CHAPTER 1

INTRODUCTION
AVIATION
Aviation is the activities surrounding mechanical flight and the aircraft industry. Aircraft
includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well
as lighter-than-air craft such as hot air balloons and airships.
Aviation began in the 18th century with the development of the hot air balloon, 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 Boeing 747

AVIATION MANAGEMENT
Aviation management involves managing the workflow of airline, airport, or other businesses
pertaining to aviation or aerospace industry by carrying out the day-to-day operations of an
airport or an airline.

ETYMOLOGY
The word aviation was coined by the French writer and former naval officer Gabriel La
Landelle in 1863. He derived the term from the verb avier (an unsuccessful neologism for "to
fly"), itself derived from the Latin word avis ("bird") and the suffix -ation.
HISTORY
Early beginnings
There are early legends of human flight such as the stories of Icarus in Greek
myth, Jamshid and Shah Kay Kavus in Persian myth, and the flying automaton
of Archytas of Tarentum (428–347 BC). Later, somewhat more credible claims of short-
distance human flights appear, such as the winged flights of Abbas ibn Firnas (810–
887), Eilmer of Malmesbury (11th century), and the hot-air Passarola of Bartholomeu
Lourenco de Gusmao (1685–1724).

Lighter than air

LZ 129 Hindenburg at Lakehurst Naval Air Station, 1936

The modern age of aviation began with the first untethered human lighter-than-air flight on
November 21, 1783, of a hot air balloon designed by the Montgolfier brothers. The
practicality of balloons was limited because they could only travel downwind. It was
immediately recognized that a steerable, or dirigible, balloon was required. Jean-Pierre
Blanchard flew the first human-powered dirigible in 1784 and crossed the English Channel in
one in 1785.
Rigid airships became the first aircraft to transport passengers and cargo over great distances.
The best-known aircraft of this type were manufactured by the German Zeppelin company.
The most successful Zeppelin was the Graf Zeppelin. It flew over one million miles,
including an around-the-world flight in August 1929. However, the dominance of the
Zeppelins over the airplanes of that period, which had a range of only a few hundred miles,
was diminishing as airplane design advanced. The "Golden Age" of the airships ended on
May 6, 1937 when the Hindenburg caught fire, killing 36 people. The cause of the
Hindenburg accident was initially blamed on the use of hydrogen instead of helium as the lift
gas. An internal investigation by the manufacturer revealed that the coating used in the
material covering the frame was highly flammable and allowed static electricity to build up in
the airship. Changes to the coating formulation reduced the risk of further Hindenburg type
accidents. Although there have been periodic initiatives to revive their use, airships have seen
only niche application since that time.
Heavier than air
In 1799, Sir George Cayley set forth the concept of the modern airplane as a fixed-wing
flying machine with separate systems for lift, propulsion, and control. Early dirigible
developments included machine-powered propulsion (Henri Giffard, 1852), rigid frames
(David Schwarz, 1896) and improved speed and manoeuvrability (Alberto Santos-Dumont,
1901).

First powered and controlled flight by the Wright brothers, December 17, 1903.

There are many competing claims for the earliest powered, heavier-than-air flight. The first
recorded powered flight was carried out by Clement Ader on October 9, 1890 in his bat-
winged, fully self-propelled fixed-wing aircraft, the Ader Eole. It was reportedly the first
manned, powered, heavier-than-air flight of a significant distance (50 m (160 ft)) but
insignificant altitude from level ground. Seven years later, on 14 October 1897, Ader's Avion
III was tested without success in front of two officials from the French War ministry. The
report on the trials was not publicized until 1910, as they had been a military secret. In
November 1906, Ader claimed to have made a successful flight on 14 October 1897,
achieving an "uninterrupted flight" of around 300 metres (980 feet). Although widely
believed at the time, these claims were later discredited.
The Wright brothers made the first successful powered, controlled and sustained airplane
flight on December 17, 1903, a feat made possible by their invention of three-axis control.
Only a decade later, at the start of World War I, heavier-than-air powered aircraft had
become practical for reconnaissance, artillery spotting, and even attacks against ground
positions.
Aircraft began to transport people and cargo as designs grew larger and more reliable. The
Wright brothers took aloft the first passenger, Charles Furnas, one of their mechanics, on
May 14, 1908.
During the 1920s and 1930s great progress was made in the field of aviation, including the
first transatlantic flight of Alcock and Brown in 1919, Charles Lindbergh's solo transatlantic
flight in 1927, and Charles Kingsford Smith's transpacific flight the following year. One of
the most successful designs of this period was the Douglas DC-3, which became the
first airliner to be profitable carrying passengers exclusively, starting the modern era of
passenger airline service. By the beginning of World War II, many towns and cities had built
airports, and there were numerous qualified pilots available. The war brought many
innovations to aviation, including the first jet aircraft and the first liquid-fueled rockets.

The Cessna 172 is the most produced aircraft in history.

After World War II, especially in North America, there was a boom in general aviation, both
private and commercial, as thousands of pelts were released from military service and many
inexpensive war-surplus transport and training aircraft became available. Manufacturers such
as Cessna, Piper, and Beechcraft expanded production to provide light aircraft for the new
middle-class market.
By the 1950s, the development of civil jets grew, beginning with the de Havilland Comet,
though the first widely used passenger jet was the Boeing 707, because it was much more
economical than other aircraft at that time. At the same time, turboprop propulsion began to
appear for smaller commuter planes, making it possible to serve small-volume routes in a
much wider range of weather conditions.
Since the 1960s composite material airframes and quieter, more efficient engines have
become available, and Concorde provided supersonic passenger service for more than two
decades, but the most important lasting innovations have taken place in instrumentation and
control. The arrival of solid-state electronics, the Global Positioning System, satellite
communications, and increasingly small and powerful computers and LED displays, have
dramatically changed the cockpits of airliners and, increasingly, of smaller aircraft as well.
Pilots can navigate much more accurately and view terrain, obstructions, and other nearby
aircraft on a map or through synthetic vision, even at night or in low visibility.

NASA's Helios researches solar powered flight.

On June 21, 2004, SpaceShipOne became the first privately funded aircraft to make

a spaceflight, opening the possibility of an aviation market capable of leaving the Earth's
atmosphere. Meanwhile, flying prototypes of aircraft powered by alternative fuels, such
as ethanol, electricity, and even solar energy, are becoming more common.

OPERATIONS OF AIRCRAFT

Civil aviation
Civil aviation includes all non-military flying, both general aviation and scheduled air
transport.
Air transport
There are five major manufacturers of civil transport aircraft (in alphabetical order):
 Airbus, based in Europe
 Boeing, based in the United States
 Bombardier, based in Canada
 Embraer, based in Brazil
 United Aircraft Corporation, based in Russia
 Northwest Airlines Airbus A330-323

Boeing, Airbus, Ilyushin and Tupolev concentrate on wide-body and narrow-body

jet airliners, while Bombardier, Embraer and Sukhoi concentrate on regional airliners. Large
networks of specialized parts suppliers from around the world support these manufacturers,
who sometimes provide only the initial design and final assembly in their own plants. The
Chinese ACAC consortium will also soon enter the civil transport market with its Comac
ARJ21 regional jet.
Until the 1970s, most major airlines were flag carriers, sponsored by their governments and
heavily protected from competition. Since then, open skies agreements have resulted in
increased competition and choice for consumers, coupled with falling prices for airlines. The
combination of high fuel prices, low fares, high salaries, and crises such as the September 11,
2001 attacks and the SARS epidemic have driven many older airlines to government-bailouts,
bankruptcy or mergers. At the same time, low-cost carriers such
as Ryanair, Southwest and WestJet have flourished.

General aviation
General aviation includes all non-scheduled civil flying, both private and commercial.
General aviation may include business flights, air charter, private aviation, flight
training, ballooning, paragliding, parachuting, gliding, hang gliding, aerial photography, foot-
launched powered hang gliders, air ambulance, crop dusting, charter flights, traffic reporting,
police air patrols and forest fire fighting.
Each country regulates aviation differently, but general aviation usually falls under different
regulations depending on whether it is private or commercial and on the type of equipment
involved.
Many small aircraft manufacturers serve the general aviation market, with a focus on private
aviation and flight training.
 1940 Piper Cub
The most important recent developments for small aircraft (which form the bulk of the GA
fleet) have been the introduction of advanced avionics (including GPS) that were formerly
found only in large airliners, and the introduction of composite materials to make small
aircraft lighter and faster. Ultralight and homebuilt aircraft have also become increasingly
popular for recreational use, since in most countries that allow private aviation, they are much
less expensive and less heavily regulated than certified aircraft.

Military aviation
Simple balloons were used as surveillance aircraft as early as the 18th century. Over the
years, military aircraft have been built to meet ever increasing capability requirements.
Manufacturers of military aircraft compete for contracts to supply their government's arsenal.
Aircraft are selected based on factors like cost, performance, and the speed of production.

The Lockheed SR-71 remains unsurpassed in many areas of performance.

Types of military aviation
 Fighter aircraft's primary function is to destroy other aircraft. (e.g. Sopwith
Camel, A6M Zero, F-15, MiG-29, Su-27, and F-22).
 Ground attack aircraft are used against tactical earth-bound targets. (e.g. Junkers
Stuka, A-10, Il-2, J-22 Orao, AH-64 and Su-25).
 Bombers are generally used against more strategic targets, such as factories and oil
fields. (e.g. Zeppelin, Tu-95, Mirage IV, and B-52).
 Transport aircraft are used to transport hardware and personnel. (e.g. C-17
Globemaster III, C-130 Hercules and Mil Mi-26).
 Surveillance and reconnaissance aircraft obtain information about enemy forces.
(e.g. Rumpler Taube, Mosquito, U-2, OH-58 and MiG-25R).
 Unmanned aerial vehicles (UAVs) are used primarily as reconnaissance fixed-wing
aircraft, though many also carry payloads. Cargo aircraft are in development.
(e.g. RQ-7B Shadow, MQ-8 Fire Scout, and MQ-1C Gray Eagle).
 Missiles deliver warheads, normally explosives.

MAJOR REGULATING BODIES IN INDIAN AVIATION INDUSTRY

The Ministry of Civil Aviation (MoCA) of Government of India is responsible to formulate
policies and programs to develop and regulate civil aviation, and to implement the schemes
for expanding civil air transport. It also oversees airport facilities, air traffic services, and air
carriage of passengers and goods.
An Indian regulatory body for civil aviation named The Directorate General of Civil
Aviation (DGCA) is under the MoCA. This directorate investigates aviation accidents and
incidents.

IMPORTANT FACTOR DRIVING CIVIL AVIATION

The following are some most important factors that drive civil aviation −
 The Low-Cost Carriers (LCCs), modern airports
 Emphasis on regional connectivity
 Foreign Direct Investment (FDI) in domestic airlines
 Advanced information technology (IT) interventions
In May 2016, domestic air passenger traffic rose 21.63 per cent from 7.13 million to 8.67
million as compared to the traffic in May, 2015. In March 2016, total number of flights at all
Indian airports are recorded as 160,830; which is 14.9 per cent higher than the flights of
March 2015.
According to the reports of the Centre for Asia Pacific Aviation (CAPA), by FY2017, Indian
domestic air traffic is expected to cross 100 million passengers compared to 81 million
passengers in 2015. According to CRISIL’s reports, the airlines of India are expected to
record a collective profit of INR 8,100 crore (US$ 1.29 billion) in year 2016.

AIRCRAFT MANUFACTURING GIANTS

Hindustan Aeronautics Limited (HAL), a government-owned corporation based at
Bangalore, Karnataka, is an Indian giant that is governed by Ministry of Defence (MoD). It
is involved in manufacturing and assembly of aircraft, navigation, and allied communication
equipment. It also governs airports operations.
HAL works in collaboration with numerous international aerospace agencies such as Airbus,
Boeing, Sukhoi Aviation Corporation, Israel Aircraft Industries, RSK MiG, Rolls-Royce,
Dassault Aviation, Indian Aeronautical Development Agency, and the Indian Space
Research Organization (ISRO).

