright Brothers' flight, he claimed to have carried out a
controlled, powered flight in his  Number 21 monoplane  at
Fairfield, Connecticut. The flight was reported in the Bridgeport
Sunday Herald local newspaper. About 30 years later, several
people questioned by a researcher claimed to have seen that or
other Whitehead flights.

Wright brothers

The Wrights appear to be the first to make serious studied


attempts to simultaneously solve the power and control
problems. Both problems proved difficult, but they never lost
interest. They solved the control problem by inventing  wing
warping for roll control, combined with simultaneous yaw control
with a steerable rear rudder.

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Almost as an afterthought, they designed and built a low-


powered internal combustion engine. They also designed and
carved wooden propellers that were more efficient than any
before, enabling them to gain adequate performance from their
low engine power. Although wing-warping as a means of lateral
control was used only briefly during the early history of aviation,
the principle of combining lateral control in combination with a
rudder was a key advance in aircraft control. While many
aviation pioneers appeared to leave safety largely to chance, the
Wrights' design was greatly influenced by the need to teach
themselves to fly without unreasonable risk to life and limb, by
surviving crashes. This emphasis, as well as low engine power,
was the reason for low flying speed and for taking off in a
headwind. Performance, rather than safety, was the reason for
the rear-heavy design because the canard could not be highly
loaded; anhedral wings were less affected by crosswinds and were
consistent with the low yaw stability.

The Wrights continued flying


at Huffman Prairie near
Dayton, Ohio  in 1904. In
May 1904 they introduced
the Flyer II, a heavier and
improved version of the
original Flyer. On 23rd June
1905, they first flew a third machine, the Flyer III. After a severe
crash on 14 July 1905, they rebuilt the Flyer III and made

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important design changes. They almost doubled the size of


the elevator and rudder and moved them about twice the
distance from the wings.
They added two fixed vertical vanes between the elevators and
gave the wings a very slight dihedral. They disconnected the
rudder from the wing-warping control, and as in all future
aircraft, placed it on a separate control handle. When flights
resumed the results were immediate. The serious pitch instability
that hampered Flyers I and II was significantly reduced, so
repeated minor crashes were eliminated. Flights with the
redesigned Flyer III started lasting over 10 minutes, then 20,
then 30. Flyer III became the first practical aircraft flying
consistently under full control and bringing its pilot back to the
starting point safely and landing without damage.

Pioneers in Europe
Although full details of the Wright
Brothers' system of flight control had
been published in L’Aerophile in
January 1906, the importance of this
advance was not recognised, and
European experimenters generally concentrated on attempting to
produce inherently stable machines.

On 13th September 1906, a day after Ellehammer's tethered flight


and three years after the Wright Brothers' flight, the
Brazilian Alberto Santos-Dumont made a public flight in Paris
with the 14-bis, also known as Oiseau de proie  (French for "bird

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of prey"). This well-documented event was the first flight verified


by the Aero-Club de France of a powered heavier-than-air
machine in Europe and won the Deutsch-Archdeacon Prize for
the first officially observed flight greater than 25 m (82 ft). On
12th

November 1906, Santos-Dumont set the first world record


recognized by the Federation Aeronautique Internationale by
flying 220 m (720 ft) in 21.5 seconds. Only one more brief flight
was made by the 14-bis in March 1907, after which it was
abandoned.

In March 1907, Gabriel Voisin flew the first example of his Voisin


biplane. On 13th January 1908, a second example of the type was
flown by Henri Farman to win the Deutsch-Archdeacon Grand
Prix d'Aviation prize for a flight in which the aircraft flew a
distance of more than a kilometer and landed at the point where
it had taken off. The flight lasted 1 minute and 28 seconds.

Between the World Wars (1918 – 1939)

The years between  World


War I and  World War II  saw
great advancements in
aircraft technology. Airplanes
evolved from low-powered
biplanes made from wood
and fabric to sleek, high-powered monoplanes made of

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aluminium, based primarily on the founding work of Hugo


Junkers during the World War I period and its adoption by
American designer William Bushnell Stout and Soviet
designer Andrei Tupolev.

