Global economic review
The CY 2022 witnessed easing of Covid-19 restrictions worldwide leading to a notable rise in household consumption across major economies. The third quarter was a bright spot with robust economic activity on the back of stronger-than-expected private consumption, investment amid tight labour markets and fiscal support exceeding all expectations. Demand in most sectors, particularly in the services sector including tourism, witnessed growth. The year also saw geopolitical tensions starting in the first half which caused inflation to rise due to which the central banks across countries resorted to somewhat synchronised monetary tightening.
As per World Economic Outlook (WEO) , April 2023 published by the International Monetary Fund (IMF) global real GDP growth is expected to moderate further from 3.4% in CY 2022 to 2.8% in CY 2023. Emerging markets and developing economies are likely to remain robust and grow at 3.9% in CY 2023 which is a marginal decrease from 4.0% in CY 2022.
Indian economic review
As per the IMF, for FY 2023 India was one of the fastest growing economies with real GDP growing at 6.8% year-on-year. During the year, the growth was fuelled by private consumption, growing manufacturing activity and the revival of the service sector. The Government of Indias sustained focus on infrastructure investment drove economic growth leading to employment generation. The service sector was observed to have fully recovered from the weakness suffered during the pandemic.
Like many other Central Banks across developed economies, the Reserve Bank of India (RBI) increased the repo rate on multiple occasions since May 2022 amounting to a cumulative increase of 250 bps in FY 2023. These efforts managed to bring retail inflation below the upper tolerance target set by the RBI in November-December, 2022 before breaching the threshold of 6% in January-February, 2023. In the most recent review, the Monetary Policy Committee unanimously decided to keep policy repo rate unchanged.
Global aviation industry
Global aviation is on a path of recovery from the pandemic years. The swift reopening of air transport markets over the course of CY 2022 was matched by the appetite for travel among consumers across most parts of the globe.
In CY 2021, the recovery of demand from the pandemic years was driven primarily by large domestic markets. During CY 2022, the global aviation industry inched up further on its road to recovery despite operating in a challenging macroeconomic environment on the back of inflationary pressures, rising interest rates and rising fuel prices. The continued recovery was observed in intra-
Europe, Americas and Transatlantic traffic, which was significant (nearing CY 2019 levels) despite the Omicron wave at the start of the year.
As per International Air Transport
Association, recovery in global air transport demand for the CY 2022, as measured by Revenue Passenger Kilometres (RPK), stood at 68.5%
Purchasing Managers Index manufacturing remained robust at 56.4 in March 2023 recording expansion for 21st consecutive month. PMI services also remained in the expansion zone at 57.8 in March 2023 and February 2023 witnessed the strongest expansion in 12 years at 59.4 driven by favourable demand conditions and new business gains.
India continues to maintain its position as one of the fastest growing economies backed by robust domestic demand, fiscal expenditure and healthy corporate profits. As per IMF, real GDP growth in India during FY 2024, is expected to be
While certain regions may witness a slowdown, the pent-up demand and greater demand for travel imply that CY 2023 will continue to see a robust worldwide recovery, with Asia, in particular, driving significant growth and opportunities in the global aviation industry. The desire and need to travel by air remain strong therefore robust demand will be a common occurrence wherever travel restrictions are taken down, and routes are re-opened. According to IATA, global passenger demand is predicted to reach 85.5% of CY 2019 levels in CY 2023, up from 68.5% in CY 2022.
Indian aviation sector
After two years of muted operations, the Indian aviation is showing recovery as air traffic climbed by 69% year-over-year to161 million passengers in FY 2023. Further, domestic traffic reached pre-Covid-19 levels in February 2023, demonstrating strong turnaround from the dampened travel sentiment witnessed due to the pandemic.
India is now the worlds third-largest domestic aviation market, trailing only the United States and China. Indian aviation is expected to undergo massive expansion and transformation in the years to come on the back of strong economic growth, favourable demographics, and infrastructure investments.
Under penetration and favourable demographics
Indias domestic passenger market witnessed an impressive 13% CAGR over FY 2010 – FY 2019, yet India still remains highly underpenetrated in terms of air travel. With rise in disposable incomes, rapid urbanisation and increase in working class population, the growth in the demand for air travel is expected to persist.