AIR SAFETY
Aviation safety means the state of an aviation system or organization in which risks
associated with aviation activities, related to, or in direct support of the operation of aircraft,
are reduced and controlled to an acceptable level. It encompasses the theory, practice,
investigation, and categorization of flight failures, and the prevention of such failures through
regulation, education, and training. It can also be applied in the context of campaigns that
inform the public as to the safety of air travel.

AVIATION ACCIDENTS AND INCIDENTS

A USAF Thunderbird pilot ejecting from his F-16 aircraft at an air show in 2003

An aviation accident is defined by the Convention on International Civil Aviation Annex 13
as an occurrence associated with the operation of an aircraft which takes place between the
time any person boards the aircraft with the intention of flight until such time as all such
persons have disembarked, in which a person is fatally or seriously injured, the aircraft
sustains damage or structural failure or the aircraft is missing or is completely inaccessible.
The first fatal aviation accident occurred in a Wright Model A aircraft at Fort Myer, Virginia,
USA, on September 17, 1908, resulting in injury to the pilot, Orville Wright, and death of the
passenger, Signal Corps Lieutenant Thomas Selfridge.
An aviation incident is defined as an occurrence, other than an accident, associated with the
operation of an aircraft that affects or could affect the safety of operations.
An accident in which the damage to the aircraft is such that it must be written off, or in which
the plane is destroyed, is called a hull loss accident.

AIR TRAFFIC CONTROL

Air traffic control towers at Amsterdam Airport

Air traffic control (ATC) involves communication with aircraft to help maintain separation –
that is, they ensure that aircraft are sufficiently far enough apart horizontally or vertically for
no risk of collision. Controllers may co-ordinate position reports provided by pilots, or in
high traffic areas (such as the United States) they may use radar to see aircraft positions.
There are generally four different types of ATC:
  centre controllers, who control aircraft enroute between airports
 control towers (including tower, ground control, clearance delivery, and other
services), which control aircraft within a small distance (typically 10–15 km
horizontal, and 1,000 m vertical) of an airport.
 oceanic controllers, who control aircraft over international waters between continents,
generally without radar service.
 terminal controllers, who control aircraft in a wider area (typically 50–80 km) around
busy airports.
ATC is especially important for aircraft flying under instrument flight rules (IFR), when they
may be in weather conditions that do not allow the pilots to see other aircraft. However, in
very high-traffic areas, especially near major airports, aircraft flying under visual flight
rules (VFR) are also required to follow instructions from ATC.
In addition to separation from other aircraft, ATC may provide weather advisories, terrain
separation, navigation assistance, and other services to pilots, depending on their workload.
ATC do not control all flights. The majority of VFR (Visual Flight Rules) flights in North
America are not required to contact ATC (unless they are passing through a busy terminal
area or using a major airport), and in many areas, such as northern Canada and low altitude in
northern Scotland, Air traffic control services are not available even for IFR flights at lower
altitudes.

ENVIRONMENTAL IMPACT
Like all activities involving combustion, operating powered aircraft (from airliners to hot air
balloons) releases soot and other pollutants into the atmosphere. Greenhouse gases such
as carbon dioxide (CO2) are also produced. In addition, there are environmental impacts
specific to aviation: for instance,

Water vapor contrails left by high-altitude jet airliners. These may contribute to cirrus

cloud formation
  Aircraft operating at high altitudes near the tropopause (mainly large jet airliners)
emit aerosols and leave contrails, both of which can increase cirrus cloud formation –
cloud cover may have increased by up to 0.2% since the birth of aviation. Clouds can
have both a cooling and warming effect. They reflect some of the sun's rays back into
space, but also block some of the heat radiated by Earth's surface. On average, both
thin natural cirrus clouds and contrails have a net warming effect.
 Aircraft operating at high altitudes near the tropopause can also release chemicals that
interact with greenhouse gases at those altitudes, particularly nitrogen compounds,
which interact with ozone, increasing ozone concentrations.
 Most light piston aircraft burn avgas, which contains tetraethyllead (TEL). Some
lower-compression piston engines can operate on unleaded mogas, and turbine
engines and diesel engines – neither of which require lead – are appearing on some
newer light aircraft.
Another environmental impact of aviation is noise pollution, mainly caused by aircraft taking
off and landing.
 CHAPTER 2
INDUSTRY PROFILE
AIRLINE

An airline is a company that provides air transport services for traveling passengers and
freight. Airlines utilize aircraft to supply these services and may form partnerships or
alliances with other airlines for codeshare agreements, in which they both offer and operate
the same flight. Generally, airline companies are recognized with an air operating certificate
or license issued by a governmental aviation body. Airlines may be scheduled or charter
operators.

The first airline was the German airship company DELAG, founded on 16 November 1909.
The four oldest non-airship airlines that still exist are the Netherlands' KLM (1919),
Colombia's Avianca (1919),[3] Australia's Qantas (1921) and the Czech Republic's Czech
Airlines (1923).

Airline ownership has seen a shift from mostly personal ownership until the 1930s to
government-ownership of major airlines from the 1940s to 1980s and back to large-scale
privatization following the mid-1980s. Since the 1980s, there has also been a trend of major
airline mergers and the formation of airline alliances. The largest alliances are Star Alliance,
SkyTeam and One world, and these three collectively accounted for more than 60% of global
commercial air traffic in 2015. Airline alliances coordinate their passenger service programs
(such as lounges and frequent-flyer programs), offer special interline tickets and often engage
in extensive code sharing (sometimes systemwide).

As of 2019, the largest airline by passengers carried and fleet size was the American Airlines
Group, while Delta Air Lines was the largest by revenue. Lufthansa Group was the largest by
number of employees, FedEx Express by freight tonne-kilometres, Turkish Airlines by
number of countries served and UPS Airlines by number of destinations served (though
United Airlines was the largest passenger airline by number of destinations served).

The airline industry encompasses a wide range of businesses, called airlines, which offer air
transport services for paying customers or business partners. These air transport services are
provided for both human travellers and cargo, and are most commonly offered via jets,
although some airlines also use helicopters.

Airlines may offer scheduled and/or chartered services and the airline industry forms a key
part of the wider travel industry, providing customers with the ability to purchase seats on
flights and travel to different parts of the world. The airline industry offers a variety of career
paths, including pilots, flight attendants and ground crew.

HISTORY

The first airlines

The world’s first airline was DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft. It was

founded on November 16, 1909, with government assistance, operated airships manufactured
by The Zeppelin Corporation. Its headquarters were in Frankfurt. On January 1, 1914, the
first fixed-wing scheduled airline was started from St. Petersburg, Florida, to Tampa, Florida,
operated by the St. Petersburg and Tampa Airboat Line. The four oldest non-dirigible airlines
that still exist are the Netherland’s KLM (1919), Colombia’s Avianca (1919), Australia’s
Qantas (1921), and the Czech Republic’s Airlines (1923).

Europe
 Beginnings

A 1919 advertisement for the Dutch airline KLM, founded on 7 October 1919, the
oldest running airline still operating under its original name

The earliest fixed wing airline in Europe was Aircraft Transport and Travel, formed by
George Holt Thomas in 1916; via a series of takeovers and mergers, this company is an
ancestor of modern-day British Airways. Using a fleet of former military Airco DH.4 a
biplane that had modified to carry passengers in the fuselage, it operated relief flight between
Folkestone and Ghent. On 15 July 1919, the company flew a proving flight across the English
Channel, despite a lack of support from the British government. Flown by Lt. H Shaw in an
Airco DH.9 between RAF Hendon and Paris -Le Bourget Airport, the flight took 2 hours and
30 minutes at £21 per passenger.
On 25 August 1919, the company used DH.16s to pioneer a regular service from Hounslow
Heath Aerodrome to Le Bourget, the first regular international service in the world. The
airline soon gained a reputation for reliability, despite problems with bad weather, and began
to attack European competition. In November 1919, it won the first British civil airmail
contract. Six Royal Air Force Airco DH.9A aircraft were lent to the company, to operate the
airmail service between Hawkinge and Cologne. In 1920, they were returned to the Royal Air
Force.
Other British competitors were quick to follow – Handley Page Transport established in 1919
and used the company’s converted wartime Type O/400 bombers with a capacity for 12
passengers, to run a London-Paris passenger service.
 The Handley Page W.8b was used by Handley Page Transport, an early British airline
established in 1919.

The first French airline was Societe des lignes Latecoere, later known as Aeropostale, which
started in late 1918 to Spain. The Societe Generale des Transports Aeriens was created in late
1919, by the Farman brothers and the Farman F.60 Goliath plane flew scheduled services
Toussus-le-Noble to kenley, near Croydon, England. Another early French airline was the
Compagnie des Messageries Aeriennes, established in 1919 by Louis-Charles Breguet,
offering a mail and freight service between Le Bourget Airport, Paris and Lesquin Airport,
Lille.

Junkers F.13 D-190 of Junkers Luftverkehr

The first German airline to use heavier than air aircraft was Deutsche Luft Reederei
established in 1971 which started operating in February 1919. In its first year, the D.L.R.
operated regularly scheduled flights on routes with a combined length of nearly 1000 miles.
By 1921 the D.L.R. network was more than 3000 km (1865 miles) long, and included
destinations in the Netherlands, Scandinavia and the Baltic Republics. Another important
German airline was Junkers Luftverkehr, which began operations in 1921. It was a division of
the aircraft manufacturer Junkers, which became a separate company in 1924. It operated
joint-venture airlines in Austria, Denmark, Estonia, Finland, Hungary, Latvia, Norway,
Poland, Sweden and Switzerland.
The Dutch airline KLM made its first flight in 1920, and is the oldest continuously operating
airline in the world. Established by aviator Albert Plesman, it was immediately awarded a
"Royal" predicate from Queen Wilhelmina. Its first flight was from Croydon
Airport, London to Amsterdam, using a leased Aircraft Transport and Travel DH-16, and
carrying two British journalists and a number of newspapers. In 1921, KLM started
scheduled services.
In Finland, the charter establishing Aero O/Y (now Finnair) was signed in the city
of Helsinki on September 12, 1923. Junkers F.13 D-335 became the first aircraft of the
company, when Aero took delivery of it on March 14, 1924. The first flight was between
Helsinki and Tallinn, capital of Estonia, and it took place on March 20, 1924, one week later.
In the Soviet Union, the Chief Administration of the Civil Air Fleet was established in 1921.
One of its first acts was to help found Deutsch-Russische Luftverkehrs A.G. (Deruluft), a
German-Russian joint venture to provide air transport from Russia to the West. Domestic air
service began around the same time, when Dobrolyot started operations on 15 July 1923
between Moscow and Nizhni Novgorod. Since 1932 all operations had been carried under the
name Aeroflot.
Early European airlines tended to favor comfort – the passenger cabins were often spacious
with luxurious interiors – over speed and efficiency. The relatively basic navigational
capabilities of pilots at the time also meant that delays due to the weather were commonplace.

 Rationalization
 The Imperial Airways Empire Terminal, Victoria, London. Trains ran from here to flying
boats in Southampton, and to Croydon Airport.

By the early 1920s, small airlines were struggling to compete, and there was a movement
towards increased rationalization and consolidation. In 1924, Imperial Airways was formed
from the merger of Instone Air Line Company, British Marine Air Navigation, Daimler
Airway and Handley Page Transport, to allow British airlines to compete with stiff
competition from French and German airlines that were enjoying heavy government
subsidies. The airline was a pioneer in surveying and opening up air routes across the world
to serve far-flung parts of the British Empire and to enhance trade and integration.
The first new airliner ordered by Imperial Airways, was the Handley Page W8f City of
Washington, delivered on 3 November 1924. In the first year of operation the company
carried 11,395 passengers and 212,380 letters. In April 1925, the film The Lost
World became the first film to be screened for passengers on a scheduled airline flight when
it was shown on the London-Paris route.
Two French airlines also merged to form Air Union on 1 January 1923. This later merged
with four other French airlines to become Air France, the country's flagship carrier to this
day, on 17 May 1933.
Germany's Deutsche Luft Hansa was created in 1926 by merger of two airlines, one of
them Junkers Luftverkehr. Luft Hansa, due to the Junkers heritage and unlike most other
airlines at the time, became a major investor in airlines outside of Europe, providing capital
to Varig and Avianca. German airliners built by Junkers, Dornier, and Fokker were among
the most advanced in the world at the time.