The first successful rotorcraft appeared in the form of


the autogyro, invented by Spanish engineer Juan de la
Cierva and first flown in 1919. In this design, the rotor is not
powered but is spun like a windmill by its passage through the
air. A separate powerplant is used to propel the aircraft forwards.

After World War I, experienced fighter pilots were eager to show


off their skills. Many American pilots became barnstormers,
flying into small towns across the country and showing off their
flying abilities, as well as taking paying passengers for rides.
Eventually, the barnstormers grouped into more organized
displays. Air shows sprang up around the country, with air races,
acrobatic stunts, and feats of air superiority.

The air races drove engine and airframe development


the Schneider Trophy, for example, led to a series of ever faster
and sleeker monoplane designs culminating in the Supermarine
S.6B. With pilots competing for cash prizes, there was an
incentive to go faster. Amelia Earhart was perhaps the most
famous of those on the barnstorming/air show circuit. She was

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also the first female pilot to achieve records such as the crossing
of the Atlantic and Pacific Oceans.

Digital age - 21st Century

21st century aviation has seen increasing interest in fuel savings


and fuel diversification, as well as low cost airlines and facilities.
Additionally, much of the developing world that did not have good
access to air transport has been steadily adding aircraft and
facilities, though severe congestion remains a problem in many
upcoming nations. Around 20,000 city pairs are served by
commercial aviation, up from less than 10,000 as recently as
1996.

At the beginning of the 21 st century, digital technology allowed


subsonic military aviation to begin eliminating the pilot in favor
of remotely operated or completely autonomous unmanned aerial
vehicles (UAVs). In April 2001 the unmanned aircraft Global
Hawk flew from Edwards AFB in the US to Australia non-stop
and unrefuelled. This is the longest point-to-point flight ever
undertaken by an unmanned aircraft and took 23 hours and 23
minutes. In October 2003, the first totally autonomous flight
across the Atlantic by a computer-controlled model aircraft
occurred. UAVs are now an established feature of modern

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warfare, carrying out pinpoint attacks under the control of a


remote operator.

INTRODUCTION TO
INDIGO AIRLINE

INDIGO
Parent Company Inter-Globe Enterprises

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Category Indian Domestic Sector


Sector Airlines
Tagline/Slogan Go IndiGo
USP On Time Performance, Lowest Price

History

Early beginnings

IndiGo was set up in early 2006 by Rakesh Gangwal and Rahul


Bhatia, of Inter Globe Enterprises. Inter Globe holds 51.12%
stake in IndiGo and 48% is held by Caelum Investments, a
Virginia, US based firm, run by Rakesh Gangwal.

IndiGo placed a firm order of 100 Airbus A320-200 aircraft


during June 2005 in plans to commence operations in mid2006.
Former US Airways Executive vice-President and Marketing and
Planning Bruce Ashby joined IndiGo as its Chief Executive
Officer. The airline already acquired parking lots for its brand
new aircraft at both Mumbai and Delhi airports. By the time they
announced the first flight, they had already scheduled their first
20 aircraft.

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IndiGo took delivery of its first Airbus A320-200 aircraft on 28


July 2006, nearly one year after placing the order, and
commenced operations on 4 August 2006 with a service from
New Delhi to Imphal via Guwahati. By the end of 2006, the
airline had six aircraft. Nine more aircraft were acquired in 2007
taking the total to 15. By December 2010, IndiGo replaced the
state run flag carrier Air India as the top third airline in India. It
already had a 17.3% of the market share, behind Kingfisher
Airlines and Jet Airways.

Going international

Following Indian regulations, in January 2011 IndiGo received its


license to operate international flights upon completing five years
of operations. IndiGo's first international service was launched
between New Delhi and Dubai on 1 September 2011. Over the
following weeks, the international services were expanded to
serve Bangkok, Singapore, Muscat and Kathmandu from New
Delhi and Mumbai. On February 15, 2012, the civil aviation
ministry of India has lifted the barriers on the carrier when was
set over a year ago to defend the sinking national flag carrier Air
India from competition on the International routes. The ministry
announced that IndiGo's proposals to fly to Dammam and Doha
would get cleared immediately. IndiGo is known to have applied
for permission to fly to these two cities several months ago and
wasn't approved because of the barrier.

