IndiGo has tied up with global distribution system (GDS) operator Travelport in a bid to reach more customers and territories.
The Gurugram-based low-cost airline is also hoping to increase its ancillary revenues, though IndiGo President Aditya Ghosh and Travelport President and CEO Gordon Wilson declined to get into specifics.
When asked to quantify the increase in ticket sales other Indian carriers (Air India, Vistara, SpiceJet among others) have seen due to Travelport, Wilson said it is confidential information.
“Look at our track record. RyanAir, EasyJet among others... not one of them has left. No one is here due to sufferance. They come in because they want to and stay in our system. So you have to conclude that there is value in it,” Wilson said.
On the issue of how much more ancillary revenues IndiGo will earn as a result of the tie-up, Ghosh said much depends on regulations.
“Ancillary revenues for airlines in India are low as compared to what you see typically in airlines around the world. Here, the ancillary revenues are low for a variety of factors including regulations. In many parts of the world low-cost airlines are allowed to charge for checking in the first bag and there is no regulation that you have to allow so much baggage allowance per seat and on refundable and non-refundable fares among others,” he pointed out.