 Expansion
In 1926, Alan Cobham surveyed a flight route from the UK to Cape Town, South Africa,
following this up with another proving flight to Melbourne, Australia. Other routes to British
India and the Far East were also charted and demonstrated at this time. Regular services
to Cairo and Basra began in 1927 and were extended to Karachi in 1929. The London-
Australia service was inaugurated in 1932 with the Handley Page HP 42 airliners. Further
services were opened up to Calcutta, Rangoon, Singapore, Brisbane and Hong
Kong passengers departed London on 14 March 1936 following the establishment of a branch
from Penang to Hong Kong.

April 1935 map showing Imperial Airways' routes from the UK to Australia and South Africa

Imperial's aircraft were small, most seating fewer than twenty passengers, and catered for the
rich. Only about 50,000 passengers used Imperial Airways in the 1930s. Most passengers on
intercontinental routes or on services within and between British colonies were men doing
colonial administration, business or research.
Like Imperial Airways, Air France and KLM's early growth depended heavily on the needs to
service links with far-flung colonial possessions (North Africa and Indochina for the French
and the East Indies for the Dutch). France began an air mail service to Morocco in 1919 that
was bought out in 1927, renamed Aéropostale, and injected with capital to become a major
international carrier. In 1933, Aéropostale went bankrupt, was nationalized and merged
into Air France.
Although Germany lacked colonies, it also began expanding its services globally. In 1931,
the airship Graf Zeppelin began offering regular scheduled passenger service between
Germany and South America, usually every two weeks, which continued until 1937. In 1936,
the airship Hindenburg entered passenger service and successfully crossed the Atlantic 36
times before crashing at Lakehurst, New Jersey, on May 6, 1937. In 1938, a weekly air
service from Berlin to Kabul, Afghanistan, started operating.
From February 1934 until World War II began in 1939 Deutsche Lufthansa operated an
airmail service from Stuttgart, Germany via Spain, the Canary Islands and West Africa
to Natal in Brazil. This was the first time an airline flew across an ocean.
By the end of the 1930s Aeroflot had become the world's largest airline, employing more
than 4,000 pilots and 60,000 other service personnel and operating around 3,000 aircraft (of
which 75% were considered obsolete by its own standards). During the Soviet era Aeroflot
was synonymous with Russian civil aviation, as it was the only air carrier. It became the first
airline in the world to operate sustained regular jet services on 15 September 1956 with
the Tupolev Tu-104.
  Deregulation
Deregulation of the European Union airspace in the early 1990s has had substantial effect on
the structure of the industry there. The shift towards 'budget' airlines on shorter routes has
been significant. Airlines such as EasyJet and Ryanair have often grown at the expense of the
traditional national airlines.
There has also been a trend for these national airlines themselves to be privatized such as has
occurred for Aer Lingus and British Airways. Other national airlines, including
Italy's Alitalia, have suffered – particularly with the rapid increase of oil prices in early 2008.
Finnair, the largest airline of Finland, had no fatal or hull-loss accidents since 1963, and is
recognized for its safety.

United States
 Early development

TWA Douglas DC-3 in 1940. The DC-3, often regarded as one of the most influential aircraft
in the history of commercial aviation, revolutionized air travel.

Tony Jannus conducted the United States' first scheduled commercial airline flight on 1
January 1914 for the St. Petersburg-Tampa Airboat Line. The 23-minute flight travelled
between St. Petersburg, Florida and Tampa, Florida, passing some 50 feet (15 m) above
Tampa Bay in Jannus Benoist XIV wood and muslin biplane flying boat. His passenger was a
former mayor of St. Petersburg, who paid $400 for the privilege of sitting on a wooden bench
in the open cockpit. The Airboat line operated for about four months, carrying more than
1,200 passengers who paid $5 each. Chalk's International Airlines began service between
Miami and Bimini in the Bahamas in February 1919. Based in Ft. Lauderdale, Chalk's
claimed to be the oldest continuously operating airline in the United States until its closure in
2008.
Following World War I, the United States found itself swamped with aviators. Many decided
to take their war-surplus aircraft on barnstorming campaigns, performing aerobatic
maneuvers to woo crowds. In 1918, the United States Postal Service won the financial
backing of Congress to begin experimenting with air mail service, initially using Curtiss
Jenny aircraft that had been procured by the United States Army Air Service. Private
operators were the first to fly the mail but due to numerous accidents the US Army was
tasked with mail delivery. During the Army's involvement they proved to be too unreliable
and lost their air mail duties. By the mid-1920s, the Postal Service had developed its own air
mail network, based on a transcontinental backbone between New York City and San
Francisco. To supplement this service, they offered twelve contracts for spur routes to
independent bidders. Some of the carriers that won these routes would, through time and
mergers, evolve into Pan Am, Delta Air Lines, Braniff Airways, American Airlines, United
Airlines (originally a division of Boeing), Trans World Airlines, Northwest Airlines,
and Eastern Air Lines.
Service during the early 1920s was sporadic: most airlines at the time were focused
on carrying bags of mail. In 1925, however, the Ford Motor Company bought out the Stout
Aircraft Company and began construction of the all-metal Ford Trimotor, which became the
first successful American airliner. With a 12-passenger capacity, the Trimotor made
passenger service potentially profitable. Air service was seen as a supplement to rail service
in the American transportation network.
At the same time, Juan Trippe began a crusade to create an air network that would link
America to the world, and he achieved this goal through his airline, Pan Am, with a fleet of
flying boats that linked Los Angeles to Shanghai and Boston to London. Pan Am and
Northwest Airways (which began flights to Canada in the 1920s) were the only U.S. airlines
to go international before the 1940s.
With the introduction of the Boeing 247 and Douglas DC-3 in the 1930s, the U.S. airline
industry was generally profitable, even during the Great Depression. This trend continued
until the beginning of World War II.

 Since 1945
World War II, like World War I, brought new life to the airline industry. Many airlines in the
Allied countries were flush from lease contracts to the military, and foresaw a future
explosive demand for civil air transport, for both passengers and cargo. They were eager to
invest in the newly emerging flagships of air travel such as the Boeing Stratocruiser,
Lockheed Constellation, and Douglas DC-6. Most of these new aircraft were based on
American bombers such as the B-29, which had spearheaded research into new technologies
such as pressurization. Most offered increased efficiency from both added speed and greater
payload.
Boeing 377 of American Export Airlines, the first airline to offer landplane flights across the
North Atlantic in October 1945.

In the 1950s, the De Havilland Comet, Boeing 707, Douglas DC-8, and Sud Aviation

Caravelle became the first flagships of the Jet Age in the West, while the Eastern bloc
had Tupolev Tu-104 and Tupolev Tu-124 in the fleets of state-owned carriers such as
Czechoslovak CSA, Soviet Aeroflot and East-German Interflug. The Vickers
Viscount and Lockheed L-188 Electra inaugurated turboprop transport.
On 4 October 1958, British Overseas Airways Corporation started transatlantic
flights between London Heathrow and New York Idlewild with a Comet 4, and Pan
Am followed on 26 October with a Boeing 707 service between New York and Paris.
The next big boost for the airlines would come in the 1970s, when the Boeing
747, McDonnell Douglas DC-10, and Lockheed L-1011 inaugurated widebody ("jumbo jet")
service, which is still the standard in international travel. The Tupolev Tu-144 and its
Western counterpart, Concorde, made supersonic travel a reality. Concorde first flew in 1969
and operated through 2003. In 1972, Airbus began producing Europe's most commercially
successful line of airliners to date. The added efficiencies for these aircraft were often not in
speed, but in passenger capacity, payload, and range. Airbus also features modern electronic
cockpits that were common across their aircraft to enable pilots to fly multiple models with
minimal cross-training.

 Deregulation
The 1978 U.S. airline industry deregulation lowered federally controlled barriers for new
airlines just as a downturn in the nation's economy occurred. New start-ups entered
during the downturn, during which time they found aircraft and funding, contracted
hangar and maintenance services, trained new employees, and recruited laid-off staff
from other airlines.
 Pan Am Boeing 747 Clipper Neptune's Car in 1985. The deregulation of the American
airline industry increased the financial troubles of the airline which ultimately filed for
bankruptcy in December 1991.

Major airlines dominated their routes through aggressive pricing and additional capacity
offerings, often swamping new start-ups. In the place of high barriers to entry imposed by
regulation, the major airlines implemented an equally high barrier called loss
leader pricing. In this strategy an already established and dominant airline stomps out its
competition by lowering airfares on specific routes, below the cost of operating on it, choking
out any chance a start-up airline may have. The industry side effect is an overall drop in
revenue and service quality. Since deregulation in 1978 the average domestic ticket price has
dropped by 40%. So has airline employee pay. By incurring massive losses, the airlines of the
USA now rely upon a scourge of cyclical Chapter 11 bankruptcy proceedings to continue
doing business. America West Airlines (which has since merged with US Airways) remained
a significant survivor from this new entrant era, as dozens, even hundreds, have gone under.
In many ways, the biggest winner in the deregulated environment was the air passenger.
Although not exclusively attributable to deregulation, indeed the U.S. witnessed an explosive
growth in demand for air travel. Many millions who had never or rarely flown before became
regular fliers, even joining frequent flyer loyalty programs and receiving free flights and
other benefits from their flying. New services and higher frequencies meant that business
fliers could fly to another city, do business, and return the same day, from almost any point in
the country. Air travel's advantages put long-distance intercity railroad travel and bus lines
under pressure, with most of the latter having withered away, whilst the former is still
protected under nationalization through the continuing existence of Amtrak.
By the 1980s, almost half of the total flying in the world took place in the U.S., and today the
domestic industry operates over 10,000 daily departures nationwide.
Toward the end of the century, a new style of low-cost airline emerged, offering a no-frills
product at a lower price. Southwest Airlines, JetBlue, AirTran Airways, Skybus Airlines and
other low-cost carriers began to represent a serious challenge to the so-called "legacy
airlines", as did their low-cost counterparts in many other countries. Their commercial
viability represented a serious competitive threat to the legacy carriers. However, of
these, ATA and Skybus have since ceased operations.
Increasingly since 1978, US airlines have been reincorporated and spun off by newly created
and internally led management companies, and thus becoming nothing more than operating
units and subsidiaries with limited financially decisive control. Among some of these holding
companies and parent companies which are relatively well known, are the UAL Corporation,
along with the AMR Corporation, among a long list of airline holding companies sometime
recognized worldwide. Less recognized are the private equity firms which often seize
managerial, financial, and board of directors control of distressed airline companies by
temporarily investing large sums of capital in air carriers, to rescheme an airlines assets into a
profitable organization or liquidating an air carrier of their profitable and worthwhile routes
and business operations.
Thus, the last 50 years of the airline industry have varied from reasonably profitable, to
devastatingly depressed. As the first major market to deregulate the industry in 1978, U.S.
airlines have experienced more turbulence than almost any other country or region. In fact, no
U.S. legacy carrier survived bankruptcy-free. Among the outspoken critics of deregulation,
former CEO of American Airlines, Robert Crandall has publicly stated: "Chapter 11
bankruptcy protection filing shows airline industry deregulation was a mistake."

