Indigo Airlines Case Study
As with most airlines in the past few years, Indigo Airlines faced increasing pressure to improve profitability and cut operational costs to compete with low-cost carriers in the region, all while dealing with the challenges of a rapidly changing and diverse market.With their existing infrastructure, the company realized that many departments were hampered by a lack of data availability —IT was experiencing access, time, and resource bottlenecks that prevented the distribution of vast amounts of data. On average, the team required 48 hours to access data. Furthermore, Indigo Airlines had historically captured transactional data within silos, creating yet another barrier to the data expediency and flexibility that end users demanded.
About Indigo Airlines Berhad
IndiGo(InterGlobe Aviation Limited) is an Indian low-cost airline headquartered at Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 48.1% domestic market share as of June 2019. It is also the largest individual Asian low-cost carrier in terms of jet fleet size and passengers carried, and the seventh largest carrier in Asia with over 46 million passengers carried in 2017. The airline operates flights to 66 destinations –51 domestic and 15 international.It has its primary hub at Indira Gandhi International Airport, Delhi.
Aspiring to a Data-Driven Future
Company leaders sought to transform IndAddressing Data Inaccessibility Under their previous technology stack, teams at Indigo Airlines had to wait days to access data, and departments frequently waited even longer for access and insights to be delivered. The company’s new cloud-based infrastructure offers a much faster data turnaround based on Ajatus Analytics Solution, to help close the data accessibility gap.
Addressing Data Inaccessibility
Under their previous technology stack, teams at Indigo Airlines had to wait days to access data, and departments frequently waited even longer for access and insights to be delivered. The company’s new cloud-based infrastructure offers a much faster data turnaround based on Ajatus Analytics Solution, which provides a scalable platform with adaptive processing power to quickly prepare data for analytics, machine learning, or artificial intelligence uses. Now the entire organization can access data via their tool of choice, available within two hours a drastic improvement from the previous duration of two days.
Increasing cross-departmental availability of data led to the realization of new revenue-driving projects and personalization features such as:
- Delivering personalized packages on the basis of passengers’ past purchase patterns and routes traveled
- Improving financial visibility into cost, price, and revenue levers
- Optimizing schedule development and fleet assignment
- Sending timely, personalized offers to increase redemption
- Offering customized pricing on ancillaries such as upgrades, leg room, and meals
Increasing Cost Efficiency
In support of their cost-savings initiative, Indigo Airlines looked for more affordable solutions to control analytics project and cloud maintenance costs. Ajatus Analytics Solution’ timely delivery of analytics led to millions in savings compared to the existing system. In addition, the switch to Azure and Ajatus Analytics Solution allowed IT to redistribute workloads so that a single administrator manages the big data project. The IT team was able to enact all of these changes with zero investments in retraining, resolving executive concerns about spiraling costs
Building a Culture of Big Data
Looking to the future, the company plans to continue leveraging big data to enhance operations and profitability. Two top-of-mind areas of focus are building out their cloud environment and driving operational efficiencies, both of which will help Indigo Airlines to optimize data processing and IT operations costs. As the company moves forward in its digital transformation journey, Ajatus Analytics Solution supports the data team in managing and scaling new and more complex workloads in a cost-effective and resource-friendly way.
- Deliver personalized customer experience while lowering costs
Timely data availability for analytics
- Business users can access data within 2 hours instead of 2 days
- Decreased data ingestion time by more than 90%
- Data now made available within 20 minutes of receipt
- Reduced infrastructure costs
- Saved thousands on analytics spend by leveraging Ajatus Analytics Solution
- Reduced big data project oversight to a single administrator
Ways data analytics is transforming airlines :Increase in airline revenue
Ajatus Analytics Solution helps the Indigo Airlines to understand customers’ preferences and other maintenance issues. For instance, analysis of ticket booking helps the industry to target the customers with personalised offers while optimising the price in real-time using predictive analysis techniques. As a result, by gathering meaningful data, airlines can fetch more bookings in the given timeframe.
Here Ajatus Analytics Solution has considered revenue management based on the idea that customers perceive product value differently, so the price they are ready to pay for it depends on target groups they belong to and purchase time. Hence, revenue management specialists of the Airlines make good use of AI to define destinations and adjust prices for specific markets, find efficient distribution channels, and manage seats to keep the airline simultaneously competitive and customer-friendly
- Smart maintenance
Due to the use of smart data analytics, passengers will avoid many issues with baggage tracking. While radio-frequency identification prevents mishandling the baggage, predictive analysis assists in improving the predictability of fleet reliability. With the airport traffic increasing day by day, Ajatus Analytics Solution will enable the airlines to keep on working on the optimization of the airspace use, especially when it comes to runway bandwidth, flight routes, types of aircraft, etc.
