IndiGo CEO Outlines Vision for Indian Aviation, Calls for Bigger and Better Airports

Strategic Insights -

As India's largest airline, IndiGo, expands its long-haul operations to the UK and Europe, its CEO, Pieter Elbers, emphasizes the need for Indian aviation to focus on adding capacity to existing airports rather than building new ones. Elbers notes that IndiGo has committed to doubling its fleet by 2030, with a compounded annual growth rate of 10-11% considered realistic given the country's robust growth prospects.

Key Takeaways:

  • IndiGo has committed to doubling its fleet by 2030, with a compounded annual growth rate of 10-11% seen as realistic given India's growth prospects.
  • The airline operates four types of services: metro to metro, metro to non-metro, non-metro to non-metro, and regional connectivity scheme (ATR connections).
  • The largest growth area for IndiGo has been in metro to non-metro routes, which will continue to be a focus.
  • The airline currently operates 91 domestic airports, with plans to add four more this year, reaching 95 airports.
  • 90% of the Indian population lives within 100 kilometres of an IndiGo-served airport.
  • Upgrading and increasing the capacity of existing airports is seen as the next step in Indian aviation development.
  • Improved visa regimes and incentives for stopovers are not considered essential for India's aviation growth.
  • IndiGo has been introducing a premium product, Stretch class, on a selective number of routes, with a dynamic response from customers.
  • The airline's market share is not an objective, but rather an outcome of its growth plans.

Statistics:

  • IndiGo's market share: 65%
  • India's projected growth in air travel demand: doubling between 2023 and 2030.
  • Number of domestic airports operated by IndiGo: 91 + 4 (recently added) + 4 (planned addition) = 95.
  • Percentage of Indian population living within 100 kilometres of an IndiGo-served airport: 90%.
  • Fleet size: 46-47 ATRs out of a total order of 50.
  • Number of long-haul routes: 2 (Manchester and Amsterdam).
  • Number of years since introducing a premium product (Stretch class): 7-8 months.
  • Number of routes with Stretch class: unknown but limited.

Sources:

  • https://www.hindustantimes.com/india-news/pieter-elbers-indigo-ceo-on-indian-airlines-next-steps-to-global-hub-status-story-CISINF5ZSSEEIAPBZYFBIVCDVY.html