 Bailout
Congress passed the Air Transportation Safety and System Stabilization Act (P.L. 107-42) in
response to a severe liquidity crisis facing the already-troubled airline industry in the
aftermath of the September 11th terrorist attacks. Through the ATSB Congress sought to
provide cash infusions to carriers for both the cost of the four-day federal shutdown of the
airlines and the incremental losses incurred through December 31, 2001, as a result of the
terrorist attacks. This resulted in the first government bailout of the 21st century. Between
2000 and 2005 US airlines lost $30 billion with wage cuts of over $15 billion and 100,000
employees laid off.
In recognition of the essential national economic role of a healthy aviation system, Congress
authorized partial compensation of up to $5 billion in cash subject to review by the U.S.
Department of Transportation and up to $10 billion in loan guarantees subject to review by a
newly created Air Transportation Stabilization Board (ATSB). The applications to DOT for
reimbursements were subjected to rigorous multi-year reviews not only by DOT program
personnel but also by the Government Accountability Office and the DOT Inspector General.
Ultimately, the federal government provided $4.6 billion in one-time, subject-to-income-tax
cash payments to 427 U.S. air carriers, with no provision for repayment, essentially a gift
from the taxpayers. (Passenger carriers operating scheduled service received approximately
$4 billion, subject to tax). In addition, the ATSB approved loan guarantees to six airlines
totalling approximately $1.6 billion. Data from the U.S. Treasury Department show that the
government recouped the $1.6 billion and a profit of $339 million from the fees, interest and
purchase of discounted airline stock associated with loan guarantees.
The three largest major carriers and Southwest Airlines control 70% of the U.S. passenger
market.

Asia
Although Philippine Airlines (PAL) was officially founded on February 26, 1941, its license
to operate as an airliner was derived from merged Philippine Aerial Taxi Company (PATCO)
established by mining magnate Emmanuel N. Bachrach on December 3, 1930, making it
Asia's oldest scheduled carrier still in operation. Commercial air service commenced three
weeks later from Manila to Baguio, making it Asia's first airline route. Bachrach's death in
1937 paved the way for its eventual merger with Philippine Airlines in March 1941 and made
it Asia's oldest airline. It is also the oldest airline in Asia still operating under its current
name. Bachrach's majority share in PATCO was bought by beer magnate Andres R.

1935 Timetable of Tata Airlines, founded in 1932

Soriano in 1939 upon the advice of General Douglas MacArthur and later merged with newly
formed Philippine Airlines with PAL as the surviving entity. Soriano has controlling interest
in both airlines before the merger. PAL restarted service on March 15, 1941, with a
single Beech Model 18 NPC-54 aircraft, which started its daily services
between Manila (from Nielson Field) and Baguio, later to expand with larger aircraft such as
the DC-3 and Vickers Viscount.
Cathay Pacific was one of the first airlines to be launched among the other Asian countries in
1946 along with Asiana Airlines, which later joined in 1988. The license to operate as an
airliner was granted by the federal government body after reviewing the necessity at the
national assembly. The Hanjin occupies the largest ownership of Korean Air as well as few
low-budget airlines as of now. Korean Air is one of the four founders of SkyTeam, which
was established in 2000. Asiana Airlines joined Star Alliance in 2003. Korean Air and Asiana
Airlines comprise one of the largest combined airline miles and number of passengers served
at the regional market of Asian airline industry
India was also one of the first countries to embrace civil aviation. One of the first Asian
airline companies was Air India, which was founded as Tata Airlines in 1932, a division of
Tata Sons Ltd. (now Tata Group). The airline was founded by India's leading
industrialist, JRD Tata. On October 15, 1932, J. R. D. Tata himself flew a single engine De
Havilland Puss Moth carrying air mail (postal mail of Imperial Airways)
from Karachi to Bombay via Ahmedabad. The aircraft continued to Madras via Bellary
piloted by Royal Air Force pilot Nevill Vintcent. Tata Airlines was also one of the world's
first major airlines which began its operations without any support from the Government.
With the outbreak of World War II, the airline presence in Asia came to a relative halt, with
many new flag carriers donating their aircraft for military aid and other uses. Following the
end of the war in 1945, regular commercial service was restored in India and Tata Airlines
became a public limited company on July 29, 1946, under the name Air India. After
the independence of India, 49% of the airline was acquired by the Government of India. In
return, the airline was granted status to operate international services from India as the
designated flag carrier under the name Air India International.
On July 31, 1946, a chartered Philippine Airlines (PAL) DC-4 ferried 40 American
servicemen to Oakland, California, from Nielson Airport in Makati City with stops
in Guam, Wake Island, Johnston Atoll and Honolulu, Hawaii, making PAL the first Asian
airline to cross the Pacific Ocean. A regular service between Manila and San Francisco was
started in December. It was during this year that the airline was designated as the flag carrier
of Philippines.
During the era of decolonization, newly born Asian countries started to embrace air transport.
Among the first Asian carriers during the era were Cathay Pacific of Hong Kong (founded in
September 1946), Orient Airways (later Pakistan International Airlines; founded in October
1946), Air Ceylon (later SriLankan Airlines; founded in 1947), Malayan Airways Limited in
1947 (later Singapore and Malaysia Airlines), El Al in Israel in 1948, Garuda Indonesia in
1949, Japan Airlines in 1951, Thai Airways in 1960, and Korean National Airlines in 1947.
Singapore Airlines had won quality awards.

Latin America and Caribbean

Among the first countries to have regular airlines in Latin America and the Caribbean were
Bolivia with Lloyd Aereo Boliviano, Cuba with Cubana de Aviacion, Colombia with Avianca
(the first airline established in the Americas), Argentina with Aerolineas Argentinas, Chile
with LAN Chile (today LATAM Airlines), Brazil with Varig, Dominican Republic with
Dominicana de Aviacion, Mexico with Mexicana de Aviacion, Trinidad and Tobago with
BWIA West Indies Airways (today Caribbean Airlines), Venezuela with Aeropostal, Puerto
Rico with Puertorriquena; and TACA based in El Salvador and representing several airlines
of Central America (Costa Rica, Guatemala, Honduras and Nicaragua). All the previous
airlines started regular operations well before World War II. Puerto Rican commercial
airlines such as Prinair, Oceanair, Fina Air and Vieques Air Link came much after the second
world war, as did several others from other countries like Mexico's Interjet and Volaris,
Venezuela's Aserca Airlines and others.
TAM Airlines is the largest airline in Latin America in terms of number of annual passengers
flown

The air travel market has evolved rapidly over recent years in Latin America. Some industry
estimates indicate that over 2,000 new aircraft will begin service over the next five years in
this region.
These airlines serve domestic flights within their countries, as well as connections within
Latin America and also overseas flights to North America, Europe, Australia, and Asia.
Only two airlines – Avianca and LATAM Airlines – have international subsidiaries and cover
many destinations within the Americas as well as major hubs in other continents. LATAM
with Chile as the central operation along
with Peru, Ecuador, Colombia, Brazil and Argentina and formerly with some operations in
the Dominican Republic. The Avianca group has its main operation in Colombia based
around the hub in Bogota Colombia, as well as subsidiaries in various Latin American
countries with hubs in San Salvador, El Salvador, as well as Lima, Peru, with a smaller
operation in Ecuador.

DIFFERENT TYPES OF AIRLINES

Airlines are often grouped into different categories and precise definitions can vary in
different parts of the world. However, broadly speaking, airlines can be separated into
Airlines are often grouped into different categories and precise definitions can vary in three
main types, which are as follows:

International Airlines

International airlines are a group of the largest, most high-profile and most successful
airlines. They make billions in revenue each year and operate large passenger jets. These
airlines also tend to focus their efforts on offering global services, carrying passengers and
cargo over large distances.

Additionally, international airlines usually employ tens of thousands of people, often have
multiple hubs and will provide access to hundreds of destinations. Examples would include
Delta Air Lines and American Airlines.
National Airlines

National airlines represent the next step down from the largest international airlines. They
will typically offer both medium-sized and large-sized jets and will often focus on offering
services to areas within their home country, but many will offer access to international
destinations too.

A national airline is still likely to employ thousands of people, but will have a smaller fleet
size. In many cases, the destinations they offer flights to are influenced by seasonal
fluctuations in demand.

Regional Airlines

Finally, as the name suggests, regional airlines are the smallest of the three main types and
focus on offering services within specific regions. In many cases, they provide passenger
services to parts of the world with lower levels of demand and where services are not offered
by either national or international airlines.

Some regional airlines also function as an affiliate for a national or international airline.
Within this context, they will typically provide connection flights from the region they cover
to the airline’s main hubs.

7 BIGGEST AIRLINE COMPANIES IN THE WORLD

When it comes to identifying the largest airlines in the world, one of the most widely utilised
metrics is revenue passenger-kilometres (RPKs) and this information is published each year by
the International Air Transport Association (IATA). As the name indicates, this metric is the sum
total of the distances flown by each of the airline’s paying passengers over the course of a year.
With this in mind, the seven biggest airline companies in the world today are:
–

1. AMERICAN AIRLINES

2. DELTA AIR LINES

3. UNITED AIRLINES

4. EMIRATES

5. SOUTHWEST AIRLINES

6. CHINA SOUTHEST AIRLINES

7. RYANAIR
DOMESTIC FLIGHT
A domestic flight is a form of commercial flight within civil aviation where the departure and
the arrival take place in the same country.
Airports serving domestic flights only are known as domestic airports.
Domestic flights are generally cheaper and shorter than most international flights. Some
international flights may be cheaper than domestic ones due to the short distance between the
pair of cities in different countries, and also because domestic flights might, in smaller
countries, mainly be used by high paying business travellers, while leisure travellers use road
or rail domestically.
Domestic flights are the only sector of aviation not exhibiting a global long term growth trend
due to many smaller countries increasingly replacing short domestic routes with high speed
rail; that said, most of the busiest air routes in the world are domestic flights.
Some smaller countries, like Singapore, have no scheduled domestic flights. Medium-sized
countries like the Netherlands have very few domestic flights; most of them are merely a leg
between small regional airports such as Groningen Airport Eelde, Maastricht Aachen
Airport and Rotterdam The Hague Airport to pick up passengers from various parts of the
country before proceeding to international destinations. In June 2013, Dutch MP Liesbeth van
Tongeren (GreenLeft, previously Greenpeace Netherlands director) proposed to prohibit
domestic flights in the Netherlands with the argument that they are needlessly inefficient,
polluting and expensive, but Environment Secretary Wilma Mansveld (Labour Party) said
such a ban would violate EU regulations that allow airlines to fly domestically.

LIST OF AIRLINES OF INDIA

This is a type of airlines in India, operating in the area of civil aviation in India.

 Scheduled airlines

 Regional airlines

 Charter airlines

 Cargo airlines
Scheduled airlines

A scheduled flight means that tickets to this flight are sold via various sales channels around
the world. Scheduled flights may have connection flights. Charter flights, on the other hand,

are bought from the airline by a tour operator.

Airline Image IATA ICAO Callsign Commenced Headquarters Type

Air India AI AIC AIRINDI 1946 Delhi Full

A service

Vistara UK VTI VISTARA 2015 Gurgaon Full

service

SpiceJet SG SEJ SPICEJET 2005 Gurgaon Low

cost

Air India IX AXB EXPRESS 2005 Kochi Low

Express INDIA cost

IndiGo 6E IGO IFLY 2006 Gurgaon Low

cost

GoAir G8 GOW GOAIR 2005 Mumbai Low

cost

AirAsia I5 IAD RED 2014 Bengaluru Low

India KNIGHT cost
Regional Airlines

Regional airlines are those that connect smaller city pairs. True to its name a regional has a
specific geographic focus. Yet the challenge with regional flying is that certain airports
sometimes see footfalls of as little as 7,000 passengers. And the nature of this volume does
not bode well for profitability.

Airline Image IATA ICAO Callsign Commenced Headquarter

s
Alliance Air
9I LLR ALLIED 1996 Delhi

Air Deccan
DECCA
DN DKN 2017 Ahmedabad
N
Air
Heritage 4H — — 2019 Dehradun

FlyBig
S9 — — 2021 Gurugram

Star Air
OG SDG HISTAR 2019 Bengaluru

TruJet
2T TRJ TRUJET 2015 Hyderabad

Zoom Air
ZO ZOM ZOOM 2017 Delhi

Charter airlines

Air charter is the business of renting an entire aircraft (i.e., chartering) as opposed to
individual aircraft seats (i.e., purchasing a ticket through a traditional airline).