Pivotal role of Tier 2 and Tier 3 cities
Historically, economic activity in India was mainly concentrated in a small number of cities primarily categorised as Tier 1. Greater spread of economic activity, rising income levels and expanding population in Tier 2 and Tier 3 cities are providing for a noticeable shift in this concentration. In line with this development, the Ministry of Civil Aviation (MoCA) is focusing on expanding and modernising the aviation network in Tier 2 and Tier 3 cities. IndiGo remains committed to enhance connectivity to these Tier 2, and Tier 3 cities.
Expansion of regional connectivity
Under the UDAN scheme, the Government of India plans to develop
100 new airports
by 2024 and operationalise
1,000 regional routes.
Airlines are deploying new capacity to these previously unexplored and inaccessible destinations and routes. Union Budget allocation for the FY 2024 for the Regional Connectivity Scheme (‘UDAN) amounted to Rs. 1,244.07 crore. Till March 31, 2023, more than c.12 million passengers have travelled as beneficiaries of this initiative.
Increased investment in infrastructure
The Government of India has also announced plans to invest Rs. 1 trillion on airport development and modernisation over the next five years. In addition, the government plans to increase the number of airports from 140 to 220 by 2025. Inauguration of two major secondary airports such as the Noida International Airport and Navi Mumbai International Airport, will add substantial capacity to the already congested primary airports in Delhi and Mumbai respectively. With a keen interest from the private sector, it is evident that both the government and business sector are making significant investments in airport infrastructure in India. This will improve airport facilities, increase capacity, and enhance the overall passenger experience, thereby driving growth in the aviation industry.
Investments in capacity
Compared to an operational fleet of around 600 aircraft at the end of FY 2023, it is estimated that a fleet of
4,000 aircraft would
be needed in India within the next two decades to match anticipated growth in demand. Currently, the domestic players collectively have an outstanding order book of c.1,800 aircraft, which is expected to support some of this expected growth in demand.
[Source: CAPA and Cirium]
Huge potential in international market
A large chunk of outbound and inbound international passenger demand in India is currently catered to by foreign carriers via international hubs, which in turn presents an opportunity for domestic carriers to capture a higher share of this fast-growing market.
Incorporated in 2006, IndiGo is the largest airline in India with 1,800+ daily flights covering 78 domestic destinations and 26 international destinations. IndiGos purpose is giving wings to the nation, by connecting people and aspirations.
Within a span of 16 years, IndiGo has become the 7th largest airline in the world measured by daily departures and the first Indian airline with a large fleet of 300+ aircraft. With its four customer promises — affordable fares, on time performance, courteous and hassle-free service and an unparalleled network — IndiGo is one of the most reliable airlines in the world.
In this post Covid-19 world, IndiGo seeks to build on its success story with its three pillars of growth strategy – Reassure, Develop and Create. IndiGos vision is to be Indias preferred airline for connectivity in and with India, and by doing so, being one of the leading airlines in the world.
The Indian economy is expected to grow strongly in the coming years and aviation will play a pivotal role in this growth. Having been through a period of robust growth since its inception, IndiGos future is full of attractive opportunities.
IndiGo serves 104 destinations and connects c.500 direct city pairs. It provides an unparalleled reach connecting people and aspirations. In addition to being a leading player in the domestic market, IndiGo has an increased focus on international markets. Going forward, IndiGo will leverage its simple yet well-executed product and an unparalleled network to make international expansion as the next leg of its growth. Further, IndiGo has strategic partnerships with seven international airlines and continues its discussions with more global airlines.
