Indian shoppers will soon have another option to fly to Dubai, Bangkok and Singapore for an introductory, all inclusive fare of Rs 9,999.
Low cost carrier IndiGo will begin its international operations with the launch of daily service between Delhi and Dubai on September 1. It will also connect Delhi with Bangkok and Singapore from September. IndiGo will subsequently connect Mumbai with Dubai and Bangkok with daily flights from October 2.
Announcing the international foray, Mr Aditya Ghosh, President, IndiGo, said the promotional, all inclusive fare of Rs 9,999 was applicable for the first 25,000 seats. IndiGo's promotional fares were about 30 per cent cheaper than the fares offered by other low cost carriers and about half the fares charged by full service carriers.
IndiGo's foray into the international routes would intensify competition for other carriers such as Air India and Jet Airways on the short-haul routes. “There is a huge potential for Indian carriers to fly overseas. There is no reason why people won't fly with us if we keep our costs and fares low,” Mr Ghosh said. Only 34 per cent of the international routes from India are utilised by the Indian carriers.
IndiGo expects to deploy about eight to nine aircrafts for its international services by March. The company is also planning to connect Mumbai to Muscat and Delhi to Kathmandu, Mr Ghosh said.
IndiGo, which started its operations in August 2006, commands a market share of 19.7 per cent in the Indian skies and is the second largest airline in the country. The company, which operates with 39 aircrafts connects some 26 destinations and till date has flown some 30 million passengers. The company expects to operate its international flights from Terminal 1D and 1C of the Delhi airport.
To Hire More
Mr Ghosh said the company expects to hire more people including pilots, engineers and cabin crew as it expands the operations. “We plan to hire 200 pilots and some 900 crew over the next 18 months,” he said. The company also plans to add some 500 to 600 engineers. At present, IndiGo has staff strength of 4,056 employees.
Replying to a query on the company's plans to go for an initial public offer, Mr Ghosh said, “We are not even sure whether we will go for an IPO. There has been no change in plans”. Further, the company's expansion plans are being funded through internal accruals, he said. IndiGo recently placed a $15.6-billion order with Airbus Industries for supply of 180 A320 aircrafts starting 2016.