Airline Image IATA ICAO Callsign Commenced Headquarters

Baron
— — — 2011 Mumbai
Aviation

Chhattisgar — — — 2012 Raipur

h Air Link

Club One
— — — 2005 Delhi
Air

Confident
— — — 2005 Bangalore
Airlines

Deccan
Charters
DN DKN DECCAN 1997 Bangalore

Dove
Airlines
— — — 2007 Kolkata

Fly Divine — — — 2017 Indore

Fly Hornbill — — — 2016 Guwahati

Ghodawat
— — — 2014 Kolhapur
Aviation

Global
Vectra — — — 1997 Mumbai
Helicorp

Jagson — JGN JAGSON 2005 Delhi

Airlines
 Jal Hans — — — 2010 Port Blair

PAWAN
Pawan Hans — PHE 1985 Delhi
HANS

Pinnacle Air — — — 2004 Delhi

Safe fly
Aviation
— — — 2010 New Delhi

Spirit Air — — — 2012 Bangalore

Supreme
Airlines
— — — 1983 Jaipur

TajAir — — — 1993 Mumbai

Taneja
Aerospace
and — — — 1997 Pune
Aviation
Ltd
Titan — — — 2010 Bangalore
Aviation
 Ventura
AirConnect
— — — 2011 Surat

Hubli
VRL Air — — — 2008

Cargo Airlines

Cargo airlines (or airfreight carriers, and derivatives of these names) are airlines mainly
dedicated to the transport of cargo by air. Some cargo airlines are divisions or subsidiaries of
larger passenger airlines.

ICA Commence
Airline Image IATA Callsign Headquarters
O d

Blue Dart BLUE

BZ BDA 1995 Chennai
Aviation DART

SpiceXpres
SG SEJ SPICEJET 2018 Delhi
s

Bangalore
Quikjet QUIK
QO FQA 2016
Airlines LIFT
 CHAPTER 3
COMPANY PROFILE

INDIGO AIRLINES
 INDIGO. Indian Ocean Geochemistry. Slogan/Tagline: Go IndiGo

Our mission
Our passionate and creative team will innovatively provide small project facilitation, business
writing and grant writing to clients expecting high quality results, reliability and excellent
customer service.

Our vision
Our vision is to be a successful, world-standard company, working closely with business and
organisations to improve their results. We will achieve this by understanding client’s needs
and providing quality products and services that exceed their expectations. A strong
community commitment is incorporated into our work whenever possible. We look forward
to the journey with passion.

Our values
 A commitment to high quality customer service.
 Clear and open communication to ensure the best results.
 Reliability and integrity as a strong foundation for building trust.
 Efficient service and quality products.
 Innovative thinking.
 A sustainable environment to be enjoyed by future generations.
 The importance of enjoying life and work.

IATA 6E

ICAO IGO

Callsign IFLY
Founded 2005; 16 years ago,

Commenced operations 4 August 2006

Hubs  Indira Gandhi International Airport (Delhi)

(Primary Hub)

 Kempegowda International Airport

(Bengaluru)

 Chhatrapati Shivaji Maharaj International

Airport (Mumbai)

 Netaji Subhas Chandra Bose International

Airport (Kolkata)

 Chennai International Airport (Chennai)

 Rajiv Gandhi International Airport

(Hyderabad)

 Sardar Vallabhbhai Patel International Airport

(Ahmedabad)

Fleet size 287

Destinations 87

Parent company InterGlobe Aviation Ltd

Traded as BSE: 539448

NSE: INDIGO

Headquarters Gurugram, Haryana, India

Key people Rakesh Gangwal (co-founder)

Rahul Bhatia (co-founder)
M. Damodaran (Chairman)
Rono Dutta (CEO)
Wolfgang Prock-Schauer (COO)

Revenue Increase ₹37,291.51 crore (US$5.2 billion) (2020)

Operating income Decrease ₹−255.67 crore (US$−36 million) (2020)

Net income Decrease ₹−233.68 crore (US$−33 million) (2020)

Total assets Increase ₹42,101.08 crore (US$5.9 billion) (2020)

 Total equity Decrease ₹5,877.94 crore (US$820 million) (2020)

Employees 23,531 (March 2019)

Website goindigo.in

IndiGo airline was founded as a private company by Rahul Bhatia of InterGlobe Enterprises
and Rakesh Gangwal in 2006. It took delivery of its first aircraft in July 2006 and
commenced operations a month later. The airline became the largest Indian carrier by
passenger market share in 2012. The company went public in November 2015.
IndiGo is India’s largest passenger airline with a market share of 53.9% as of December,
2020. IndiGo’s headquartered is in Gurugram, Haryana, India. They primarily operate in
India’s domestic air travel market as a low-cost carrier with focus on our three pillars –
offering low fares, being on-time and delivering a courteous and hassle-free experience.
IndiGo has become synonymous with being on-time. It has its primary hub at IGI
Airport, Delhi.
Since their inception is in August 2006, they have grown from a carrier with one plane to a
fleet of 281 aircraft today. A uniform fleet for each type of operation, high operational
reliability and an award-winning service made them one of the most reliable airlines in the
world.
IndiGo has a total count of 90 with 66 domestic destinations and 24 International. This
includes four destinations: Leh, Agra, Kurnool and Durgapur which are now open for sale.
They include, Athens (ATH, Budapest (BUD), Brussels (BRU), Tel Aviv (TLV), Malta
(MLA), Paris (CDG), Dublin (DUB), Copenhagen (CPH), Prague (PRG), Vienna (VIE),
Zurich (ZRH), Amsterdam (AMS), London Gatwick (LGW) and London Heathrow (LHR).

The Preferred Airline

IndiGo is not only the most efficient low fare operator domestically but is also comparable
with global low-cost airlines. We are constantly enhancing our engagement with our
passengers to augment their travel experience. From multichannel direct sales (including
online flight booking, call centers and airport counters), to online flight status checking, an
exclusive IndiGo app for Android, we have transformed air travel in India. Today, we are
India’s most preferred airline. At IndiGo, low fares come with high quality.

Great Place to Work

Being courteous and hassle free starts with being a hassle-free place to work. A highly
engaged and motivated workforce leads to higher levels of customer service. Our state-of-
the-art ‘ifly’ facility is designed to deliver a real-time training experience to all our new
recruits. This training facility is considered to be one the best aviation training facilities in
India. With our people-friendly culture at the heart of all we do, we continuously help the
company staff find work-life balance. Ten years in a row, IndiGo continues to be amongst the
best organizations to work for in India and has been named Aon’s Best Employer, 2017

IndiGo Reach
Our Corporate Social Responsibility (CSR) initiative IndiGo Reach focuses on three broad
themes: Children and Education, Women Empowerment and Environment. We work towards
upliftment of communities not just around us but also far-flung areas in the country. After all,
India’s holistic progress is rooted in the collective aspirations of its people.

Facts and Figures

10 consecutive years of Profitable operations
Market share of 53.9% as of December, 2020.
Fleet of 281 aircraft including 120 new generation A320 NEOs, 106 A320 CEOs, 25 ATRs
and 30 A321 NEO.
Recognized as ‘Great Place to Work for in India’ for 8 years in a row (2008- 2015)
Named as Aon’s Best Employer for the year 2016 and 2017

HISTORY

IndiGo is an Indian low-cost airline set up by Rahul Bhatia of InterGlobe Enterprises and
Rakesh Gangwal, a United States-based NRI. InterGlobe holds 51.12% stake in IndiGo, and
Caelum Investments, Gangwal’s Virginia-based company, Caelum Investments, 48%.

In June 2005, IndiGo placed a firm order for 100 Airbus A320-200 aircraft with plans to
commence operations in mid-2006 and to take delivery of all the 100 aircraft by 2015–2016.
However, the airline completed its initial order ahead of schedule when the 100th aircraft was
delivered on November 4, 2014.

In July 2006, IndiGo received its first Airbus A320-200 aircraft and commenced operations
on August 4, 2006, with a service from New Delhi to Imphal via Guwahati. By the end of the
year, the airline had 6 aircraft, and 9 more aircraft were delivered in 2007 taking the total to
15.

By the end of 2010, IndiGo already had 17.3% of the market share, replacing the state-run
flag carrier Air India as the third airline in India, behind Kingfisher Airlines and Jet Airways.

In 2011, IndiGo placed an order for 180 Airbus A320 aircraft, 30 regular A320 and 150
A320neo, a new generation version of the A320 scheduled for delivery from 2016.
In September 2011, after receiving the license to operate international flights, IndiGo
launched its first international service between New Delhi and Dubai. The international
services were expanded with flights from New Delhi and Mumbai to Bangkok, Singapore,
Muscat, and Kathmandu. Now, international flights are also operated from several cities
including Bangalore, Chennai, Kochi, Kolkata, Kozhikode, Thiruvananthapuram, and
Visakhapatnam.

In August 2012, six years after operations commenced, IndiGo became the largest airline in
India in terms of market share (27%) surpassing Jet Airways. Strongly adhering to a low-cost
model, IndiGo buys only one type of aircraft and keeps operational costs as low as possible
along with an emphasis on punctuality. Being a low-cost carrier (LLC), IndiGo offers only
Economy Class seating and does not provide on any of its flights in-flight entertainment or
complimentary meals (though it does have a buy-on-board in-flight meal programme).
Premium services, with additional benefits like a pre-assigned seat and meals on board, are
offered at a higher fare.

In 2013, IndiGo was the second fastest growing LLC in Asia, behind Indonesian airline Lion
Air. In August 2013, the Center for Asia Pacific Aviation ranked the airline among the 10
biggest low-cost carriers in the world.

In August 2015, IndiGo placed a new order for 250 Airbus A320neo aircraft worth $26.5
billion, the largest single order ever as number of aircraft in Airbus history. The order also
provides IndiGo the option to convert some A320neo to A321neo, which have more seats and
fly on longer routes. The Airbus A320neo family aircraft will be delivered between 2015 and
2022.

As of September 2015, with a market share of 36.5%, IndiGo is the largest airline in India in
terms of passengers flown. IndiGo operates more than 647 daily flights to 39 destinations, 34
in India and 5 internationals. Its primary hubs are at Indira Gandhi International Airport
(Delhi) and Visakhapatnam Airport (Vizag), but the airline also operates from two secondary
hubs at Netaji Subhas Chandra Bose International Airport (Kolkata) and Chhatrapati Shivaji
International Airport (Mumbai). IndiGo presently operates a fleet of 98 aircraft belonging to
the Airbus A320 family.

In March 2016, IndiGo received its first A320neo aircraft. IndiGo was Airbus’ biggest
A320neo customer with a total of 430 aircraft placed in 2011 and 2015. In November 2018,
IndiGo switched 125 aircraft of its existing Airbus A320neo order to the longer range
A321neo aircraft.

In 2017, IndiGo became the first Indian carrier to operate 1000 flights a day and, with the
delivery of the 31st Airbus A320neo aircraft, a fleet of 150 aircraft. IndiGo also took delivery
of its first ATR 72 600 aircraft in December.

In 2018, IndiGo continued to expand its international route network to 15 destinations,

adding daily non-stop flights to Hong Kong, Male, Phuket, and Kuala Lumpur.

At the Skytrax World Airline Awards 2018, IndiGo won the ‘Best Low-Cost Airline in
Central Asia & India’ award for the 9th consecutive year. IndiGo, India’s largest passenger
airline with a market share of 43.2%, focuses on three pillars – offering low fares, being on-
time and delivering a hassle-free experience.
No fatal accidents involving IndiGo aircraft were registered so far.

IndiGo uses an Indigo-sky blue livery, as seen on the Airbus A320 aircraft.

CORPORATE AFFAIRS
Ownership and structure
Interglobe Aviation Limited is publicly traded under NSE: INDIGO, with a market
capitalization of about ₹32,709.61 Cr as of 23 March 2020.

Headquarters
IndiGo is headquartered in Gurugram, Haryana, India. Ronojoy Dutta is currently the CEO of
InterGlobe Aviation.

