Indian Economy News

IndiGo eyes lesser-known international destinations for the next growth phase

IndiGo, India's largest airline, is set to focus its next phase of international expansion on lesser-known destinations while increasing its presence in popular markets like Singapore and Dubai, CEO Mr. Pieter Elbers told Reuters. Last year, the budget carrier successfully expanded into Central Asia with flights to cities like Baku, Almaty, Tashkent, and Tbilisi, creating travel opportunities in markets with minimal competition. As more Indians take to international travel and with the upcoming delivery of its longer-range Airbus A321XLR planes, IndiGo aims to build on this strategy. "With the growing desire and aspirations of Indians to fly internationally, I think we also have a great opportunity for the more unknown places," Mr. Pieter Elbers said at the International Air Transport Association (IATA) meeting in Dubai. He mentioned potential new routes in Thailand and Central Asia alongside established destinations such as Singapore, Dubai, and Phuket.

IndiGo, which reported a record profit of close to US$ 1 billion for the FY24, is intensifying its efforts in India, where it flies to 88 cities and has doubled its global network to 33 destinations from 15 two years ago. The airline plans to add ten new domestic and international destinations this year. Additionally, IndiGo offers connections to numerous European cities through its codeshare partnership with Turkish Airlines. It has recently ordered 30 Airbus A350 wide-body planes capable of reaching the United States and Australia. IndiGo initially planned to deploy 30% of its flying capacity, measured by the number of seats available per kilometre, into international markets by 2030. However, he indicated that this target will be achieved sooner than expected. Analysts suggest that IndiGo's expansion into Central Asia has helped the airline capture a growing demographic of young travellers aspiring to international travel but not yet ready to spend the money required for European trips.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.