New Delhi: As IndiGo begins long-haul operations to the United Kingdom (Manchester) and Europe (Amsterdam), Pieter Elbers, CEO of India’s largest airline, shares in an exclusive conversation that the next phase of Indian aviation should focus not on building more airports, but on enhancing the size, efficiency, and quality of existing ones. Edited excerpts:
How do you see the domestic market developing for IndiGo as you already have 65% market share? Don’t you think some of the routes are already at saturation level?
One of the key metrics I use is seats per capita, especially in comparison with markets like the US, Europe, or China. All these regions have significantly higher figures. Even China, which ranks relatively lower on this metric, offers four times the number of seats than India currently does. Based on projections suggesting that the Indian market will double between 2023 and 2030, a compound annual growth rate of 10–11% seems quite reasonable. We have aligned our strategy accordingly, committing to doubling our fleet over the same period.
Whether you consider seats per capita or GDP-aligned data, all indicators support strong growth potential. Naturally, there are seasonal dips—like last May, which was impacted by heatwaves and elections—but we don’t focus on monthly DGCA numbers. Our perspective is long-term. The historical trajectory already supports this outlook. For IndiGo, market share is the result of sustained effort, not a target in itself.
What is your game plan in terms of addressing the Indian market?
Our operations fall into four broad categories. First, we have our metro-to-metro flights, which are crucial given that metro cities contribute significantly to India’s GDP. Then, there’s the metro-to-non-metro segment, which is witnessing the highest growth currently. The third category includes non-metro to non-metro routes—connecting Tier-II and Tier-III cities directly. Lastly, we support the regional connectivity scheme using ATR aircraft. While this segment may be smaller in proportion, it plays a vital role in integrating remote communities into the broader aviation network.
Going forward, we intend to maintain our focus on all four segments, with special emphasis on the rapidly growing metro-to-non-metro routes.
Do you see scope for further expanding your regional aircraft fleet?
We constantly assess this. Presently, we operate around 46–47 ATRs out of the 50 we had planned, so nearly all are in use. In some instances, routes previously operated with ATRs have now matured to a level where we can switch to A320s, thereby freeing up ATRs for newer regional routes. Several airports still support only ATR operations, and we are actively evaluating our options in that context.
IndiGo now operates in 91 domestic airports. We’ve recently added four and plan to add four more this year, taking the number to 95. Notably, around 90% of the Indian population resides within 100 km of an airport served by IndiGo. While the actual accessibility differs—especially in hilly terrain—the overall coverage is quite comprehensive.
Therefore, I believe the next big step in Indian aviation is not necessarily the addition of new airports but upgrading existing ones—making them larger, more efficient, and passenger-friendly. The emphasis will likely shift towards enhancing the capacity of current infrastructure.
With international expansion enabling both better connectivity for Indian consumers and progress towards India becoming a global aviation hub, what policy changes would you like to see from the government, such as improved visa regimes or incentives for stopovers on Indian carriers to support this ambition?
Personally, I would be cautious about introducing stopover-related policies specific to Indian carriers. Aviation thrives on fairness and open competition. If we implement policies that benefit us locally, we may face reciprocal actions from other countries.
Our focus should be on ensuring a level playing field. I am confident that our cost structures and service quality give us a competitive edge. A more impactful move would be to improve transfer connectivity infrastructure at Indian airports, which would elevate India’s position as a global aviation hub.
IndiGo has been on a premiumisation journey — introducing Stretch class or the business class — for the past 7-8 months. How has been the response to the offering in terms of occupancy domestically?
I wouldn’t call it a complete premiumisation strategy because that implies an overall shift in our core product, which isn’t the case. Our foundation remains strong, with a vast domestic network of 500 routes across 130 destinations and over 100 international routes. The Stretch offering is limited to select routes.
Unlike certain US airlines that rolled out premium products system-wide, we have been more selective. This offering is aimed at a niche group of Indian travellers looking for a slightly upgraded experience, and it also serves as a preparation for long-haul services.
The response has been mixed—some days see excellent load factors, while others are more modest. Part of the issue is that customers aren’t always sure if a given flight will include Stretch seating. Overall, India remains a highly price-sensitive market, with many passengers booking at the last minute.
