IndiGo, a low-cost carrier, is making a bold move by introducing long-haul flights and business-class seats. The airline, known for its no-frills approach, aims to target a new generation of travelers and adapt to India’s evolving aviation market. The CEO of IndiGo, Pieter Elbers, believes that now is the right time to introduce a business-class product that stays true to the IndiGo brand, catering to the changing needs of Indian air travelers.
India’s largest airline has announced a major shake-up of its operating model by introducing a business class product by the end of the year. As India’s economy and consumers evolve rapidly, IndiGo is strategizing to address the changing customer demands. In an interview with Skift, Elbers discusses his plans to transform IndiGo from a domestic giant to a global aviation player, emphasizing the importance of adapting to the evolving market.
With India being largely underserved in terms of the number of planes and seats per capita, IndiGo’s expansion is closely tied to the country’s economic growth. Elbers explains that even if the economy were to slow down, the aviation sector would continue to grow, albeit at a different rate. IndiGo’s flexible approach to capacity management and continuous evaluation of its fleet ensure that the airline can adapt to changing circumstances and maintain growth.
While IndiGo currently has a domestic market share of over 60%, expanding internationally presents a different set of challenges. Elbers discusses the possibility of forming alliances with Middle Eastern carriers to increase their share in international markets. By collaborating with foreign airlines, IndiGo aims to enhance brand awareness and attract additional passengers. Elbers maintains a pragmatic approach to partnerships, considering the business proposition for both parties.
When questioned about open skies versus protectionism, Elbers emphasizes the importance of creating a regulatory framework that serves the needs of customers and airlines. He cites the example of the open skies agreement between the U.S. and Europe, highlighting its role in fostering stronger alliances and joint ventures. Elbers believes that India’s approach to open skies will evolve over time, depending on market conditions and opportunities for mutual benefit.
As IndiGo operates multiple hubs across India, the airline must effectively manage its fleet to establish a strong network. Elbers sees the size and population of India as justifying the need for multiple hubs. By strategically deploying aircraft from different hubs, IndiGo can serve diverse markets and expand its reach. With plans to introduce new aircraft such as the A350s, IndiGo aims to enhance its global connectivity and reach new destinations across the world.
