In a totally “non-IndiGo” move if I must say, IndiGo has announced that it will soon launch a “tailor-made” Business Class product. Read on to see what this means for IndiGo and the Indian aviation market.
IndiGo Business Class launch
IndiGo started operations in 2006, with focus “on three customer promises of affordable fares, on-time performance, and hassle-free and courteous service”. The airline, after 18 years of launching operations, says that it’s now “time to take the next step in the evolution of IndiGo”.
The airline says that “considering India’s soaring economy and the evolving aspirations of Indian society, it’s time for IndiGo to redefine premium travel in India, increasing availability of this service for the nation”. It wants to create a product for those aiming to fly in Business Class for the first time in their life.
As India’s most preferred airline, we are constantly looking at innovating our service offering for our millions of customers. Over the past 18 years, India’s and IndiGo’s growth story have been closely interlinked. We believe as India gears up to become the third largest
Pieter Elbers, Chief Executive Officer, IndiGo said.
economy in the world, it’s our privilege to provide the New India even more options to choose from as they travel business. We are excited with this new phase and tailor-made product in IndiGo’s evolution and strategy and aim to further give wings to the nation, by connecting people and aspirations.
IndiGo says that its Business Class product will be available on its busiest routes as well as business routes. Around IndiGo’s anniversary in August, it will reveal more details about the product, its launch date and the routes which will feature the new product. It will be operational by the end of this year.
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What does this mean for the Indian aviation market?
IndiGo and the Tata Group are the two largest players in the Indian aviation market. The latter is in the process of consolidating its four separate airlines into two, with Vistara and Air Asia India merging with Air India and Air India Express respectively. Vistara and Air India are full service carriers (FSC) while the other two are low cost carriers (LCC).
With Vistara merging into Air India, only one full service airline will remain thereafter. 2019 saw the collapse of Jet Airways and with it came a big gap in demand and supply of premium seats for domestic air travel. Jet Airways was one of the largest FSCs in India at the time.
IndiGo has until now been a pure low cost carrier adhering to its core mission. However, I think that IndiGo always knew that the gap in demand and supply for premium seats would eventually lead them to at least consider offering a premium product. Combine this with the merger of two FSCs into one and you have a clear roadway for addressing demand for premium travel.
I feel that the conversion of IndiGo from a LCC to a “hybrid carrier” is coming at a right time. IndiGo has always been strong at understanding every market carefully and only then launching operations in the right manner at the right time. Before ordering Airbus A350s early last month, IndiGo understood the economics of operating wide-body aircraft by wet-leasing Turkish Airlines’ B777 and deploying those on Istanbul flights. What I mean to say is that IndiGo has a knack for first understanding what it wants to do and then implementing it in the right manner.
However, it does not mean that its plan to launch a premium product will be a success. It can go either ways. The economics of operating a flight will change considerably and scheduling flights with aircraft featuring Business Class will become more complex.
One thing is for sure. IndiGo is building a solid ground for itself by turning into a hybrid carrier before the A321XLRs (Extra Long Range) and A350s come in.
Featured image by Planespotters.net/Clement Alloing
What do you think of IndiGo launching a Business Class product and turning into a hybrid carrier to some extent? Let me know in the comments section below.
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2 replies on “What does IndiGo’s decision to launch Business Class mean for Indian aviation market?”
[…] service carrier in the market. IndiGo knows this and that’s why, it has announced that it will introduce a Business Class product, an announcement of which we can expect anytime […]
[…] I had written earlier in this article, IndiGo is a juncture where it has won the low-cost game already. After the collapse of Jet Airways […]