IndiGo set for huge growth – even without a new order |

India’s low-cost airline IndiGo said on Friday that it will enter the US market on June 15, when it activates the codeshare agreement with Turkish Airlines to four destinations. New York JFK, Washington, Chicago, and Boston will see daily services until the start of the winter season. This marks the first time that IndiGo extends its network to the US. The carrier has bold plans for future growth, CEO Pieter Elbers explained during a media roundtable on the sidelines of the IATA AGM in Istanbul earlier this week. IndiGo set for huge growth - even without a new order. Elbers is IndiGo’s CEO since September, having joined the airline after thirty years in different roles with KLM. Early last year, his term as CEO of KLM was not extended, which opened the way to a new chapter in his career. The two quarters under the helm of the Dutchman have been profitable, with Q4 (January-March) even seeing a record-high Rs 9.19 billion net profit. IndiGo ended FY23 with an Rs -3.1 billion net loss. With India becoming the third-biggest economy in the world within five to seven years and with the largest young population that is wealthier than previous generations, air travel is on a steep rise. Low-cost carriers have contributed to that, with IndiGo itself carrying over 500 million passengers since its inception in 2006. Delhi, and Mumbai will get new airports, Goa just opened, and there are advanced plans for upgrades and the construction of 200 airports, often in regions that had no air connectivity. Underserved aircraft fleet But as Elbers pointed out, India is also underserved when it comes to the aircraft fleet, with just some 400 aircraft for 1.4 billion citizens. This will change soon, with the Indian authorities expecting to induct 100 aircraft per year for the next ten years. The Air India order for 470 aircraft announced earlier this year is a confirmation of this growth. IndiGo itself is rumored to be close to signing an order for up to 500 aircraft, which could even include its first owned widebodies. The carrier recently started operating the first Boeing 777-300ER in full IndiGo livery to Istanbul, but this aircraft is wet-leased from Turkish Airlines. A second has already joined the fleet, with four more to come. IndiGo recently launched services to Istanbul with this Boeing 777-300ER in full livery, although the aircraft has been wet-leased from Turkish Airlines. (IndiGo) On the topic of a new order, Elbers was unwilling to answer any questions, as he made clear at the start of his presentation. He only said that IndiGo has an outstanding order for some 500 aircraft that need to be delivered. Airbus data for May show that IndiGo has taken delivery of 166 out of 340 A320neo’s and of 85 out of 390 on order. “This will ensure a steady flow of aircraft coming in for the next seven years. This will double our size by the end of the decade.” In FY24, some forty are scheduled to be delivered, but that depends on the supply chain. Last year, some aircraft arrived late, but the airline was able to maintain its planned schedule by extending the lease of existing aircraft. “Of course, we would like to have the planes, as we are in a market that is fast-growing. But we have some flexibility in dealing with some of the challenges.” Capacity this year will increase by a high mid-teen percent. Growing the network IndiGo currently operates over 1.800 daily flights to 78 destinations within India out of twelve hubs. “We will keep adding destinations and with more airports opening, we will add more.” This will help it trust the number of passengers carried to around 100 million this year, up from 86 million in FY23. And this is already up fourteen percent on pre-Covid levels. “So we have not recovered from Covid, we actually exceeded that.” The market share in India was 56.8 percent. But Elbers is growing that network outside India, which includes eleven destinations in the Middle East, Southeast Asia, Africa, and to 33 destinations in Europe. When it takes delivery of the first of “a couple of dozen” Airbus A321XLRs some two years from now, IndiGo will get access to more destinations. Elbers mentioned Asia, Tel Aviv, and Italy, but there are more new routes in the planning. IndiGo will induct some 500 aircraft until 2030 into the fleet. Pieter Elbers was unwilling a potential order for another 500. (IndiGo) The codeshare with Turkish Airlines via Istanbul opens up further growth opportunities. This doesn’t mean that IndiGo wants to go long-haul on its own, Elbers pointed out: “We have the ambition to further internationalize. With the standard A321neo and -LR, you can cover a significant part of the world’s population. (…) We haven’t decided yet where to fly. We have a rough sketch of the network, but we can go pretty far into Europe with the -XLRs.” Ups and downs Indian aviation has gone through ups and downs, with airlines coming and going. Air India is set to start a new chapter now that it has Tata Sons and Singapore Airlines as new owners. Jet Airways failed and hasn’t made a restart, SpiceJet seems to be in unstable waters. And then there is the situation of Go First, which has been grounded since May due to a combination of engine issues and financial problems. “There is going to be more maturing of the market, and with that more stability and more competition,” says Elbers. IndiGo’s position is stronger than that of many competitors, but it has no intention to take over its troubled rivals. More likely, the market will sort it out itself. “We will just see what is going to happen and focus on running our operation and make sure that all aircraft that are coming in can operate.” With so much growth, it could be logical the think that sustainability is not very prominent on the agenda of India’s aviation. “That’s just wrong, there is a lot being done. There is a lot of focus on recycling, the investment in hydrogen, sometimes at higher levels than in some European countries. They talk a lot but do not necessarily translate that into real action. And in a country with 1.4 billion population, which needs to be educated, fed, and healthcare, you have to find a good balance in that discussion. I am very impressed with how this is done.”

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