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Rapid expansion

By early 2012, IndiGo had taken the delivery of its 50th aircraft
in less than 6 years. IndiGo is known to have placed the largest
order in commercial aviation history during 2011, when Airbus
won the US$ 15 billion deal for 180 aircraft. This deal pushed up
the percentage of Airbus aircraft in India to 73%.

As of February 2012, IndiGo was expanding rapidly and was


making solid profits, the only airline in India to do so. It had
replaced Kingfisher as the second largest airline in India in terms
of market share. IndiGo's strong adherence to the low cost model,
buying only one type of aircraft and keeping operational costs as
low as possible along with heavy emphasis on punctuality are
said to be some of the reasons for its success even when the
airline industry in India is currently going through a bad patch.
IndiGo focuses on adding a new plane every six weeks and
sometimes even faster. However, this rapid expansion had led to
a scathing report by the DGCA in December 2011, which
highlighted problems in the airline which could impact safety due
to rapid expansion.

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STP
Segment Cost Conscious Passengers
Target Group Lower Middle Class/ Middle Class
Positioning Low Cost No Frills
Competition
Competitors 1. Go Air
2. SpiceJet
3. Kingfisher Red
4. Jet Konnect

Introduction

IndiGo  is an Indian  low-cost airline  headquartered in


Gurugram, Haryana, India. It is the largest airline in India by
passengers carried and fleet size, with a 59.24% domestic market
share as of August 2020. It is also the largest individual
Asian low-cost carrier in terms of jet fleet size and passengers
carried, and the sixth largest carrier in Asia with over
6.4 crore (64 million) passengers carried in financial year 2018–
19. The airline operates 1,500 flights everyday to 87 destinations
– 63 domestic and 24 international. It has its primary hub at IGI
Airport, Delhi.

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India is one of the fastest growing aviation industries in the


world. Because of the introduction of liberalization policy in the
Indian aviation sector, the industry has witnessed difference with
the entry of the privately owned full service airlines and low cost
carriers. In 2006, the private carriers accounted for around 75%
share of the domestic aviation market. Besides, there was
significant increase in the number of domestic air travel
passengers. Some of the factors that have resulted in higher
demand for air transport in Indian clued the growing purchasing
power of middle class, low airfares offered by low-cost carriers
and the growth of the tourism industry in India. In addition to
the liberalization policy, the deregulation policy has also played a
major role to encourage private players in the aviation industry.

The growth in the aviation industry looked promising and hence


attracted many low cost carriers like Spice Jet, Go Air and IndiGo
after the success of Air Deccan in 2003 .On one hand, the
booming opportunities incited players to expand capacity but on
the other hand, rising fuel costs and taxation rates, increased the
operational costs. Thus the low-cost players found it difficult to
maintain their commitment. In their urge to survive, they were
compelled to increase prices, add free refreshments and
beverages on-board, etc. Some players sought refuge in mergers,
whereas some survived by modifying their business model.

These efforts helped IndiGo to offer its passengers low air fares.
Indigo is the latest entrant as a low cost carrier in the aviation

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industry of India. It started its operations on August 4, 2006.


InterGlobe Enterprises, a renowned travel corporation, is the
owner of IndiGo. The IndiGo team uses all of these resources to
design processes and rules that are safe and simple, that make
sense, and that cut waste and hassles, which in turn ensures a
uniquely smooth, seamless, precise, gimmick-free customer
experience at fares that are always affordable. It was awarded the
title of “Best Domestic Low-Cost Carrier” In India for 2008. The
airline currently operates 120 daily flights with a fleet of nineteen
brand new Airbus A320 aircraft and flies to 17 destinations.
IndiGo plans to serve approximately 30Indian cities by 2010,
with a fleet of approximately 40 A320s.

