- SUMMARY
- IndiGo is looking to foray into those international markets, which are lesser known to Indians.
- Other than Mauritius, it is looking to enter into markets like Thailand and Central Asia.
- The A321XLR will allow the airline to continue with this strategy in the long haul market.
IndiGo, the largest airline in India is getting ready for the next phase of internationalization. It is aiming to deploy 30% of its overall capacity on international flights. According to the Chief Executive Officer of IndiGo, Pieter Elbers, the airline is focusing more on connecting India to lesser-known international destinations.
IndiGo Developing Presence in Lesser-Known Markets
During a discussion with Reuters, CEO Pieter Elbers said that in the next phase of international expansion, the airline will be expanding on two fronts. On one side, it is looking to foray into lesser-known international destinations. At the same time, it will be enhancing its presence in already established markets like Singapore, Dubai, and Abu Dhabi.
In 2023, the airline launched services to various Central Asian cities, which many Indian travelers were not aware of. The airline developed these routes and is now garnering a good response. Earlier, fewer flights were available to cities like Baku, Almaty, Tashkent, and Tbilisi, but with IndiGo entering these markets, travel choices have increased for passengers.
Former CEO Ronojoy Dutta earlier said that the airline became aware of the demand from the CIS market during the COVID-19 pandemic. When scheduled services across the globe were suspended, a huge charter demand was witnessed in this market.
Elbers added that the airline is looking at such lesser-known places in Thailand and Central Asia. More and more Indians are aspiring to fly internationally. He believes that the airline has a great opportunity for entering these unknown markets.
The airline is backed by a strong balance sheet, which makes such moves possible. In fiscal 23-24, it reported a profit of almost $1 billion. According to experts, the CIS push of IndiGo has attracted a large section of Indians, who want to travel overseas but cannot afford to do so.
IndiGo: Next Phase of International Expansion
By the end of 2025, IndiGo will add 10 new domestic and international destinations. Mauritius and Jaffna are all set to welcome IndiGo. As per media reports, the airline will connect Chennai to Jaffna. Elbers himself confirmed the launch of operations in both cities. In addition, he said that soon, IndiGo will add one more Thai airport to its network. There are various options like Chiang Mai, Samui, Krabi, etc. It will be interesting to see which destination IndiGo goes for.
By 2030, the airline is aiming to double its fleet and deploy around 30 percent of its capacity on international routes. Currently, the number is 24%. Elbers anticipates that the airline will meet this target sooner than 2030.
In 2025, IndiGo will receive the delivery of the first Airbus A321XLR, which will enable the airline to foray into markets like Europe and Far East Asia. It is already serving those markets via codeshare agreements with different airlines, specifically Turkish Airlines in the European region. By the end of this year, it will add business-class products on a few busy business domestic routes.
IndiGo will be hosting the IATA Annual General Meeting in 2025 in New Delhi. After 42 years, IATA AGM will be held in India. For the 2024-2025 term, IndiGo CEO Pieter Elbers has been appointed as the Chairman of the IATA Board of Governors.
Conclusion: IndiGo International Expansion
IndiGo is looking to enter into those international markets, which are lesser known or unknown among Indian travelers, but have huge potential. It is looking to add one more airport in Thailand. Mauritius and Jaffna flights are anticipated to start before the end of this year. A total of 10 cities will be added on both the domestic and international fronts of IndiGo.
What do you think about this strategy of IndiGo? Discuss in the comment section.
With Inputs From Reuters
Featured Image Credits: IndiGo via Facebook
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