The Company remains conscious that low operating costs complemented with a well-executed product and fleet strategy are fundamental to success in the airline business. IndiGo will continue to keep these at the core of its strategy while building capabilities to serve more customers year-on-year, staying true to its goal of ‘Giving Wings to the Nation. With a large order book of aircraft, including XLRs, and investments in people, processes and technology, IndiGo aspires to double in scale and size by the end of this decade.
|ASK (in millions)
|RPK (in millions)
|Passenger Load Factor (%)
|Number of passengers (in thousands)
|Number of destinations served as of the period end*
|Total number of flights
|Number of aircraft at period end
|Net Profit Margin
|CASK Ex-Fuel (H)
|Return on Net Worth*(%)
Passenger ticket revenue: Passenger ticket revenue increased by 119.3% from Rs. 219,715.94 million in FY 2022 to Rs. 481,743.71 million in FY 2023.
Revenue from ancillary products and services: Revenue from ancillary products and services primarily include cargo, excess baggage, special service requests, ticket modification and cancellation, in-flight sales and tours.
Revenue from ancillary products and services increased by 47.6% from Rs. 36,861.26 million in FY 2022 to Rs. 54,415.21 million in FY 2023.
Other income: Other income is primarily comprised of financial income on cash and other non-operating income. Other income increased by 97.8% from Rs. 7,255.98 million in FY 2022 to Rs. 14,349.65 million in FY 2023.
Revenue per Available Seat Kilometre (RASK): RASK increased by 29.0% from Rs. 3.73 in FY 2022 to Rs. 4.80 in FY 2023, driven by increase in yields and passenger load factors.
Total expenses increased by 71.2% from Rs. 328,102.09 million in FY 2022 to Rs. 561,858.03 million in FY 2023.
Aircraft fuel expenses: Aircraft fuel expenses increased by 143.9% from Rs. 96,952.36 million in FY 2022 to Rs. 236,460.17 million in FY 2023, against 62.5% increase in capacity, primarily due to increase in ATF prices.
Aircraft ownership cost: Aircraft ownership cost comprises of aircraft and engine rentals, supplementary rental and aircraft maintenance cost, depreciation and amortization, and net interest expense. Aircraft ownership cost increased by 16.9% from Rs. 133,914.19 million in FY 2022 to Rs. 156,609.64 million in FY 2023.
Employee benefits expense: Employee benefits expense increased by 37.5% from Rs. 34,864.43 million in FY 2022 to Rs. 47,947.52 million in FY 2023.
Foreign exchange (gain)/loss: Foreign exchange losses increased from
Rs. 9,408.38 million in FY 2022 to Rs. 29,597.73 million in FY 2023.
Other expenses: Other expenses increased by 72.9% from Rs. 24,563.07 million in FY 2022 to Rs. 42,469.61 million in FY 2023.
Cost per Available Seat Kilometer (CASK): CASK increased by 5.0% from Rs. 4.60 in FY 2022 to Rs. 4.83 in FY 2023, primarily driven by increase in fuel cost and foreign exchange, offset by higher capacity deployment.
The Company reported a net loss of Rs. 3,057.89 million in FY 2023 against a net loss of Rs. 61,618.45 million in FY 2022.
IndiGos total cash increased by 28.5% to Rs. 234,243 million as of March 31, 2023, comprising of free cash of Rs. 121,948 million and restricted cash of Rs. 112,295 million. Total debt for the Company was Rs. 448,542 million, including capitalised operating lease liability of Rs. 415,477 million, as of March 31, 2023.
The Company has adopted a robust risk management policy, approved by the Board of Directors, to identify, evaluate and mitigate business risks and protect stakeholder interests.
Set forth below are some of the risks that may potentially have an adverse impact on business, financialresults, performa and nce outlook, along with the initiatives taken by IndiGo to mitigate their impact.
• Operational issues with aircraft engines: IndiGo has been experiencing supply-chain issues related to the availability of spare engines for its NEO aircraft, which has impacted its operations. Failure to obtain timely deliveries of essential aircraft parts, such as spare engines, can materially impact its financials.
IndiGo is working closely with airframe and engine manufacturers to ensure there is minimum economic and operational impact. Additionally, to meet the interim operational challenges, IndiGo has taken various measures such as lease extension of aircraft due to be redelivered, deferring phasing out of CEOs, getting aircraft on ACMI, etc. to reduce operational disruptions.
• Competition in the airline industry:
The airline industry is highly competitive. IndiGo faces competition from other low-cost carriers, as well as full-service carriers that operate on similar routes.
