Here is the first article selected to be featured in the International Marketing course posts which present the marketing plans of different countries. This first article on the Indian budget carrier IndiGO was written by Kati Streuber, one of our DBA students from Germany. Enjoy!
The Indian budget carrier IndiGO has placed the second-largest order in aviation history for commercial aircrafts.
At the 2011 Paris Airshow in France, IndiGO ordered 150 models of the fuel-efficient A320neo, and 30 models of the A-320, worth a total of $15bn. IndiGO benefits from the tremendous growth rate of the Indian budget flight industry and is hence steadily increasing its fleet size. The reasons for this significant growth rate are the shift from railways to airplanes much due to the enormous growth of the Indian middle-class and the increased need for low-cost air travel. This historic order is yet another sign of the dramatic growth of the Indian economy. Another stunning factor about the size of this purchase is that the airline was founded 5 years ago!
The ranking of the IndiGO purchase is only topped by Malaysian AirAsia, which ordered 200 A-320 worth more than $18bn just a few days after IndiGO made their historic purchase in the aviation industry.
IndiGO gives the perfect example of the strength and opportunities of the Indian market, which also magnetizes foreign trade partners. After President Obama’s visit to India, the US announced that they would like India to become one of their Top 10 partners by further increasing trade and investment. Currently, India is currently ranked 12 of the US trade partners.
It is only a matter of time when the next economic record will be broken by India, so stay tuned!
