IndiGo's Premium Shift: Digital Upgrades and International Growth

26.07.2024 - 20:46 / skift.com / Peden Doma Bhutia / Pieter Elbers

To cater to a digitally-savvy India, low-cost carrier IndiGo announced significant digital upgrades to its website and mobile application Friday. As part of this initiative, the airline also looks to introduce in-flight entertainment accessible through the IndiGo app.

News of the in-flight entertainment comes after the carrier announced the introduction of a business class in the previous earnings call in May and the placing of the first-ever order for widebody aircraft in April.

CEO Pieter Elbers revealed that the “on-app entertainment” is currently being tested on one specific route — the Delhi-Goa sector.

Speaking at an earnings call on Friday, Elbers also shared that IndiGo has introduced WhatsApp as a communication channel through the launch of an AI booking assistant — 6Eskai. “Part of the digital journey is being where our customers are,” Elbers said. “We increasingly see our customers online, and therefore, we are exploring these new channels.”

During the earnings call, Elbers reiterated the airline’s ambitious plans. “By the end of this year, we’ll introduce a business product on the country’s busiest routes. Next year, we will have the XLR coming in, and by 2027, we will have wide-body aircraft in operation. By 2030, we aim to double in size.”

Elbers emphasized the importance of testing the “on-app entertainment” to enhance the digital experience of customers. “India is becoming a digitally savvy nation. We’re testing this on one route, where passengers can view movies, play games, and access geographical functions.” He noted that customer feedback has been encouraging, and a broader rollout decision will follow based on these insights.

IndiGo’s fleet, as of June 30, includes 382 aircraft, with 14 on finance lease and 18 on damp lease. Pending regulatory approvals, the airline plans to add six more aircraft from Qatar Airlines for the Doha route on wet or damp lease in the coming quarters.

Addressing the issue of grounded aircraft, Gaurav Negi, the chief financial officer, reported that the current count remains in the mid-70s. “We are working with Pratt & Whitney and expect the grounding to start reducing towards the start of next year.”

In the first quarter of the fiscal year (April – June 30), IndiGo inducted 15 aircraft, including eight from its original order book and seven through damp and secondary leases. “We will continue to diversify our sources and add more aircraft on finance leases,” Negi said.

Elbers highlighted the growth potential in the Indian market, particularly in international air travel. “There’s a buoyant market out there, hand-in-hand with the growth of the Indian economy.” IndiGo has added 30 new routes year-over-year, bringing the total to over 540.

To meet growing