To remain competitive, IndiGo continually focuses on cost leadership, industry-leading customer service and on-time performance. In addition, IndiGo continues to work on launching new markets and flights which enhance connectivity across the network. IndiGo also optimises its schedule to maximise the utilisation of its assets.
IndiGos codeshare partnership with leading global airlines gives the customers added flexibility and comfort and helps to extend reach beyond its directly served destinations. Additionally, a digital transformation journey is underway in IndiGo including personalising digital experience for customers, adding AI driven capabilities and adopting world class digital platforms. Further, IndiGo is in the process of launching a customer loyalty programme.
• Pandemic risk:
An outbreak of a communicable disease (as with the recently witnessed Covid-19, pandemic) across the globe causes air travel to inevitably become the subject of governmental or regulatory restrictions and limitations, due to the potential adverse impact on infection rates caused by unrestricted movement of people. Global and national efforts to limit the spread of any pandemic can result in cessation or disrupted operations, which can potentially lead to erosion of IndiGos reputation and decrease in demand for travel. The adverse impact of Covid-19, or possible outbreaks of any other pandemic or similar public health threat in the future can significantly affect operations and result in financial losses.
IndiGo is committed to ensure safety of its customers and employees at the forefront. During Covid-19, IndiGo acted in accordance with applicable national and international guidelines and regulations (including implementing Covid-19 behaviour protocols such as wearing of face masks, PPE kits for customers, employees including crew, as applicable) in order to ensure the safety of its customers and employees. It follows well-established SOPs and has robust systems to deal with any unforeseen outbreak. IndiGos strong focus on cost-control, maintaining a large, modern and efficient fleet, and its wide network allow the airline to weather such unexpected calamities better than most competitors.
• Exceptional variation in fuel prices:
Aircraft fuel expenses are the most significant expense of IndiGos total cost. The price of fuel can vary due to numerous economic and political factors and events that govern them. IndiGos operating results are negatively impacted by any adverse movement in fuel prices.
Almost 80% of IndiGos fleet comprises NEOs which are c.15% more fuel efficient compared to the
A320 CEOs. IndiGo maintains a young fleet resulting in lower fuel consumption. Additionally, higher seats in NEO family aircraft help in reducing fuel CASK.
Further, IndiGo focuses on improving fuel efficiency of its fleet to bring down the operating costs. The Company also adopts various fuel-efficient practices such as single engine taxi and optimising flight path.
• Adverse movement in foreign exchange:
IndiGos costs including aircraft and engine lease rentals, aircraft and engine maintenance, and aircraft insurance are denominated in foreign currency. Adverse movement in foreign exchange may impact profitability.
The currency movement and its impact on the profitability is regularly monitored. Further, IndiGo is focused on enhancing its international operations along-with adding global strategic partnerships. This will enable it to increase revenue in foreign exchange that will offset its currency exposure. Also, the foreign exchange liability, owing to supplementary rental liability, is partially hedged by deposits maintained in foreign currency.
• Environmental, social and governance risk:
As the focus of government and regulatory organisations on environmental impact of air travel has increased, there are risks of higher costs levied on the industry to offset its carbon footprint. Beyond carbon emission, other sustainability efforts such as noise mitigation and waste management have been gaining increased focus from various stakeholders. As more institutional investors are considering ESG as a factor when making investment decisions, this could result in lower investment appetite in the aviation sector in general.
The Board and the Management of the Company have embraced ESG as a strategic priority. ESG is being integrated formally in each of the functional aspects of the operations. IndiGo has made pioneering efforts by being one of the first airlines in the to invest in latest technology aircraft
NEOs which are c.15% more fuel efficient than the old generation aircraft. IndiGo also operates a very young fleet with average fleet age around 3.5 years. As a result, the carbon and noise footprint are among the lowest in the world.
IndiGo is an equal opportunity employer, and its gender mix compares with global peers. Taking a lead in efforts towards ensuring a gender neutral workplace, it has the largest number of women pilots globally. The Companys unparalleled network provides connectivity to multiple regional cities. IndiGo connected 56 city pairs and flew more than 8 lakhs passengers last year under UDAN scheme in FY 2023. This effort to link remote stations via air connectivity serves a national and societal need.
