CEO Elbers discusses A350 order, business model flexibility & FSC plans, ET TravelWorld

In a recent press call discussing A350 order, IndiGo CEO Pieter Elbers shed light on the airline’s strategic approach and plans for its widebody aircraft operations, particularly focusing on the Boeing 777s and the upcoming A350s. Elbers highlighted the pivotal role played by the Boeing 777 operations, which unexpectedly contributed to the low-cost carrier’s decision to order A350s.

Initially introduced to address capacity shortages, the damp lease of Boeing 777s provided valuable insights that turned necessity into a virtue for IndiGo. Elbers emphasised how effectively the domestic network from major metros like Delhi and Mumbai complemented widebody operations, paving the way for future expansion and optimisation.

Currently, IndiGo has 50 A321XLRs on order, which will further enhance and complement the A350 operations. Elbers mentioned that the seat configuration and routes for the A350s are yet to be finalised, with the anticipated entry into service in 2027.

Elbers stressed that IndiGo’s business model is dynamic and will evolve based on customer demands. When asked about the potential Full-Service Carrier (FSC) model, he mentioned that all options are open, signaling the airline’s flexibility and adaptability.

“Ordering widebody aircraft is seen as a natural progression for IndiGo, a well-established airline aiming for a fleet of 550-600 aircraft by 2030. The introduction of longer-range aircraft like the A321XLR will provide additional operational capabilities, expanding the airline’s reach to destinations in Europe and the Far East within the 7-8 hour flight range,” he said.

IndiGo plans to increase its international capacity deployment to 30 per cent with the introduction of longer-range aircraft, strategically leveraging hubs in major Indian cities like Delhi, Mumbai, Hyderabad, and Bengaluru. Elbers also highlighted the growing passenger traffic from Central Asia to Thailand, with transit via India becoming increasingly popular.

The focus remains on maintaining cost leadership and offering a competitive product to passengers, the airline’s executive said. Elbers mentioned that the airline will explore all possible financing options for the A350 purchase, considering factors like aircraft tenure and operational efficiency.

Overall, IndiGo’s strategic vision involves leveraging its widebody fleet to enhance connectivity, optimise routes, and provide Indian customers with more direct flight options, ultimately aiming to revolutionise the travel experience for passengers.