In a move that demonstrates IndiGo’s strong confidence in Air India’s recovery and expansion, the airline is entering the widebody market significantly ahead of receiving its own A350s, which were ordered last year. The pressing question is why this decision is being made now. As the CEO noted, IndiGo has long moved beyond its identity as a low-cost carrier and has been open to incorporating aircraft that do not bear its branding. The decision appears to favor capacity expansion and market leadership over strict branding and standardization.
At the heart of this strategy is the capacity deployment by competitor Air India. IndiGo currently offers 1.5 times more international flight frequencies and 1.3 times more seats on international routes compared to Air India, although it lags behind in terms of capacity measured by Available Seat Kilometers (ASKs), with Air India having 1.6 times IndiGo’s capacity. ASKs, calculated by multiplying the route length by the number of seats available, are a key metric in aviation, where longer flights with widebody aircraft typically outperform multiple flights with narrowbody planes. However, when combining the capacities of Air India and Air India Express, the Tata group as a whole surpasses IndiGo, with IndiGo’s ASK capacity being less than half that of the combined Tata group, along with 21% fewer seats per week and 17% fewer departures.
IndiGo is also facing challenges with widebody aircraft deliveries due to supply chain issues, and acquiring wet lease aircraft is not straightforward. With a deferred delivery schedule for wet-leased aircraft, IndiGo will have access to planes for some time, allowing it to initiate new services until the A350s arrive. Notably, the Norse Atlantic aircraft appear to offer better amenities and experiences compared to the high-density B777s currently used for flights to Istanbul.
In recent years, IndiGo has established several codeshare agreements, some of which have increased traffic on its domestic network through international partners. The codeshare with Turkish Airlines, for instance, includes ticket sales to destinations beyond Turkey, providing IndiGo with insights into passenger booking patterns and competitive data.
As for the destinations IndiGo plans to serve with these new aircraft, the airline has not disclosed specific routes yet. However, it is expected that the destinations will include a combination of high-traffic routes where IndiGo can secure rights, routes that directly compete with Air India, and new routes where it can gain a first-mover advantage. Unlike Air India, which benefits from years of legacy, a well-established sales system, and a global presence, IndiGo’s initial routes may focus on destinations with significant demand from India rather than international markets, particularly those with a strong Indian demographic.