IndiGoReach, is the CSR arm of the Company through which programmes are implemented to contribute towards the objective of sustainable development for communities. IndiGos CSR strategy has four focus areas which covers children and education, women empowerment, environment- friendly initiatives, and heritage. Further, various governance measures are in place in IndiGo, which are being continually monitored and improved upon.
IndiGo is also guided by a roadmap for ESG, beginning with an industry- relevant ESG report, published alongside this annual report, which catalogues a wide range of initiatives across the three dimensions of ESG. IndiGos management and Board are firmly convinced that its ESG efforts will deliver a strategic advantage, whereby all stakeholders will come to perceive IndiGo as a responsible airline of our times.
• Inability to recruit and retain key talent:
IndiGos business requires it to attract and retain highly skilled, dedicated, and efficient management personnel and other critical employees. Any shortfall in the availability or inability to hire, train or retain qualified employees world may have an adverse impact on operations and growth plan.
To maximise talent retention, IndiGo has a progressive Human Resource policy and a succession plan in place for crucial leadership positions. Additionally, to ensure there is no shortfall of crew, the Company has developed a manpower planning process which is complemented by IndiGos recruitment and training teams.
For critical functions like Engineering and Flight Operations, IndiGo has in place trainee programmes that continue to hone the skills of our employees. IndiGos state-of-the art learning academy, ifly, continues to be at the forefront of training to deliver an aviation-ready workforce. These initiatives, backed by the fast-growing population of job seekers in India, will allow IndiGo to access and develop the talent pool for its operations.
• Employee related risks:
Labour actions and strikes can cause disruption to operations and profitability. This may also lead to negative impact on employee relations and morale.
IndiGo engages in multiple programmes to develop talent and builds employee connect through a structured process including surveys. With ‘6e Speaks — a quarterly pulse feedback programme — IndiGo aims to get inputs and feedback on engagement levels of its employees and based on the insights from the survey, consistent actions are taken to mitigate this risk. Further, it has implemented rewards and recognition programmes to boost employee morale and honour the most valued employees.
IndiGo is also taking several initiatives to ensure physical and mental well-being of its employees with the launch of IndiGood Life. IndiGo believes that an organisation that listens to and cares for its employees will benefit from an empowered and motivated workforce.
• Airline safety:
Incident or accident leading to personal injury and/or loss of life, damage to aircraft, increasing cost due to global aviation incidents can affect the Company negatively.
Safety management is a key priority at all levels at IndiGo. The
Company has a well-defined safety management system which is based on a strong safety policy, safety risk management, safety assurance processes and safety promotion.
IndiGo tracks a monthly report on major flight operations and other operational performance and incident trends, as well as other multiple Safety Performance Indicators on a regular basis. It also conducts safety audits regularly. Additionally, IndiGo is a member of IATA Incident Data Exchange Programme, to ensure its safety performance is at par with, or ahead of, global peers. In summary, a modern fleet, operated by well-trained professionals and governed by technology-enabled operations will contribute to improved safety performance.
• Airline security:
IndiGos response/ preparedness for aircraft hijacks, as well as insider threats, such as exploitation, tampering, fraud, espionage, theft, and sabotage due to malicious intention (internal/ external).
As a security measure, IndiGo does thorough background checks of all employees who have access to restricted areas. The Company has a Vigilance Team at all major stations to prevent theft, fraud, and malicious intent which conducts spot-and- top checks, including random screening of staff and surprise check of AEP (Airside Entry Permit). It conducts periodic background verification during the AEP renewal process. It also has an approved security programme which has SOPs to deal with hijack and other security contingencies and works closely with Civil Aviation Security (BCAS - Regulator), Central Industrial Security Force (CISF), and the police. IndiGo also has a dedicated trained team for ‘Emergency Response, which is adept to deal with any emergency in accordance with laid down procedures.