Executive Summary

Objectives

The objective of this report is to study the external environment


of the Aviation Industry in India. Subsequently, internal
environment analysis is conducted for IndiGo Airlines. With the
help of this comprehensive study, we have suggested
recommendations that can be adopted by IndiGo to sustain its
competitive advantage by utilizing its cost leadership strategy.

Methods

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To understand the important factors responsible for the


formulation of corporate strategy, we have utilized Strategic
Management tools like Porter’s Five Forces model, Value Chain
analysis, TOWS matrix etc.

Limitations

Due to confidentiality clause and corporate policies of the


company, accurate financial data could not be obtained for
IndiGo Airlines. However, most recent and reliable data sources
have been referenced for the analysis of this case.

Findings

IndiGo airlines entered the low cost carrier market in aviation


industry in 2006. It has been able to achieve its break even
within two years of its launch and has reported gross revenue of
60 cores this year. Despite the decline in the aviation industry
and global economic slowdown, IndiGo has accelerated its growth
rate. Also, IndiGo being a new entrant has managed to become a
cost leader in its sector.

Mission

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To inspire their customers and those they care about with life-
enriching products and experiences.

Vision

Making Connections. Creating Experiences.

Our Customer Promises

We exist to add a little joy to our customers’ lives, each time


they interact with us or our products.

Our Belief

 Customer Engagement: We exist to add joy to our


customers’ lives – when they interact with us and when
they interact with our products.
 Customer Joy: Each and every person in the company
should understand how his or her work contributes to
the creation of joyful customer moments.
 Respect: We owe to each other, irrespective of role or
position, the same level of respect and caring as we
would show to a valued friend.

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 Teamwork: We have a responsibility to create an


environment where each individual is inspired to
perform to the best of his or her ability.
 Passion: Passion creativity and innovation are the keys
to sustainable growth and profitability. Each individual
working at Indigo should reflect this in his or her work.
Our role, as a company, is to encourage and reward the
demonstration of these attributes.
 Community: We have a responsibility to give back to
the communities in which we operate.

Indigo Fleet

In
Aircraft Orders Passengers Notes
service

Airbus A320-200 122 — 180 To be phased out

Airbus A320neo 116 222 180 Largest operator

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186

Airbus A321neo 24 130 222

Airbus A321LR — TBA


248
Airbus A321XLR — TBA

ATR 72-600 25 25 74

Total 287 625

Fleet developments

IndiGo placed an order for 100 Airbus A320-200 aircraft worth


US$6 billion in June 2005 during the Paris Air Show with plans
to commence operations in mid-2006.The airline received its first
A320 in July 2006 and planned to induct 100 aircraft by 2015–
2016.IndiGo signed a memorandum of understanding for an
additional 180 Airbus A320 aircraft including 150 with the New
Engine Option (NEO) worth US$15 billion on 11 January 2011.
In 2012, the airline took delivery of its 50th aircraft and the
100th aircraft was delivered on 4 November 2014, completing its
initial order ahead of schedule.

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The Airbus A320neo family aircraft ordered in 2011 were to be


delivered starting 2015. However, due to a delay in the
production and delivery of these aircraft, IndiGo dry-leased a
total of 22 used aircraft to cope with the demand. On 15 October
2014, IndiGo expressed its intention to order a further 250
A320neo aircraft worth US$25.7 billion at list prices. On 15
August 2015, IndiGo confirmed the order for 250 A320neo
aircraft for $26.5 billion. The order also provides IndiGo the
flexibility to convert some A320neos to A321neoLRs that can seat
more passengers and fly on longer routes. The order for 250 jets
was Airbus' single largest order by number of aircraft. IndiGo
received the first A320neo in March 2016.

On 10 October 2019, Airbus delivered its 1000th A320neo


aircraft to Indigo. On 29 October 2019, IndiGo placed a firm
order for 300 A320neo Family aircraft comprising a mix of
A320neo, A321neoLR and A321XLR aircraft, taking IndiGo's total
number of A320neo Family aircraft orders to 730. Airbus
monthly reports lists the 300 order as 87 A320neo and 213
A321neoLR/A321XLR. IndiGo took delivery of its first ATR 72–
600 in November 2017. As of 31 December 2019, the airline has
more than 250 aircraft in its fleet, being the first Indian airline to
achieve this record.

