In August 2024, InterGlobe Aviation Limited (IndiGo), the market leader and consistently the most profitable low-cost airline in India, announced its entry into a new customer segment, offering a business-class experience. IndiGo had initiated its journey in the highly competitive aviation industry by targeting price-sensitive travellers and offering a no-frills, on-time journey experience that the price-conscious Indian consumer much appreciated. IndiGo’s entry into the business-class segment and its rapid international expansion plan were efforts the airline had never before attempted. In the context of operational challenges that included the grounding of many aircraft due to engine issues, customer backlash over delays, and malfunctioning air conditioning systems, IndiGo needed to determine whether it was ready for this transition. Could it successfully balance its low-cost, high-efficiency approach with the growing demand for premium services?
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