• Breaches in IT/ Cybersecurity:
Airlines are heavily dependent on IT and complex network technology. These complex systems and technologies are subject to interruptions and delays caused by catastrophic events, acts of war or terrorism, power loss, computer and telecommunications failures, cyberattacks and security breaches and similar events or disruptions. Any such system interruptions or security breaches may disrupt normal business operations, potentially leading to loss of business, subjecting us to data breach, and can result in multi-pronged impact including regulatory actions, operational interruption, reputation loss, intellectual property loss and so on.
IndiGo takes the cybersecurity threat diligently. Its cybersecurity structure is aligned with industry standards such as National Institute of Standards and Technology and ISO/ IEC 27001. It follows the ‘Defence in Depth approach to cybersecurity and has implemented controls for prevention, detection, and response to cyberattacks. IndiGo is continuously updating its technology and improving its processes and protocols to maintain and evolve its cybersecurity framework.
• Changes in the Government regulations:
The Civil Aviation industry in India is regulated by the MoCA, including BCAS, the Directorate General of Civil Aviation (DGCA), the Airports Authority of India (AAI), and the Airports Economic Regulatory Authority (AERA) of India. The regulations are extensive, complex and cover all major aspects of airline business and operations, including training, licenses, aircraft acquisitions, routing and passenger facilitation and so on. Any changes in such regulations, or the imposition of additional restrictions and conditions, can affect business and operations.
IndiGo keeps itself abreast of all regulatory changes and ensures timely compliance, as amended from time to time. The Company maintains close communication with the regulatory authorities and airports to provide its customers a safe, seamless, timely and affordable domestic and international air travel. IndiGo is a member of the Federation of Indian Airlines which works as an industry forum for voicing and submitting concerns/response of its airline members in policy and regulatory matters relating to the Aviation industry.
• Reputation risk:
IndiGo is exposed to reputation damage if any of its aircraft is subject to an emergency, accident, terrorist incident or any other disaster. Further, any adverse experience or harm arising to customers or vendors, can also potentially lead to damage to IndiGos reputation.
To effectively manage any adverse event, IndiGo has a detailed crisis response mechanism which clearly outlines the flow of communication and protocols. IndiGo also has a dedicated emergency response team, and processes and procedures in place to immediately handle such events.
As a purposeful organisation, IndiGo truly believes in the value of having motivated people to deliver superior customer satisfaction. The process starts at recruitment where IndiGo seeks to attract diverse and highly motivated aspirants through a structured process. The recruitment team evaluates the knowledge, skills, and abilities of the candidates and conducts aptitude, language, and psychometric tests.
The Company constantly reviews its business priorities and supports the workforce with the required skills, knowledge, mindset, and tools to stay ahead in meeting customer expectations. It continues to execute learning through digital platforms, classroom sessions and practical orientation at the airports and on the aircraft.
IndiGos learning academy ‘ifly is entrusted with creating the IndiGo spirit, enriching IndiGo culture and training employees on business priorities and future leadership behaviour. For example, programmes such as ‘Career Buddies support aspiring employees in making the right career decisions within the organisation, creating a culture of growth. ‘Leadership Runway, a professional skill development programme for senior cabin crew, equips them with highly transferable skills for future roles within the organisation.
Beyond these, ifly continues to develop hundreds of cabin crew via new employee training, as well as refreshers on an ongoing basis.
IndiGo has several programmes aimed at developing pilots from within the organisation and from its employees families. ‘6e Family Fly, is a programme aimed at supporting members of its employees families to be pilots, and ‘6e Fly High is aimed at supporting its own employees desirous of becoming pilots. With its steady induction of graduating ‘Cadet Pilots and continuous programme of internal promotions to Captain positions, IndiGo believes that it has a robust practice of developing pilot talent, something that is key to the Companys future.
With the changing environment, IndiGo draws inputs from ‘6ESpeaks- the employee engagement survey, on an annual and quarterly basis and devises action plans based on these inputs.