Services

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Being a low-cost carrier, IndiGo offers only economy


class seating. To keep fares low, IndiGo does not provide
complimentary meals on any of its flights, though it does have a
buy-on-board in-flight meal programme. No in-flight
entertainment is available. Hello 6E, the in-flight magazine
published by IndiGo, is available for passengers to read. IndiGo
offers premium services, such as a pre-assigned seat, multiple
cancellations and priority check-in, to passengers who are willing
to pay a higher fare. In September 2019, the company
announced its tie up with Sony LIV, an on demand video app for
providing its passengers with entertainment options in-flight and
at the airport.

SWOT Analysis

Strength

 IndiGo has high brand awareness and brand equity.

 Cost leadership: Successful implementation of low-cost


strategy.

 Highly efficient management that ensures high rate of on-


time arrivals.

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 Tie-up with hotels.

 Ease of ticket booking for customers.

Weakness

 Scope of product differentiation is less.

 Benefits of the innovations implemented by IndiGo to


provide better services to the customers are short-lived, as
these can be easily imitated by the competitors.

 IndiGo is not exploring the untapped domestic air cargo


market.

 Not on too many routes as compared to competitors

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 Still has to establish itself on international destinations

Opportunities

 IndiGo airlines have not ventured into the huge air freight
market which can contribute a sizeable portion of the
revenue. A study by Centre for Asia Pacific Aviation or
CAPA.

 An aviation consulting firm estimates the cargo services of


3.4million tonnes per annum.

 According to a research conducted by Phocis, Indian


domestic traffic will touch 86.1million by 2010, up from
32.2 million in 2007.

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 The flight density of IndiGo airlines is limited in domestic


market; hence there is a big scope to increase the flight
frequency

 The huge untapped international sectors should be explored


once IndiGo has considerable presence in the domestic
market.

Threats

 ATF (Air Turbine Fuel) prices have increased radically since


2005.

 Foreign and private players often poach work-force of


competitors.

 Extensive Government Interference can affect the


accountability of the organization. In aviation industry,
government has control over fuel prices, foreign investments
(e.g FDI policies), tourism laws, taxes etc. This can greatly
affect the day-to-day business in the airline industry.

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 Like every other industry, recession has hit aviation


industry as well. People have cut down on tourism and
corporate travels have also been slashed down.

 The shortage of trained pilots, co-pilots and ground staff is


severely limiting the growth prospects of all the airline
companies.

Problem Statement

Passenger satisfaction service arises when a company can


provide passengers with benefits that exceed passengers‟
expectation and this is considered value-added. If customers are
satisfied with the product or service, they will buy more, and do
so more often. Passenger gratification is an essential goal for each
airline providing passenger services. The on-board experience is
still something special for the customer. The customer has a wide
choice to select the suitable airline product according to their
requirements. Therefore, airlines are continuously working on the
in-flight product development and innovation to differentiate
themselves from competitors. During the last few year a variety of
in-flight product innovations have entered into the market. This
includes the aircraft seat on long haul flights as an important

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product element which is continuously being improved and


renewed according to its life cycle and changing customer
requirements. The current development of business class seat
roll-outs shows the significance of this product element which
influences the buying decision of the passenger especially on long
haul flights. If the passenger is not satisfied, due to the negative
experience, the client will reconsider the buying decision for
further flights and will probably switch to another airline. This
kind of situation belongs to the daily business in the passenger
airline industry.

Excellent passenger satisfaction is one of the greatest


assets for air business in today’s competitive environment. There
are many factors that can help an airport to build its customer
base, and passenger service and satisfaction can be a
determining factor in the success of an entire operation. The
research related to service quality and customer satisfaction in
the airline industry has been growing in interest because the
delivery of high service quality is essential for airlines‟ survival
and competitiveness. A number of studies have conducted in
service quality related theories and methods in the airline
industry. Conversely, most previous airline service studies have
relied mainly on passenger satisfaction and service quality to
describe passenger evaluations of services and have focused on
the effect of airline service quality at the aggregate construct
level.

