Words I’d never thought I’d say. IndiGo is going to move on from being a simple, no-frills carrier. Today, on announcing their results for theFY24, where IndiGo generated a billion dollars in profit over FY24, there was another interesting announcement.

IndiGo will launch a business class “product” in FY24

IndiGo, India’s largest airline with over 350 aircraft and over 60% market share in the domestic space, today announced that it will launch a ‘tailor-made’ business product for India’s busiest and business routes.

IndiGo says it considers the time is right for IndiGo to redefine premium travel in India, increasing the availability of this service for the nation. IndiGo thinks that it will create a desired option for many who are aiming to travel business, perhaps for the first time in their lives.

Pieter Elbers, CEO of IndiGo said,

As India’s most preferred airline, we are constantly looking at innovating our service offering for our millions of customers. Over the past 18 years, India’s and IndiGo’s growth story have been closely interlinked. We believe as India gears up to become the third largest economy in the world, it’s our privilege to provide the New India even more options to choose from as they travel business. We are excited with this new phase and tailor-made product in IndiGo’s evolution and strategy and aim to further give wings to the nation, by connecting people and aspirations.

As per IndiGo, this product will be available on India’s busiest and business routes and will be operational before the end of this year. Come August, around IndiGo’s anniversary, more details on product offering, launch date and routes will be unveiled.

What I would be curious to understand is what would be this “tailor made” product. Is this going to be a brand new seat for IndiGo, or one of the current ones in the market? Will they have 2×2 seating in the front, or will they stick with 3×3 seats and keep the middle seat free to start with? Will there be meals included? This announcement is a precursor to extending Business on the other product, which is the XLR coming next year most probably.

Remember, among other things, this is one more step in the way to become a hybrid carrier. IndiGo is also working on a loyalty programme, has ordered widebody aircraft, and is trialling IFE. It also started selling hot meals on some flights.

Bottomline

IndiGo has succumbed to the lure of becoming a full-service carrier, or at least part of the way. It realises that there is money to be made on the business cabin, and more ancillaries to sell in the conventional manner of an aviation business, and is going for all the things that any other airline business does to make even more money for itself. The Business “Product” will be announced in August 2024 and goes live before the end of the year.

What do you make of IndiGo’s new ambition to have a Business Product?

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