IndiGo continues to promote diversity and inclusion in the workplace. For this, we create learning programmes and awareness campaigns to help employees understand the qualities of inclusive leaders and recognise biases that take place in critical processes like hiring and career progression. Also, we demonstrate the appropriate way to deal with people of different backgrounds. IndiGo has 269 women in people management roles and 643 women pilots as of March 31, 2023, making it the airline with the most female pilots in the world. As a part of IndiGo inclusivity agenda, it has launched IndiGo take Off 2.0 that invites and encourages women who have taken career breaks to return to work. In addition, it also has about 86 employees with disabilities. IndiGo hopes to onboard 100 more people with disabilities in FY 2024.
IndiGos commitment to a high trust, high performance culture has been reinforced with IndiGo being certified as a ‘Great
Place to Work by the Great Places to Work Institute for three years in a row, since IndiGo restarted participation in CY 2021. This further strengthens its position as one of the best workplaces in India, offering a safe and inclusive work environment.
IndiGo has recently launched 6E Breez — the revamped intranet platform which allows employees to stay abreast with the latest Company updates, get access to special discounts, offers and experiences. A common platform for information related to IndiGo employees.
As of March 31, 2023, IndiGo employed a dynamic set of 32,407 employees, which included 4,407 pilots and 8,567 cabin crew.
Internal control systems and their adequacy
IndiGo has put in place adequate internal control systems commensurate with its size of operations. IndiGos internal control procedures are frequently reviewed and updated to ensure compliance with various policies, practices, and statutes in keeping with the organisations pace of growth and increasing complexity of operations. IndiGo maintains a system of internal controls designed to provide reasonable assurance regarding the following:
An independent internal audit (employing globally acclaimed firm) is carried out to ensure the adequacy of the internal control system and adherence to policies and practices. The scope of the internal audit activity is guided by the annual audit plan, which is approved by the Audit Committee of the Board. The Audit Committee of the Board of Directors regularly reviews the reports submitted by the independent internal auditor and the adequacy and effectiveness of internal controls.
IndiGo takes a digital flight
The digital transformation journey is well underway at IndiGo. A massive project portfolio of digital projects is currently at various stages of execution, aimed at rapidly digitising IndiGos end-to-end business processes, with state-of-the-art architecture and technology. World class, cloud native and industry standard platforms are being deployed to digitise core airlines processes and programmes such as Hire to Retire, Airport workforce planning and management, Procure to
Pay, Electronic Flight Briefing for flight crew, Customer Relationship Management, Training Management, Interlining, Codeshare and several other. This will ensure IndiGo has a solid, future ready, digital foundation at the core.
The complete overhaul and re-write of IndiGos direct channels (Website and
Mobile) is nearing closure. This will enable IndiGo to rapidly respond to customer needs, personalise the digital experience and power an experimentation capability that allows sensing customer preferences and real-time feeding them into product development pathways. Our goal of delivering our customers a hassle-free and delightful experience will be bolstered with these new digital initiatives.
6E Breez, IndiGos digital employee experience platform has been launched, not only providing 1-click employee services but also curated e-commerce deals, exclusively for IndiGos staff. An Enterprise Data Hub programme has been launched to build IndiGos data, analytical and AI capability, establish data as an enterprise asset, deliver business insights and analytics at speed, and enable
AI driven differentiating competitive capabilities. IndiGos marketing has adopted a ‘digital first strategy and approach. Innovative marketing assets such as 6E Tours, Made in IndiGo, Love You Too and others, help build a strong engagement and emotional bond with IndiGo customers. Apart from this, foundational work has commenced for IndiGos loyalty programme, experimenting with new digital business models as well as engaging with the tech start-up ecosystem.
IndiGos digital flight had a robust lift off this year and is now surging ahead at Mach speed.
Certain statements in the Management Discussion and Analysis section concerning future prospects may be forward-looking statements which involve a number of underlying identified / non-identified risks and uncertainties that could cause actual results to differ materially. In addition to the foregoing changes in the macro-environment, global pandemic like Covid-19 may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter-alia, to the Company and the environment in which it operates. The results of these assumptions made, relying on available internal and external information, are the basis for determining certain facts and figures stated in the report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forward-looking statements represent only the Companys current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.
|On behalf of the Board of
|InterGlobe Aviation Limited
|Dr. Venkataramani Sumantran
|Mr. Anil Parashar
|Date: May 18, 2023