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Although examining the effect of individual dimensions of


service attributes has potentially great utility for airline
managers, the effects of individual dimensions of airline service
quality has not been fully investigated in previous airline service
studies. In addition, the findings would enhance the airliners to
improve their customer relations management as well as their
brand loyalty.

Objectives

This study is conducted with four objectives. These are: The


main objective of this study is to examine the satisfaction of
passengers on service quality of different airlines. To explore the
level of passengers‟ satisfaction with the service quality on Indian
airlines in terms of three dimensions of service quality
instrument i.e., in-fight services, in-flight digital services and
back office operations. To elucidate the relationship between
service qualities delivered to passengers and their satisfaction as
to different class of journey. To examine the demographic profile
of the respondents and their satisfaction on the services rendered
by the airliners.

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Significance of the Study

This study contributes to further research, organizational


perspective and individual perspective (customer). The certainty
and reliability of the result are able to act as a guideline for
future research in Indian airlines industry.
It also helps Airlines Company to identify the real needs and
wants of the customers in putting effort to acquire as well as
retain the customer quality. Furthermore, this study helps the
airlines company by providing useful information to set
appropriate policy in making sure that the customer experiences
maximum level of satisfaction.

Literature Review

Introduction

Published articles, journals and books were collected to


investigate the theories and past empirical studies which are
related to this study.

Review of Literature

Passenger satisfaction in airline operations has become


critically important and Dennett, Ineson, Stone, and Colgate
(2000) suggest that as competition created by deregulation has
become more intense, service quality in the airline industry has

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also received more attention. Airline companies also attempted to


differentiate their services through the use of computerized
reservation systems which were also designed to create customer
loyalty in the distribution channels (Lee and Cunningham, 1996).
However, despite the airlines‟ efforts to differentiate their
services, an extensive survey of frequent fliers conducted by Ott
(1993) revealed that consumers did not perceive any difference
from one carrier to another.

Cronin and Taylor (1992) originate empirical provision for


the idea that perceived service quality led to satisfaction and
argued that service quality was actually an antecedent of
consumer satisfaction. Bitner and Hubbert (1994) determined
that service encounter satisfaction was quite distinct from overall
satisfaction and perceived quality. Service quality will vary; the
definitions are all formulated from the customer perspective: that
is, what customers perceive are important dimensions of quality.
Gronroos (1982) and Parasuraman, Zeithaml and Berry (1988)
were the pioneers in the conceptualization of the service quality
construct, these authors maintained that the overall perception
of quality was a disconfirmation of a customer’s expectation and
evaluation of a services delivered.

Saha and Theingi (2009) pointed out that the emergence of


low-cost airlines has raised concerns on how satisfied are the
customers with the services provided. Doyle and Wong (1998)
originate that successful companies have a differential advantage
in overall company reputation and communicate it as quality to

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their customers (Solomon, 1985). Often, they are able to


command premium prices (Tepeci, 1999). It is found that the
most important criterion for customers selecting a bank is
reputation (Boyd et al., 1994; Darby, 1999) while Rogerson (1983)
stated that good reputation could increase an organization's
sales, attract more customers, and reduce customer departures.

Maintaining quality are the main concerns of business


today. Providing quality is not a concern of manufacturing
companies alone. The delivery of high-quality service becomes a
marketing requirement among air carriers as a result of
competitive pressure (Ostrowski et al., 1993).

Chang and Keller (2002) argue that quality in airline service


is difficult to describe and measure due to its heterogeneity,
intangibility, and inseparability, and only the customer can truly
define service quality in the airline industry (Butler and Keller,
1992).Previous airline service studies are concentrated in
modelling the effect of perceived service quality at the aggregate
construct level, though examining the effects of individual
dimensions of service attributes has potentially great utility for
airline managers(Patterson & Spreng, 1997).The perceptions of
airline service quality are quite diverse and do not seem to fit any
single existing quality model such as the service quality (Haynes &
Percy, 1994).

