IndiGo to court business flyers with premium seats, hot food
What's the story
IndiGo, India's leading airline, is set to launch a premium seating class and a loyalty program by the end of 2024, the Economic Times (ET) reported.
This move aims to attract more business travelers and compete with Air India on international routes.
Despite industry hurdles, IndiGo, holding 60% of the domestic market, remains profitable. The airline now aims to become a frontrunner in the international market as well.
Details
35 Airbus A321 aircraft set for dual-class layout
To make room for the premium class, IndiGo plans to configure 35 of its Airbus A321 aircraft with dual-class seating by the end of 2024.
The premium cabin will feature eight rows of seats, two on each side, offering passengers 36 inches of legroom.
In contrast, IndiGo's current A321 aircraft and Airbus A320 provide an average of 30 inches of legroom with three seats on each side. Pricing for the premium seats is yet to be announced.
What Next?
Premium class will offer additional benefits
Premium class passengers can expect perks like priority boarding, complimentary in-flight meals served hot, and increased flexibility for itinerary changes.
Pieter Elbers, IndiGo's CEO, who joined the company in 2021 from Air France-KLM, has spearheaded a rapid expansion into international routes.
The airline is also gearing up to add Airbus A321 XLR aircraft to its fleet starting in 2025, allowing for longer flights and expansion into European markets.
Insights
IndiGo hopes to attract high-paying customers
The introduction of a premium section is anticipated to help IndiGo attract high-paying customers who currently opt for competitors like Vistara and Air India due to the absence of a distinct product.
"The airline believes that there is a section of high-end leisure travelers and small business owners looking for a business class product at fares lower than those charged by legacy airlines," an individual familiar with the strategy told ET.
Facts
Potential risks and investor concerns
Investors will be watching this development closely, hoping it won't affect IndiGo's successful low-cost model.
Aviation consultancy firm CAPA has cautioned that overestimating premium traffic and blending low-cost airlines could be a strategic error.
Despite these concerns, IndiGo remains committed to expanding its offerings and capturing a larger share of the international market while maintaining its strong domestic presence.