IndiGo Bets on New Airbus A321XLR for International Expansion
GURUGRAM- IndiGo (6E), the nation’s leading airline, commanding a domestic market share of just over 60%, significantly emphasizes the Airbus A321XLR. The aircraft is anticipated to join its fleet “around 2025,” with the aim of bolstering its international footprint even further.
According to its CEO Pieter Elbers, IndiGo aims to achieve a twofold increase in size by 2030, incorporating new domestic and international routes and destinations. This vision aligns with the airline’s ambitious global aspirations, reflecting India’s substantial economic growth potential.
IndiGo Airbus A321XLR Int’l Ops
Responding to inquiries regarding the possibility of IndiGo acquiring wide-body aircraft and introducing new classes, Elbers stated, “We keep all options open and evaluate them carefully. We make decisions for IndiGo that align with market needs and are timed appropriately.”
Moreover, he emphasized that the arrival of the A321XLR aircraft, anticipated to join the fleet “around 2025,” will enable the airline to extend its reach further.
“The XLRs will expand our operations to various destinations in Europe and Asia, including cities like Athens, Seoul, and Rome. This represents a significant expansion for IndiGo,” he added.
IndiGo currently has over 900 aircraft on order. As of December 2023, the carrier’s fleet comprised 358 aircraft, consisting of 31 A320CEOs (including 11 on damp lease), 184 A320neos, 94 A321neos, 44 ATRs, 3 A321 freighters, and 2 Boeing 777s.
Double Fleet by 2030
Elbers emphasized in an interview with PTI that IndiGo’s next significant leap forward will be to double its size by the end of the decade, striving to consolidate and expand its position on the global stage.
Regarding the upcoming financial year starting from April 2024, the IndiGo chief mentioned that the capacity guidance, in terms of seat capacity, indicates “early double digits,” with one aircraft scheduled to join the fleet every week.
Despite challenges such as supply chain disruptions and issues with Pratt & Whitney engines, Elbers underscored the airline’s implementation of various mitigating measures, yielding positive results. He also noted that the Aircraft on Ground (AOG) situation is currently “stable.”
In February, the airline reported that the number of Aircraft on Ground (AOGs) was around the mid-70s.
The carrier has operated for 17 years and serves 88 domestic and 33 international destinations, boasting a fleet comprising more than 360 aircraft.
“By the year 2030, our ambitious target is for the airline to double its current size, expand its global reach, and extend its footprint,” stated Elbers, highlighting the company’s aspirations. He also hinted at the likelihood of more codeshare partnerships in the future.
Presently, IndiGo has established codeshare agreements with Turkish Airways, British Airways, Qatar Airways, American Airlines, KLM-Air France, Qantas, Jetstar, Malaysia Airlines, and Virgin Atlantic.
Codesharing facilitates airlines’ booking of passengers on partner carriers, ensuring seamless travel experiences to various destinations.
Focus on More Int’l Routes than Destinations
“Looking ahead, it’s evident that we’ll be introducing numerous new international destinations. While there will be some domestic additions, the focus will primarily be on expanding our international presence,” he remarked. “We especially see ample potential in expanding our international routes, not just limiting them to adding new destinations.”
He highlighted the example of increased services to Singapore, noting that a year ago, IndiGo operated flights to Singapore from three Indian cities. In contrast, today, it serves the country from seven destinations. “This presents us with a significant opportunity to introduce new destinations and expand our network by adding more routes.”
A blend of fresh domestic and international routes will play a pivotal role in IndiGo’s endeavor to double its size by 2030, for which the necessary groundwork has already been laid.
Groundwork Laid for IndiGo, Now Time to Takeoff
“We should consider IndiGo within the broader context of the global aviation landscape. As India gears up to become the third largest economy in the world, our airlines must mirror the nation’s ambition itself,” Elbers asserted. “Our initial target was to reach 100 million passengers, positioning us among the top ten airlines globally. Presently, we are the seventh largest in terms of daily departures.”
Elbers emphasized IndiGo’s commitment to playing a significant role in fostering a robust aviation ecosystem within India. “If India, as the world’s most populous nation, is poised to become the third largest economy, it’s only fitting that our aviation infrastructure matches the scale, potential, and aspirations of the country. IndiGo is resolute in playing a prominent role in this endeavor.”
Following the challenges posed by the coronavirus pandemic, the airline has successfully restored its financial stability, maintaining profitability over the past five quarters and achieving a net worth positive status in the December quarter of 2023.
“In our current position, we have laid the groundwork for what can be considered IndiGo’s next major mission: doubling in size by the end of the decade. Such an ambition is only viable when built upon a strong foundation,” Elbers remarked.
“These foundations encompass financial stability, a customer-centric approach, an extensive network, and a significant fleet order made in June last year, providing us with long-term visibility well into the next decade.”
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