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Methodology

Introduction

This topic included on how the research is carried out in


terms of research design, data collection methods, sampling
design, research instrument, and constructs measurement, data
processing and data analysis. Quantitative research method was
adopted in this study. Quantitative research is the numerical
representation and manipulation of observations for the purpose
of describing and explaining the phenomena. Exploratory
research is conducted to clarify ambiguous situations or discover
ideas that may be potential business opportunities.
Conversely, causal research is the seeking to identifying
cause-and-effect relationships among variables when the
research problem has already been narrowly defined.

Sampling Design

Sampling design is ultimate for researchers to collect


accurate information from the right people, right time and right
location for research questions. Sampling process comprises of
five steps that define target population, determine sampling
frame and sampling location, select appropriate sampling
technique, determine sampling size and execute sampling
process.

Target population

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It is defined as the entire group that researcher is interested


in and wishes to draw a conclusion. Business and or leisure
travellers who have been flying with Indigo will be the target
population. This particular population is chosen because they
have been making frequent interaction with airlines staffs and
have better understanding and evaluations on the SQ delivered
by airlines companies. The age range of target population is 18
years old and above, in which they possess sufficient spending
power on travelling. Hence, they are the best respondents to
collect information.

Sampling Frame and Sampling Location

Sampling frame is “actual set of units from which a sample


has been drawn”. In other words, all units that have been
included in the sampling frame have an equal chance to get
selected as respondents.

For sampling location, 200 questionnaires were randomly


distributed. Questionnaires were distributed to respondents in
Low Cost Carriers Terminal (LCCT) because there are large
amount of potential respondents and able to provide reliable
information about airlines’ SQ for a thorough representation
about the levels of passengers’ satisfaction.

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Sampling Element

The elements which have been selected in this study are the
travellers who fall in the age category of 18 years old and above
because they are able to make decision by themselves and
possess the ability to rate on the quality of service. The selected
respondents must heavily rely on the services provided by
airlines companies and at least travel once in a year. Travelers
below 18 years old are not entitled to take part .

Sampling Technique

Sampling techniques can be divided into two types which


are probability and nonprobability sampling. It is impossible for
researchers to collect data from all traveller’s, thus non-
probability technique is chosen in which the respondents are
selected from the population in some non-random manners.

Specifically, purposive sampling method is chosen whereby


researcher has selected the respondents who are relevant and
compatible to the purpose of study. purposive sampling does not
produce a sample to represent a large population but it can meet
the purpose of the study. It may be sufficient for understanding
human perceptions, needs, behaviours and contexts. Thus,

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purposive sampling method can be truly applied in this study. An


advantage of using purposive sampling method is that unsuitable
candidates will be eliminated and suitable candidates will be
remained in this study for better accuracy and reliability in
accordance to the purpose of study.

Sampling Size

The larger of the sample’ size, the lower the likely errors to
generalize the population of study. 200 questionnaires were
distributed to travellers. Due to time and resources constraints,
this number of sample size is appropriate in generalizing targeted
population.
However, there is 174 questionnaires has collected while
remaining of 26 questionnaire cannot be used due to
incompleteness which will lead to biasness. Besides, a total of 20
copies of pre-test sample have been distributed and carried out
before conducting formal survey to ensure the correctness and
quality of the survey questionnaire.

Conclusion

In conclusion, research methodologies were used in


collecting, analysing, and interpreting data. Questionnaire was
used to obtain more accurate information from the large group of
respondents. Target population, sampling frame and location,
sampling elements, sampling techniques and sample size were
discussed in the earlier part.

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The purpose of this study is to investigate the impact of the


in-flight service quality on passenger satisfaction. This study
entails that airline marketing managers has to develop various
policies to provide guaranteed quality services to passengers.
Airline service dimensions were found to have significant and
positive influences on airline image and passengers‟ satisfaction
intentions.

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