DESTINATIONS
As of March 2020, IndiGo operates more than 1,500 daily flights to 87 destinations, 63 in
India and 24 abroad. Its main base is located at Delhi, with additional bases
at Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Jaipur and Ahmedabad. In January
2011, IndiGo received a license to operate international flights after completing five years of
operations. IndiGo's first international service was launched between New
Delhi and Dubai on 1 September 2011.
Codeshare agreements
IndiGo codeshares with the following airlines:
 Qatar Airways
 Turkish Airlines
FLEET
As of November 2020, IndiGo operates the following aircraft:
Aircraft In service Orders Passengers Notes
Airbus A320-200 122 — 180 To be phased out
Airbus A320neo 116 222
180 Largest operator
186
Airbus A321neo 24 130 222
Airbus A321LR — 248 TBA
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.

IndiGo's first A321neo in Delhi

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 Airbus A320neo

An ATR 72-600 of IndiGo

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.
MANDTORY WEB CHECK-IN

Complete your government-mandated web check-in for free 48 hr to 60 min before flight.
Facilitation fee of ₹100 for airport check-in with assistance.

Tips to minimise contact while travelling

To ensure your well-being, we have made some changes to the way you travel with us.
 Mandatory health declaration

It is mandatory to declare your health status and web check-in, 48 hours to 60 min before
flight departure. Boarding pass will be emailed only after successful declaration of health
status.
 Baggage allowance

Check-in Baggage: 15kg per person (1 piece only) effective Oct 1st, 2020. For Double or
Multiseats bookings, extra 10 kg. Additional charges may apply for excess baggage. Hand
Baggage: One hand bag up to 7 kgs and 115 cms (L+W+H), shall be allowed per customer.
For contactless travel we recommend to place it under the seat in front, on board.

 Generate baggage tag

Add your check-in baggage online and generate baggage tag, 48 hours to 60 min before flight
departure.

 Printed copy of boarding pass and baggage tag

Carry a printed copy or soft copy of your boarding pass and bag tag, you can alternatively
print the same from the airport kiosk. Please note only certain airports are equipped with
kiosks which print baggage tags; hence it is advised that you mention your name and PNR on
a thick paper and tag it to your baggage before reaching the airport.

 Reach 2 hours early

Reach the airport 2 hours before your flight time to ensure sufficient time for necessary
procedures. Airport counters close 60 min before flight time.

 Personal hygiene measures

Wear your mask at all times, carrying a sanitiser is recommended.

 SERVICE PROFILE

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 SonyLIV, an on demand video app for providing its
passengers with entertainment options in-flight and at the airport.
December 2019, it became India's first airline to have a fleet size of more than 250 aircraft.
One can use web check-in any time up to 1 hour before your scheduled departure of your
domestic flight for Free. You must enter your booking reference number, and your email
address or last name as on the ticket. Make sure you carry a print of your boarding pass and
check your luggage at the right drop counter. To use the Indigo airlines web check-in, click
here.

SERVICE MARKETING MIX

A selection of services developed to offer customers a choice within a particular range. The
elements of a service marketing mix are called 7 P’s: the 4 P’s of marketing mix (product,
price, place, promotion) plus 3P’s of services (people, process, physical evidence).

7 P's of Indigo Airlines

Service Marketing Mix of Indigo Airlines
 Products
Indigo Airlines provides 2 types of product services they are
1. On ground services
2. In-flight services

Core Product
The core product of indigo airlines is that they provide low-cost passenger air transportation
for middle class and lower middle-class customers so that they can also experience flight
journey.

Supplementary Product
Along with the core product they also offer supplementary product. They are like Check in,
Food on board, connecting flight while traveling where the service is not available,
Complementary gifts along with the travel, In-flight entertainment such as music, movies
games and Frequent flier programs.

Augmented Product
A commodity that has both the primary physical attributes and the non-physical attributes
that are added to increase the product's value. They Augmented product are-
o Online booking
o Variety of meal options
o Pick up and drop service
o Mobile ticketing

Price
Price is one of the major marketing mixes for any industry. To be simple Indigo airlines
succeeded because of the cheap fares which opened the gates for the middle-income group. In
fact, that happens to be its competitive advantage when travelers are comparing prices. This
makes it one of the most sought airline services in India because of its quality services as
well. The control department plays a major role in maintaining the cost by the company. With
decrease in prices and increase in the number of passengers every day, Indigo faces a tough
competition from SpiceJet and Air India. There are also constant discounts that keep
customers coming back.

Place and Time

Indigo airlines have rounded the clock online booking so that they can avoid the difficulty for
customers in going to a booking counter and wait. They also have tie up with various travels
and tours operators. Another interesting is that they have affiliation with many companies
regarding their entire travel plans. As a matter of fact, there are about 29 current Indigo
destinations but expansion is ongoing. While that is the case, the airline has ensured that its
core strategies are maintained. The core strategies include keeping the airline the most
affordable airline in India and keeping flying a pleasant experience. With its fleet of 78
aircrafts and as many as 508 flights daily, it operates 29 domestic and international
destinations while its competitor SpiceJet as 56 of its aircraft operating 45 destinations. Thus,
the strategy is to provide more capacity on fewer routes than thinly spread itself over many
destinations.

Promotion
No airline has worked harder at capturing the local market better than IndiGo Airlines. The
airline relies on its cost and availability to promote its brand across the market. This
investments in advertisements are low because it affects the cost. However, Indigo did come
out with a few TVC’s of its own as well as does good advertising online. The airline has
adopted a strategy of connecting flights to other destinations from one destination such that
customers will not have to book another airline to arrive to their destination. For instance, it
has connected four flights from Ranchi to Delhi, Mumbai, Patna and Bangalore and plans are
underway for it to add Kolkata and Raipur. Although not a direct marketing strategy, this
strategy has seen it gain more customer base because customers would want to cut costs by
using just one aircraft to reach their destination. Other promotion methods used by Indigo
aircraft include media vehicles like billboards, print media advertising and advertising on
travel portals.

Process
The process is related to service delivery for the customers the best policy. The management
policy should be transparent as possible to attain the loyalty of the customers. The process
mix of indigo airlines Service Marketing Mix of Indigo Airlines International Conference on
Service Marketing involve the reservation system, how effectively the flight information is
provided to the customers, the facilities provided in the airport, Baggage handling facility, in-
flight service and check in process.

People
The people involved in the business directly and indirectly are very important for indigo
airlines as they will be providing a lot of information. Travel agents will be providing direct
business to the airlines so a proper channel should be made to identify the strength of travel
agents in a particular area. Employees of a firm are its best resource as the human capital
increases production and optimum utilization people with high customer services skills
should be hired to impress the clientele as indigo is providing customer service. The customer
should be given first-hand information as to what is the schedule for their flights in case of
any delays or complexities.
 Physical Environment
Physical environment in airline can be divided into two:
1. Ground
The ground environment can be considered like the booking office, the baggage facility
system, on ground handling system can be considered as the physical environment of the
indigo airlines.
2. In-Flight
In-flight service is the most important functionality which may have the direct impact on the
customers. The in-flight physical environment can be like the amenities provided in the
flight, the cleanliness of the flight, ambience in the flight.

6E Prime Service

Passengers booking IndiGo flights have the option to buy ‘6E Prime’ which entitles each
passenger to the following services upon payment of Fees: (i) seat selection (except for XL
seats, which can be purchased at a 50% discount to their original price, if such seats are
purchased at the time buying 6E Prime), (ii) snack (one food item and one beverage as
selected at the time of purchasing 6E Prime. If no selection is made, a snack and beverage
available on the flight shall be served), and (iii) Fast Forward. 6E Prime is not available for
group bookings.

Seat Plus

Comfort is the foremost priority for indigo. Hence, they offer reservation option for preferred
seats to passengers.

In case passenger don’t wish to purchase a preferred seat, they can always select any free seat
available or they would be assigned a seat free of charge at the time of check-in at the airport.

Indigo offer advance reservations for preferred seats to their passengers, they may choose a
window seat, aisle seat or a seat with extra leg room. Below is the table of charges for
preferential seating. In case passenger don’t wish to purchase a preferred seat, they can
always select any free seat available or would be assigned a seat free of charge at the time of
check-in at the airport.

Plan B

 You can review and accept the revised flight to avoid receiving repeated text
messages.
 You can view and rebook another flight as per your convenience.
 You can cancel and process refund.
Special Disability Assistance
IndiGo welcomes the opportunity to provide caring customer service to their customers with
disabilities. To be able to assist customers the best, they request customers to notify them of
your special needs/wheelchair request at least forty-eight (48) hours prior to the schedule
departure of your flight. While making your booking let them know how they can best assist
you and what seat will best accommodate your needs. If you arrive at the airport without a
seat assignment, we will make every effort to provide the requested accommodation.

AWARDS AND ACHIEVEMENT

 Best LCC by the airline passengers association of India (2007).
 Best LCC at the Galileo express travel awards (2008).
 CNBC Awaaz’s Travel award for best low-cost airline (2009).
 Skytrax awards - best low-cost carrier (2010,11,12).
 The economic times award for corporate excellence: Best emerging company 2016
FUNCTIONAL DEPARTMENT
 ORGANISATIONAL STRUCTURE

BOARD OF DIRECTORS

CEO
Mr. Ronojoy Dutta

Mr. Ronojoy Dutta, Whole Time Director and Chief Executive Officer, is a graduate from the
Indian Institute of Technology, Kharagpur and has completed his Master’s in Business
Administration from the Harvard Business School. An aviation veteran, he was with United
Airlines for nearly twenty years, holding a broad spectrum of leadership positions in
Planning, Maintenance, Finance and Information Technology. Rono was an advisor to both
Air Canada and US Airways during their restructuring and was engaged in long-term
consulting contracts with Hawaiian Airlines and Air Canada. He has served on the Boards of
United Airlines, US Airways and Marsico Trust Funds. Rono also has experience in the
Indian aviation sector having worked with Air Sahara as President for two years.

CHAIRMAN OF THE BOARD

Mr. M. Damodaran
Mr. M. Damodaran is the Non-Executive Independent Director and Chairman of the Board.
He has held a number of important positions in the Central and State Governments and in
India’s financial sector, including Chairman, Securities Exchange Board of India (SEBI),
Chairman, Unit Trust of India (UTI), Chairman, Industrial Development Bank of India
(IDBI), and Chief Secretary, Government of Tripura. After successful tenures at UTI and
IDBI, where he led the turnaround efforts, and at SEBI where he introduced improved coach
and mentor and serves on the Boards of some leading companies as well as on the Advisory Boards of
some foreign entities.

DIRECTOR
Mr. Rahul Bhatia

Mr. Rahul Bhatia is the Promoter and a Non-Executive Director of the Company. He is also
the Group Managing Director of InterGlobe Enterprises. He holds a degree in electrical
engineering from the University of Waterloo in Ontario, Canada.
Mr. Bhatia established InterGlobe Enterprises in 1989 with its flagship business of Air
Transport Management. With a substantial experience of over 3 decades in the travel
industry, it is under his effective captainship that the InterGlobe Group has diversified its
portfolio, which now includes Civil Aviation (IndiGo), Hospitality, Airline Management,
Travel Commerce, Advanced Pilot Training, and Aircraft Maintenance Engineering.
In 2011, Mr. Bhatia was recognized as the ‘Entrepreneur of the Year’ by Ernst & Young and
also by The Economic Times. In the same year, he received ‘The Outstanding Start-Up’
award at the Forbes India Leadership Awards as well. In 2016, he was featured on the
Forbes’ Global Game Changers List.
DIRECTOR
Ms. Rohini Bhatia

Ms. Rohini Bhatia is the Non-Executive Director and the Chairperson of the CSR committee
of the Company. She is also the Chairperson of InterGlobe Foundation, the philanthropic arm
of InterGlobe Group.
Under Ms. Bhatia’s guidance, IndiGo’s CSR has gained both in depth and outreach and is
doing exemplary work in the fields of education, heritage restoration, environment protection
and women’s empowerment. She is especially passionate about heritage restoration and waste
management and has led this work from the front. The restoration of the Rahim’s tomb in
New Delhi is one of the finest examples of her interest in this cause.
Ms. Bhatia has a diploma in Textile designing and serves as a Director on the boards of
several InterGlobe Group companies.

