Indigo is don no. 1
Indigo plans to dominate the Indian market. Indigo is using network mirroring to defeat the competition.
Indigo plans to dominate the Indian market. Indigo is using network mirroring to defeat the competition.
What is network mirroring?
…network mirroring is a practice in which an airline follows another airline on the same sector often at the same timings and with similar start dates. It is typically followed by airlines that have a huge fleet at its disposal. IndiGo has 191 aircrafts .
How has it affected other airlines?
Smaller rival networks are facing the heat.
Go Air: 2 networks
Air Vistara: 3 networks
Air Asia: 4 networks
Spicejet: 1 network
Which sectors does Indigo dominate?
There are sectors where Indigo’s frequency is more than the total frequency of the competitors.
Bengaluru-Kolkata-Kolkata: Indigo’s frequency is 10, while competitors’ is 6.
Chennai-Kolkata-Chennai: Indigo’s frequency is 8, while competitors’ is 8.
Kolkata-Agartala-Kolkata: Indigo’s frequency is 7, while competitors’ is 2.
Dig deeper: CNBC report
Update:
Indigo posted its first ever quarterly loss after going public
It posted a loss of INR 650 crore.
Insight:
It controls 42% of the market, and is waging the price war to win more market share. As a result it is incurring the costs, which also include fuel price ( highest in the world) and other expenses.
Indigo has indicated to keep the prices for the long time to come, to win more market share. It’s good news for the flyers, but not for the airline industry.