IndiGo, which is India’s largest airline in terms of number of passengers flown, has announced plans to introduce business class this year. However, as of now there are more questions than answers.
IndiGo plans business class product
Since commencing operations in 2006, IndiGo has operated as a low cost carrier, and hasn’t offered a premium cabin experience. That’s about to change. IndiGo plans to introduce a business class product before the end of 2024.
So far the airline hasn’t revealed all that many details, though is promising that more will be announced around August. IndiGo describes the decision to introduce business class as “a groundbreaking move to redefine business travel in India,” and says the product will be a “tailor-made product for India’s busiest and business routes.”
As this decision is described, IndiGo was founded with a focus on three customer promises — affordable fares, on-time performance, and hassle-free and courteous service. Now the airline feels that it’s time to take the next step in the evolution of the airline. This decision comes as IndiGo sees “India’s soaring economy and evolving aspirations of Indian society.”
Here’s how IndiGo CEO Pieter Elbers describes this development:
“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 store 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, connecting people and aspirations.”
What can we expect from IndiGo business class?
First of all, I’m curious what kind of a business class product IndiGo will introduce. Presumably the airline will go in one of two directions:
- IndiGo could introduce special business class seats, similar to what you’ll find on Air India and Vistara (roughly comparable to domestic first class within the United States)
- IndiGo could introduce a more budget friendly business class, with the first several rows of the cabin having blocked middle seats (roughly comparable to business class within Europe)
Personally I feel like the second scenario is more likely than the first scenario, since IndiGo is still very much a budget conscious airline. Then again, the airline describes this as “tailor-made” and a move to “redefine business travel,” and I’d have a hard time describing economy seats with blocked middles that way.
Next, I’m not surprised to see IndiGo finally introduce business class, especially with the carrier’s growth aspirations. IndiGo has plans to fly long haul, and has ordered both Airbus A321XLRs and Airbus A350-900s, which will cause the airline to increasingly compete head-on with Air India.
I figured the airline wouldn’t be operating long haul flights in an all-economy configuration (the economics of that aren’t great). So if the airline is going to offer business class on long haul flights, it’s also important to have competitive connectivity opportunities.
Now, I am curious if IndiGo is falling into a bit of a trap here. IndiGo has been incredibly successful sticking to its core business of operating affordable, reliable, and no frills flights. As the airline goes upmarket, economics change a bit as well. Will the airline focusing on long haul flights and premium cabins ultimately improve profitability or harm it? I’m not sure, but it seems like a gamble…
Bottom line
IndiGo plans to introduce a business class product before the end of 2024, which is a major development for the airline, given that it has historically been a low cost carrier. This makes sense in the context of IndiGo planning long haul flights, since presumably those aren’t going to be in an all-economy layout. I’m looking forward to learning more details.
What do you make of IndiGo introducing business class, and what are you expecting?