DIRECTOR
Mr. Rakesh Gangwal
Mr. Rakesh Gangwal, a citizen of the United States of America is the Promoter and Non-
Executive Director of the Company. He holds a bachelor’s degree in mechanical engineering
from the Indian Institute of Technology, Kanpur. He also holds a master’s degree in business
administration from the Wharton School, University of Pennsylvania, with a major in
finance. He has more than 30 years of experience in the aviation industry. Mr. Rakesh
Gangwal joined United Airlines in February 1984 where he held positions of various
responsibilities before leaving as Senior Vice President - Planning in November 1994. Mr.
Gangwal then joined Air France as an Executive Vice President - Planning and Development
in November 1994. He left Air France in February 1996 to join the US Airways Group, Inc.
and US Airways Inc. as the President and Chief Operating Officer. In November 2001, he left
the US Airways Group as the President and Chief Executive Officer and was engaged in
private equity and consulting related activities. Mr Gangwal worked with Worldspan
Technologies, Inc. from June 2003 to August 2007 as the Chairman, President and Chief
Executive Officer.

DIRECTOR
Dr Anupam Khanna

Dr Anupam Khanna is a Non-Executive Independent Director of the Company. Dr Khanna

holds a Ph.D. and a master’s degree in electrical engineering and management
science/engineering economic systems from the Stanford University, California. Dr Khanna

has a Bachelor of Technology degree from Indian Institute of Technology, Kanpur. Dr

Khanna joined the World Bank in December 1980. From September 2000 till March 2003 Dr
Khanna was the Chief Economist for Shell International, London where he was also a core
member of the Global Scenarios Team. He again joined World Bank in September 2003 Dr
Khanna joined our Board on March 27, 2015.
DIRECTOR
Mr. Anil Parashar

Mr. Anil Parashar, a Non-Executive Director, is a fellow member of the Institute of Chartered
Accountants of India and is a graduate in Economics from Delhi University. He has
previously been a Director of the Company for a period from May 30, 2007 to March 26,
2015. Mr. Parashar has extensive operational and financial experience in handling various
aspects of business including raising funds, capital restructuring, mergers & acquisitions,
statutory compliances, investor relations and long-term planning. He is currently the
President and Chief Executive Officer & Whole time Director of InterGlobe Technology
Quotient Private Limited (ITQ). Prior to this, he was the Group Chief Finance Officer at
InterGlobe Enterprises Limited. He is a member of InterGlobe group’s Executive Committee
and holding various positions on the Boards of several InterGlobe group companies. He is
credited with over 30 years of rich experience including leadership positions at Swiss Air and
Asbestos Cement Company. He is also a representative on PHD Chamber of Commerce,
Assocham and FICCI Forums on Taxation and Travel & Tourism.

DIRECTOR
Mr. Gregg Albert Saretsky
Mr. Gregg Albert Saretsky is a Non-Executive Director of the Company. An aviation
industry veteran, with an illustrious career spanning over 36 years, Mr. Saretsky is presently
associated with Wood Buffalo Economic Development Corporation, Fort Mcmurray, AB as
Director and Chairman of the Board (since June 2018) and RECARO Holding GmbH,
Stuttgart, Germany as Director, Advisory Board (since October 2018). 
Mr. Saretsky has been the President and CEO of WestJet, Calgary, Alberta (Canada) for 8
years, from March 2010 to March 2018. In this role, he was responsible for providing
strategic direction to the organisation, as well as for financial management of the company.
He has been instrumental in playing a pivotal role in management of shareholder and board
relations, public relations, internal & external communications, labour relations, and
employee engagement. During his term, the size of the airline was doubled and revenues
were diversified from a regional base in Western Canada to a network of more than 100 cities
in 17 countries. WestJet was recognized as Canada’s on-time airline and multi-year winner
of Waterstone Capital’s “Most Admired Corporate Culture” award. Under his leadership,
WestJet was awarded Trip Advisor’s Traveller’s Choice Award for “Best Airline in Canada,”
“Canada’s Most Trusted Airline” from The Gustavson School of Business, and one of
Canada’s “Top 3 Brands” by Canadian Business Magazine.
Prior to WestJet, Mr. Saretsky was associated with Alaska Airlines, Seattle, Washington
(USA) from March 1998 till December 2008. From February 2007 to December 2008, he was
Executive Vice-President, Operations and assumed the position of COO with added
responsibilities for in-flight, flight operations, dispatch and system operations control
personnel and the airline's relationship with the Federal Aviation Administration (FAA).
Mr. Saretsky holds a degree in Advanced Management International Management from
University of Alberta, Banff, Alberta. He has also done MBA - Finance & Marketing and
BSc- Microbiology & Biochemistry from University of British Columbia, Vancouver.

DIRECTOR
Ms. Pallavi Shardul

Ms. Pallavi Shardul Shroff is a Non-Executive Independent Director of the Company. Ms.
Shroff is the Managing Partner of Shardul Amarchand Mangaldas & Co. with over 37 years
of extensive experience. Her broad and varied representation of public and private
corporations and other entities, before various national courts, tribunals and legal institutions
has earned her national and international acclaim. She is a member of the Competition Law
Review Committee, constituted by the Government of India. Ms. Shroff has been closely
involved with some of the most challenging litigation and arbitration matters in India. She
appears regularly in the Supreme Court and High Courts of India, and in arbitrations,
mediations and international legal disputes. She has recently been appointed on the ICC
(International Chamber of Commerce) Court of Arbitration. She is presently a Director on the
Boards of prestigious companies viz. Apollo Tyres Ltd., Trident Ltd., Asian Paints Ltd and
One97 Communications Ltd (Paytm). Ms. Shroff was recently conferred the ‘Lifetime
Achievement Award’ at the Chambers India Awards 2019 and also been recognised as one of
the Most Powerful Women in Indian Business by Business Today, seven years in succession
(2013-19).

DIRECTOR
Dr. Venkataramani Sumantran
Dr. Venkataramani Sumantran is a Non-Executive Independent Director of the Company. Dr.
Sumantran, 61 years, has been an industry leader, technocrat, academic and author, having
worked in the USA, Europe and Asia through a career spanning over 35 years. He is currently
Chairman and Managing Director of Celeris Technologies since 2014, a strategic advisory
engaged in the domains of autos, mobility, digital transformation, aerospace, and
technologies. He serves on several statutory boards and advisory boards in India, Europe and
USA. He is also an Adjunct Professor at MISI-Massachusetts Institute of Technology.

Until 2014, he served as Executive Vice-Chairman of Hinduja Automotive, UK, the auto and
manufacturing sector holding company of the Hinduja Group as well as Vice Chairman of
Ashok Leyland Ltd. He led the group's expansion strategy including sectors such as Light
Commercial Vehicles, Construction Equipment, IT, and Emission Technologies. Previously
(2001-2005), Dr. Sumantran was Executive Director of Tata Motors Ltd. and Chief Executive
of the Car business during its formative years, reporting to Mr. Ratan Tata. Earlier, Dr.
Sumantran had a 16-year career with General Motors starting in the Research &
Development (R&D) Centre in Detroit and subsequently as Director, Advanced Engineering
in GM-Europe.
ORGANISATIONAL CHART OF INDIGO AIRLINES
 SWOT ANALYSIS

An airline company headquartered in Gurgaon, Haryana, Indigo positions itself as a low-cost

carrier. Established as a private enterprise in the year 2006 by Rahul Bhatia, Indigo listed
publicly in the year 2009.
In addition to domestic flights to various Tier 1 and Tier 2 cities across India, Indigo also
flies to international locations like Dubai, Malaysia, Singapore, Bangkok, Kathmandu,
Sharjah, and Doha. Indigo is currently India’s largest passenger carrier and in the year 2018,
it has registered a market share of 39.9 %.
The company operates a fleet of 161 aircraft flying them to 42 domestic and 8 international
destinations. The company registered an annual turnover of 2.5 billion USD and employs
around 12,362 employees. The company has been awarded consecutively for eight years in
various surveys done by rating agencies as one of India’s best places to work with.
SWOT analysis of Indigo Airlines analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In Indigo Airlines SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Indigo
Airlines to benchmark its business & performance as compared to the competitors and
industry. Indigo Airlines is one of the leading brands in the airlines sector.

WEAKNESS

STRENGTHS SWOT OPPORTUNITIES

THREATS
  Strengths
Strengths are defined as what each business does best in its gamut of operations which can
give it an upper hand over its competitors. The following are the strengths of IndiGo:
o Positive Image: IndiGo has carved an image of being the most efficient low fare
operator not just in the domestic market but also globally. This image of a low-cost
carrier that provides high-quality services has resulted in making it the preferred
travel option for many frequent travelers.

o Services: Indigo offers a wide gamut of services such as multi-channel direct sales,
online flight booking, round the clock customer support through call centers and
airport counters, online flight status checking, a user-friendly IndiGo app for Android
etc.

o High stakeholder engagement: Through a robust customer interface Indigo ensures

that it keeps track of customer needs and also communicates to every customer on a
regular basis. Indigo also has a high level of employee satisfaction and has been
consistently voted into India’s best places to work in.

o Highly drive workforce: Indigo is a hassle-free place to work in and this has ensured
that they have a highly motivated and self-driven workforce. IndiGo has deployed the
I-fly facility where their new employees are given complete real-time training on how
to deliver the best customer service. This has been considered as the best training
facility in this domain. In addition to this, the company also ensures that their
employees enjoy a stress-free environment with a proper work-life balance.

o Corporate Social Responsibility: The Corporate Social Responsibility (CSR) initiative

of the airline named as IndiGo Reach has undertaken a lot of initiatives for the
upliftment and well-being of children, women empowerment, and environment. Their
social work encompasses not just cities but extends to remote locations as well.

o Fleet Strategy: The fleet strategy of Indigo has always focused on ensuring that the
average fleet age in four years. The airline has also ensured that it purchases its fleet
at prices much lower than what a seller would sell them for. This has helped the
airline maintain its low costs consistently.

o  Strong relationship with existing suppliers – As an incumbent in the industry, Indigo

Aviation has strong relationship with its suppliers and other members of the supply
chain. According to Arpita Agnihotri, Saurabh Bhattacharya, the organization can
increase products and services by leveraging the skills of its suppliers and supply
chain partners.

o Strong Balance Sheet and Financial Statement of Indigo Aviation can help it to invest
in new and diverse projects that can further diversify the revenue stream and increase
Return on Sales (RoS) & other metrics.
 o Managing Regulations and Business Environment – Indigo Aviation operates in an
environment where it faces numerous regulations and government diktats. In areas,
the firm needs to navigate environment by building strong relationship with lobby
groups and political network.

o First Mover Advantage – Indigo Aviation has first mover advantage in number of
segments. It has experimented in various areas. The Strategy & Execution solutions &
strategies have helped Indigo Aviation in coming up with unique solution to tap the
un-catered markets.

o Intellectual Property Rights – Indigo Aviation has garnered a wide array of patents
and copyrights through innovation and buying those rights from the creators. This can
help Indigo Aviation in thwarting the challenges of competitors in various industries.

o High Margins – Indigo Aviation charges a premium compare to its competitors.

According to Arpita Agnihotri, Saurabh Bhattacharya of Indigo Airlines case study,
this has provided Indigo Aviation resources to not only thwart competitive pressures
but also to invest into research and development.

o Superior product and services quality can help Indigo Aviation to further increase its
market share as the current customer are extremely loyal to it. According to Arpita
Agnihotri, Saurabh Bhattacharya in Indigo Airlines study – there are enough
evidences that with such a high quality of products and services, Indigo Aviation can
compete with other global players in international market.

