The difference seems to be blurring between LCCs and FSCs in terms of fares. How is IndiGo different there?
We have a fully automated process, which doesn’t need human intervention and knows how much inventory we have. Flights get opened several months in advance and the machine decides how the inventory is to be sold the day it gets opened. As you get closer to the day of departure, the machine determines what the fares would be.
The machine develops artificial intelligence over a period of time. Say, for a Delhi-Baroda flight, which has been in operation for five years and flies at the same time, the machine knows what the flight looks like every single day. So the machine looks at December 1 and, what is sophisticated is that the machine will determine by looking at the data of the past five years how that plane has performed on that day every year. So the machine might like to hang on to a little bit of inventory close to the departure and sell it later for a higher price or may sell all tickets on a cheaper price in advance thinking that there won’t be an opportunity later.
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The article is dated 2011 
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