To illustrate, airlines bear high costs due to delays and cancellations that include expenses on maintenance and compensations to travellers stuck in airports. With nearly 30 % of the total delay time caused by unplanned maintenance, predictive analytics applied to fleet technical support is a reasonable solution.
Carriers have deployed predictive maintenance solutions to better manage data from aircraft health monitoring sensors. These systems are compatible with both desktop and mobile devices, granting technicians access to real-time and historical data from any location. Knowing an aircraft’s current technical condition through alerts, notifications, and reports, employees can spot issues pointing at possible malfunction and replace parts proactively.
- Cost reduction
The introduction of Ajatus Analytics Solution into the Indigo Airlines has resulted in cost reductions in case of baggage loss. As a rule, the damages are repaid by the industry, but when using real-time baggage tracking, data helps avoid losing, damaging, or delaying bags. On the other hand, when the fuel real-time consumption data is collected and analyzed, one can achieve an improved level of fuel use efficiency. According to IATA’s 2012, airlines spend 33% of their operating costs on fuel.
algorithms to collect and analyze flight data regarding each route distance and altitudes, aircraft type and weight, weather, etc. Based on findings from data, systems estimate the optimal amount of fuel needed for a flight.
- Customer satisfaction
With the help of predictive analysis, sentiment analysis, and travel journey analysis, Indigo Airlines keeps its customers up-to-date in real-time, promoting special offers based on their needs, habits, and unique experiences. By collecting and crunching data about customers, airlines understand passengers’ tastes and behaviour well enough to offer them transportation options they prefer and, more important, are ready to spend money on.
Likewise, when a flight delay or baggage loss occur, travellers get nervous. And if customers don’t get a response or explanation of a problem from an airline representative in a timely manner, they likely won’t choose this airline for their next trip. The speed of response to customer queries matters as much as actual steps that are taken to solve an issue.
So, travel experience is getting extremely customized and customer-oriented.
- Digital transformation
With a purpose to deliver higher standard services to the passengers, Ajatus Analytics Solution considerably transform Indigo Airlines. Some solutions have been launched to provide the perfect platform for the custom-made technology suppliers to showcase their products and services to airlines and airports in order to offer passengers a more connected travel experience.
This emerging technology is lifting the Indigo Airlines into new heights by helping them in every possible way to meet the customer’s needs, real-time performance dashboards, and predictive maintenance.
- Performance measurements
Indigo Airlines usually operate in a globally competitive environment and therefore require prompt and accurate enterprise performance measurements. Even more, Indigo Airlines is volume-driven and small variations (passengers enjoying the services, fuel spent, load carried) can multiply into major effects – therefore appropriate and timely action is critical. They also suffer substantial difficulties to produce daily/weekly reliable performance measurements.
This is where Ajatus Analytics Solution has automated production of daily activity reports such as number of passenger flown per flight/sector, distance flown which can be used to provide estimated performance measurements such as daily or weekly revenues for specific routes or sectors.
- Risk management
The truth is that global airline industry has been subjected to major catastrophes over the past years. For this reason, it’s of utmost importance for the airlines to develop various risk management models and strategies to protect themselves from negative impact of these types of events. This is exactly where Ajatus Analytics Solution has been of great assistance.
Ajatus Analytics Solution allow addressing fatigue risk that pilots are in danger due to a constant change of time zones, long duty days, scheduling changes, etc. The goal is to provide schedulers with the ability to rely on data about predicted fatigue to reduce risks in the planning phase.
- Control and verification
Indigo Airline carriers require a number of control and verification models to be able to control costs arising from its various operational activities. To enable this, the airlines has a pressing need for a complete and integrated repository of flight information data gathered from all its disparate business units. This will enable computation of various efficiency analytics, such as planed fuel usage compared with actual fuel usage per aircraft, and crew utilization. Apart from that, these problems could also be fully addressed by consolidating and analyzing relevant flight and aircraft data. Thus, creation of a 360 ° view of each flight/aircraft will allow the airlines to considerably improve their control and verification systems.
Indigo Airlines require the development of an effective and holistic forecasting model to regularly assess the impact of options, such as increasing aircraft seats available, adjusting fares, introducing new routes, etc. Forecasts should also take account of actual statistical trends and results.
Today’s travellers are more happy with the fact that Indigo Airlines know where they are, what they would like to be served on board, and what climatic conditions they will be met on arrival at their destination.
The Indigo Airlines has been keeping a tab on this information since long and now Ajatus Analytics Solution has helped them analyse it and make it useful for the customer.