 Weaknesses
Weaknesses are used to refer to areas where the business or the brand needs improvement.
Some of the key weaknesses of Indigo are:
o Sustaining profits: Indigo is positioned as a low-cost carrier and thus pricing for the
airline needs to be as low as it can be managed. At the same time, the costs need to be
maintained as low as possible. However, Indigo has often been unable to sustain its
profits consistently and this can be a weakness for the company.

o Over-dependence on volumes: In order to sustain profits the company needed to

ensure that the volumes were always high and business could not be affected by
fluctuations in demand. This means that the business needs to ensure that sufficient
steps are taken to ensure consistent volumes and this required an additional
investment.

o The grounding of aircraft: After the safety of Pratt & Whitney aircraft became
questionable, the Civil Aviation Authority had to make a decision to ground these
airplanes owned by Indigo. This scandal affected the goodwill and trust of the
customer.
 o Lack of Work force diversity – I believe that Indigo Aviation is not diverse enough
given that most of its growth so far is in its domestic market. According to Arpita
Agnihotri, Saurabh Bhattacharya, this can reduce the potential of success of Indigo
Aviation in the international market.

o Lack of critical talent – I believe that Indigo Aviation is suffering from lack of critical
talent especially in the field of technology & digital transformation. Indigo Aviation is
struggling to restructure processes in light of developments in the field of Artificial
Intelligence (AI) and machine learning.
o Low Return on Investment – Even though Indigo Aviation is having a stable balance
sheet, one metrics that needs reflection is “Return on Invested Capital”. According to
Arpita Agnihotri, Saurabh Bhattacharya in areas that Indigo Aviation operates in the
most reliable measure of profitability is Return on Invested Capital rather than one
favored by financial analysts such as – Return on Equity & Return on Assets.

o Track record on environment consideration is not very encouraging – Indigo Aviation

track record on environmental issues is not very encouraging. According to Arpita
Agnihotri, Saurabh Bhattacharya, this can lead to consumer backlash as customers are
now considering environmental protections as integral to part of doing business.

o Indigo Aviation business model can be easily replicated even with the number of
patents and copyrights the company possess. The intellectual property rights are very
difficult to implement in the industry that Indigo Aviation operates in. According to
Arpita Agnihotri, Saurabh Bhattacharya, Intellectual Property Rights are effective in
thwarting same size competition but it is difficult to stop startups disrupting markets
at various other levels.

o Organization Culture – It seems that organization culture of Indigo Aviation is still

dominated by turf wars within various divisions, leading to managers keeping
information close to their chests. According to Arpita Agnihotri, Saurabh
Bhattacharya of Indigo Airlines case study, this can lead to serious road blocks in
future growth as information in silos can result can lead to missed opportunities in
market place.

 Opportunities
Opportunities refer to those avenues in the environment that surrounds the business on which
it can capitalize to increase its returns. Some of the opportunities include:
o Growing demand for foreign travel : Opening up of International routes can boost
business of IndiGo. There is a surge in the number of people in India who need to
travel to foreign locations both for business and pleasure. This means that there is a
huge scope for the airline to expand to more foreign destinations.
 o E-Commerce and Social Media Oriented Business Models – E-commerce business
model can help Indigo Aviation to tie up with local suppliers and logistics provider in
international market. Social media growth can help Indigo Aviation to reduce the cost
of entering new market and reaching to customers at a significantly lower marketing
budget. It can also lead to crowd sourcing various services and consumer-oriented
marketing based on the data and purchase behavior.

o Growing Market Size and Evolving Preferences of Consumers – Over the last decade
and half the market size has grown at brisk pace. The influx of new customers has
also led to evolution of consumer preferences and tastes. This presents Indigo
Aviation two big challenges – how to maintain loyal customers and how to cater to
the new customers. Indigo Aviation has tried to diversify first using different brands
and then by adding various features based on customer preferences.

o Developments in Artificial Intelligence – Indigo Aviation can use developments in

artificial intelligence to better predict consumer demand, cater to niche segments, and
make better recommendation engines.

o Lucrative Opportunities in International Markets – Globalization has led to

opportunities in the international market. Indigo Aviation is in prime position to tap
on those opportunities and grow the market share. According to Arpita Agnihotri,
Saurabh Bhattacharya, growth in international market can also help Indigo Aviation to
diversify the risk as it will be less dependent on the domestic market for revenue.

o Access to International Talent in Global Market – One of the challenges Indigo

Aviation facing right now is limited access to high level talent market because of
limited budget. Expansion into international market can help Indigo Aviation to tap
into international talent market. According to Arpita Agnihotri, Saurabh Bhattacharya,
it can also help in bringing the talent into domestic market and expanding into new
areas.

o Reducing Cost of Market Entry and Marketing into International Markets –

According to Arpita Agnihotri, Saurabh Bhattacharya, globalization along with boom
in digital marketing and social media has considerably reduced the risks of market
entry and marketing in international market.

 Threats
Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:
o Competition: The airline faces a lot of competition from brands such as Jet Airways,
Indian Airlines, Air India, Singapore Airlines etc.

o Costing: Rising Fuel Costs can affect business margins for Indigo. The key
components of cost in an airline is the fuel which is highly fluctuating and in order to
 manage the pricing in accordance with the dynamics of fuel prices is a threat today
and even in the future.

o Credit Binge post 2008 Recession – Easy access to credit can be over any time, so
Indigo Aviation should focus on reducing its dependence on debt to expand. The party
has lasted for more than a decade and rollback from Fed can result in huge interest
costs for Indigo Aviation.

o Culture of sticky prices in the industry – Indigo Aviation operates in an industry

where there is a culture of sticky prices. According to Arpita Agnihotri, Saurabh
Bhattacharya of Indigo Airlines case study, this can lead to inability on part of the
organization to increase prices that its premium prices deserve.

o Increasing bargaining power of buyers – Over the years the bargaining power of
customers of Indigo Aviation has increased significantly that is putting downward
pressure on prices. The company can pursue horizontal integration to consolidate and
bring efficiencies but I believe it will be a short-term relief. According to Arpita
Agnihotri, Saurabh Bhattacharya, Indigo Aviation needs fundamental changes to
business model rather than cosmetic changes.

o Threats of New Entrants because of Reducing Costs and Increasing Efficiencies – As

Indigo Aviation can leverage low cost of reaching customers using social media and
e-commerce, so can the competitors – both local and international competitors.

o Squeezing Middle Class in Developed and Developing World – The growing

inequality is one of the biggest threats to not only globalization but also to capitalism.
Indigo Aviation first hand witnessed the impact of it where it has seen lower demand
of its products from middle class customers in US and EU market.

o International Geo-Political Factors – Since the Trump election, geo-political factors

have taken a turn for growing protectionism. Developments such as Brexit, Russian
sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are
impacting international business environment. Indigo Aviation should closely focus
on these events and make them integral to strategy making.
 CHAPTER 4
CONCLUSION
In light of the growth in aviation industry, specifically in the MRO and Air charter sectors,
this study becomes important due to the fact that people are traveling more frequently and
wish to do so quicker and more efficiently. With businesses growing faster than before, the
need for Air Charter is increasing day by day and hence a study of the evolution and
challenges faced by the entrepreneurs engaged in Air Charter would add value to the
industry. The challenges faced by MROs which is a limiting factor in the growth of this
sector, would create a problem for the Airlines in the near future. According to the Industry
sources 85% of the aviation maintenance is still outsourced to the US and Europe or their
subsidiaries outside India. Hence a study was past due in the area of aviation MRO, to
evaluate the challenges, which if addressed at the industry level could give impetus to the
development of this sector. Investment, Regulatory, Control by the manufacturers, human
and technical challenges have been investigated. This study has sought to identify the major
factors, which affected the evolution of entrepreneurs in these two sectors. On the basis of
factors which affected the evolution of entrepreneurs, an endeavor has been made to study the
impact of these evolutionary factors on the sustenance of entrepreneurs. The research also
examines the structure of the aviation industry in India and the entrepreneurial challenges that
it has thrown up. It also discusses the sweeping changes that have radically changed the face
of the aviation industry, the general economic conditions that have deeply influenced the
industry, gradual process of liberalizing of air services, entrepreneurial interest and growth of
new airlines, allocation of capacity at airports, reforms in the ground handling markets and
other related issues. Further, it describes in detail the new regulatory problems thrown up by
liberalization, as well as measures taken by entrepreneurs to overcome them. However, on the
other hand, low-cost carriers in India have mushroomed in both the markets because of their
effective marketing strategies. However, it must be noted that major airlines’ as well as low-
cost carriers’ future is unpredictable and many see both of them in danger because of
increasing oil prices, government taxes, increased in duties and all Overall, the growth
chances for low-cost carriers are much higher in both India. I would more concentrate and
will have ask the question to the Air-India because it’s Local Airlines of Government of
India. It is the major airlines from both the settings that are seen to be facing critical
challenges in the recent future. For which supply and demand is one single area that must be
taken into serious consideration by these airlines because it is this are that has been
historically overlooked by major airlines. Third largest aviation market by 2020 By 2020,
International Journal of Innovative Knowledge Concepts, 2(4) April, 2016 97 passenger
traffic at Indian airports is expected to increase to 421 million from 106.4 million in 2016.
The travel & tourism industry is forecast to grow 12.79 per cent to USD475.43 billion in
2025 from USD142.65 billion in 2015 Spending on business travel is estimated to increase to
USD36.53 billion in 2025 from USD19.34 billion in 2015, while that on leisure travel is
forecast to rise to USD192.83 billion in 2025 from USD97.20 billion in 2015.

The airline industry is cyclical and sensitive to a number of external economic factors that
affect the number of domestic and international travelers, including consumer confidence and
corporate profit. Improved economic conditions over the five years to2016 have increased
demand for both business and consumer travel. The newer aircrafts are continuing to update
to satisfy the request from consumers. There has been a tremendous surge in the percentage
of people who are now traveling longer distances and becoming frequently flyers more than
ever before. As far as changes in travel preferences millennial are found to be willing to
spend more on business travel than other generations when it comes to business travel.
Globally the aviation industry is consumers over 200million tons of jet fuel per year (IBIS
World, 2016). There is an increasing demand for international flight and airport are beginning
to grow and airports now have a system to comply with passengers with connecting flights, it
is very important for airport to standardize their processes in order to minimize passenger
confusion benefiting the foot traffic of airport and making the airlines more profitable. The
airline industry is focusing on Safety, Efficiency and Environmental performance and
matching investment with returns, joining forces to ensure that government policies, avoiding
counter-productive taxation, supporting further liberalization and growth, Give tools to access
markets and consolidate where it makes business sense, making aviation business sense and
try to build a safe, secure and profitable environment, and become a stronger contributor to
the social and economic welfare of the region. The airlines industry in United States is highly
competitive. Airlines compete for customers on price, frequency and capacity, route
offerings, loyalty programs, promotions, rewards and service quality. Industry operators also
have to attract customers from substitute modes of transportation such as cars, trains and
buses. The level of competition is different among particular segments of the industry.

IndiGo airlines have a competitive advantage over other services in terms of customer
loyalty, services offered and the important of all the pricing strategy adopted by Indigo.
Because of its Pricing strategy it has adopted the name as low-cost carriers. Indigo also have
to look upon their future plans in order to stay alive in this non - stabilized market. The
Pricing also should be varied in accordance with the operating cost in order to reduce the
losses. Late last year, IndiGo ramped up its style quotient with a new look for its crew. The
airline partnered with fashion designer Rajesh Pratap Singh and stylist Ambika Pillai for the
navy-blue outfits with a touch of indigo. Design inputs were taken from in-flight crew and
senior management to create a single piece tunic to address the identified ‘on the job’
requirements. Hairstyle and make-up were also standardised to get a global look.
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. Low-cost airlines
have huge potential in the Indian market there are many players entering the market targeting
at price sensitive segment. Open sky policy and deregulation have further open space for
many players to enter the market. IndiGo has successfully implemented the low-cost strategy
with its value-added services but still it has huge potential to capture more market if it can
establish itself internationally, expand its service to the cargo. It also has initiated various
services to the society such as “indigo reach” is the CSR programme focus mainly on
education, environment and women.
 CHAPTER 5
BIBLIOGRAPHY
https://www.goindigo.in/
https://en.wikipedia.org/wiki/Aviation
https://www.theofficialboard.com/org-chart/indigo-airlines