Thu. Jul 18th, 2024

IndiGo will launch business class on major metro routes

By Vaseline May27,2024

IndiGo, India’s largest airline, will introduce business class seats on a number of its aircraft, which will fly on prominent domestic as well as international routes.

According to industry sources, IndiGo’s business class seats will be available on 10 to 15 aircraft flying on major domestic metro routes. Passengers traveling between Delhi-Mumbai, Delhi-Bengaluru and Delhi-Chennai, among others, will soon have the option to upgrade to a more premium travel experience.

IndiGo’s international business class service is expected to commence on routes such as Delhi-Dubai, Delhi-Singapore and Delhi-Abu Dhabi.

Experts suggest that IndiGo could initially offer its business class seats at lower prices compared to competitors like Air India and Vistara. This pricing strategy could help attract passengers looking for premium services without the premium price tag.

Despite expected lower fares, IndiGo will face stiff competition from established full-service airlines. These competitors often offer superior services and amenities, including chauffeur services, dedicated premium lounges and enhanced check-in counters. Such offerings add significant value for business class passengers, albeit at a higher cost.

Opinions from industry experts on IndiGo’s foray into business class are mixed. Some see it as a positive development that reflects the airline’s growth and leadership in the Indian market. Others warn that while this move is promising, it also poses several challenges, especially when it comes to matching the service levels of global full-service airlines.

In response to CNBC-TV18’s query, IndiGo responded by saying, “We will deploy business class seats on India’s busiest and business routes.” The airline plans to reveal more details about its business class strategy in August, to coincide with its 18th anniversary.

During the recent earnings conference call, IndiGo’s CEO, Pieter Elbers, announced the airline’s venture into the business class segment. This announcement comes on the heels of a record-breaking fiscal year 2024, in which IndiGo reported a profit of 8,172 crore.

The airline also achieved a net profit of 1,894 crore in the fourth quarter, marking the sixth consecutive profitable quarter. Operating revenues increased by 26% and reached a range 17,825.3 crore compared to 14,160.6 crore in the same period last year.

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