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Strategies and Change Management Group 3 Kunal Das - 15020841029 Lay Thaker - 15020841030 Reema Kujur - 15020841044 Rohan Bharaj - 15020841046 Tushar Bengani - 150208410 Zuber Jinia - 15020841060

Corporate Sustainability Strategies adopted by Indigo Airlines

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Page 1: Corporate Sustainability Strategies adopted by Indigo Airlines

Strategies and Change Management

Group 3

Kunal Das - 15020841029Lay Thaker - 15020841030Reema Kujur - 15020841044Rohan Bharaj - 15020841046Tushar Bengani - 150208410Zuber Jinia - 15020841060

Page 2: Corporate Sustainability Strategies adopted by Indigo Airlines

Alignment with COP21 and INDC

• As per the recently concluded Paris Conference on climate change, 195 nations have agreed to limit global warming to below 2 degrees Celsius over pre-Industrial Revolution levels and try for 1.5 degree if possible.

• The Government of India is promoting greater use of renewables such as Solar energy, Wind energy, Hydro energy, Biomass and Alternate fuels as per its INDC report.

Page 3: Corporate Sustainability Strategies adopted by Indigo Airlines

Airline Industry affecting the climate

It accounts for four to nine per cent of the total climate change impact of human activity.

since 1990, CO2 emissions from international aviation have increased 83 per cent

United Airways has already started using farm waste as alternate fuels in short distance flights

IndiGo can become the first Indian carrier to follow United Airways and use alternate fuel

Using Biofuels can reduce the overall cost of fuel and the benefits can be passed on to the customers.

Page 4: Corporate Sustainability Strategies adopted by Indigo Airlines

Continuous Descent Method• Instead of beginning the descent 17 kilometres away, the crew began their descents some 70

kilometres away and from a height of 11,000 feet, while maintaining an angle of descent of 3° and keeping engine power changes to a minimum.

• The teams measured the results with 14 microphones placed in neighbourhoods near the airport and found that compared with conventional 767 approaches, the noise dropped by between 3.9 and 6.5 decibels. That is a drop in acoustic energy of more than half, and is noticeable to the human ear.

• This manoeuvre also saved nearly 200 kilograms of fuel on each landing.

Technology and Operations

Page 5: Corporate Sustainability Strategies adopted by Indigo Airlines

RNP SYSTEM• Indigo has collaborated with Quovadis, a subsidiary of Airbus, the Airports Authority of

India (AAI), and the Directorate-General of Civil Aviation (DGCA) to put in place required navigation performance (RNP) approach in regular airline operations

• The RNP procedure brings great benefits to both the authorities and the airline and a shorter flight path, saving 75 Km on each approach, which is approximately 400 Kg of fuel saving per landing and a corresponding amount of reduction of greenhouse gas emissions

Page 6: Corporate Sustainability Strategies adopted by Indigo Airlines

Strategies to be Implemented

Short term startegies-

• Fast turn around to maximize aircraft use

• Introducing Unbundled pricing structure

• Implementing complete E-Ticketing system

• Recycle and reuse of various products like toilet paper, paper cups, water bottles and beverage cans etc. in order to control cost

• Regular wash of engines and other peripheral

Page 7: Corporate Sustainability Strategies adopted by Indigo Airlines

Long term strategies-

• Use of alternate source of fuel like Bio fuel

• Installing Scimitar winglets

• Start a carbon offset programme

• Use ground power units instead of auxiliary power units when grounded

• Replace papers and magazines with tablets in order to seize weight

• Engine modification and upgradation to more fuel efficient aircrafts

• Implementation of advanced hybrid electrical engine by Cogar International Energy Corporation

Page 8: Corporate Sustainability Strategies adopted by Indigo Airlines

Finance

• Indigo made a net profit of Rs. 1,308 crores in FY 2014-15.

• It also raised Rs. 3,018 crores in the recently concluded IPO.

• Indigo should judiciously use this money in R&D, buying new fuel-efficient aircrafts and installing Scimitar winglets to improve their fuel efficiency and reduce costs.

Page 9: Corporate Sustainability Strategies adopted by Indigo Airlines

People

• Work from home compressed work week and flexitime options should be implemented

• Amenities like gym, pharmacy, café and ATM’s should be available inside the premises

• Start a training school for lower level employees

Page 10: Corporate Sustainability Strategies adopted by Indigo Airlines

Change Management• Remove food that is majorly wasted by the customers

(American Airlines)• Remove company logo from trash bags (Southwest)• Install lighter and thinner seats (United Airlines)• Lay thin carpets• Hire female cabin crew (Go Air)• Advertisements• Lighter food and beverage trolley and trash bins• Order aircrafts with smaller lavatories• Ditch life jackets on over land flights (Qantas)• Descaling toilet pipes regularly (British Airways)

Page 11: Corporate Sustainability Strategies adopted by Indigo Airlines

Fuel accounts for 1/3rd of the airline’s cost and every kilo shed reduces $100

from an aircraft’s annual fuel bill.

Page 12: Corporate Sustainability Strategies adopted by Indigo Airlines

Thank You