IndiGo will offer twelve business class seats on metro to metro routes starting mid-November and has announced a loyalty programme as it embarks on its next phase of growth.

This is quite a transformation for the airline which prides itself on consistency and simplicity. The pivot to a different business model comes as the airline aims to widen its global footprint.

The new products were unveiled as the airline celebrated its 18th anniversary on Monday. The airline’s website is also being revamped to make ticket bookings easier.

The business class seats on with adjustable headrests and five inch recline will be installed on new Airbus A321Neo aircraft that will be flown on twelve busy metro-to-metro routes. 

Passengers opting for the service will enjoy other benefits such as specially curated meal box, priority check-in among others.

IndiGo CEO Pieter Elbers (R) with Mark Hiller, CEO of RECARO Aircraft Seating and RECARO Holding, during the 18th anniversary function of IndiGo, at Bharat Mandapam in New Delhi, Monday

IndiGo CEO Pieter Elbers (R) with Mark Hiller, CEO of RECARO Aircraft Seating and RECARO Holding, during the 18th anniversary function of IndiGo, at Bharat Mandapam in New Delhi, Monday | Photo Credit: Shahbaz Khan

IndiGo operates 2,000 flights daily with over 380 aircraft to 121 destinations in India and overseas. The airline will add seven foreign destinations by end of the fiscal year and will induct Airbus A321XLR aircraft that will allow it to fly to Europe, Japan and other medium haul markets. “Around 65 per cent of the world population is in 5-6 hours flying range from India,” airline’s CEO Pieter Elbers remarked.

Capturing corporates

Along with the international opportunity, IndiGo looks to tap the corporate traffic which within India.

 “IndiGo’s business class offering is well timed because as the disposable income and aspirations of flyers in our country rises, there is an emerging critical mass of travellers willing to pay a premium for priority services, comfortable and reclining seats as well as gourmet meals,’‘ said Aloke Bajpai, group CEO of ixigo.

Currently only Air India and Vistara offer business and premium class seating among domestic airlines and industry experts see a clear revenue opportunity for IndiGo with its premium offering.

“Indian consumers deserve choice and IndiGo will ensure that it happens,’‘ said IndiGo founder and managing director Rahul Bhatia. By growing its international operations the airline also hopes to seize market share from foreign airlines that still control sizeable share of passenger and cargo traffic.” It is critical that we bring that economic wealth to the country,” Bhatia remarked.

He added that the IndiGo will ensure that it continues to maintain its cost leadership as it launches new products such as business class.

Bhatia said the recent promoter stake sale in the airline had led to speculation in investor community. “I want to say that InterGlobe and I are here to stay.”

Responding to a query on competition and duopoly in Indian skies, Bhatia said he welcomes competition and that country of India’s size can support more carriers. “ We are often held guilty for our market share. The market share was not entirely our doing. Some growth came as other carriers fell by the way side,” he added.

“IndiGo would never be found guilty of gouging its customers. That’s just not our business. Our business is to keep costs low, provide affordable fares, fill up planes, buy new planes and keep the cycle going,” he added.