IndiGo, the “unknown” low-cost Indian that buys 500 planes and is preparing to fly to Italy – Corriere.it

An “unknown” low-cost Indian buys 500 Airbus A320 and A321neo — the largest single order in the history of aviation —, is to receive another 480 in the next decade and in the meantime is already flying 307. With the maxi order of Monday 19 June IndiGo is confirmed in the world top ten for air transport. And it points straight not only to South-East Asia and Africa, but also to Europe, including Italy, as confirmed by the Courier Pieter Elbers, the (Dutch) managing director who led KLM for years.

The big order

During the Paris Air Show – back on French soil after four years mainly due to the pandemic – the top management of IndiGo signed the order with Airbus for another 500 of the A320neo “family” which have a list price of 55 billion euros, but in this case the real value should be less than half, thanks to the discounts usually provided for in these agreements. It is not yet clear how many A320neos, how many A321neos and how many A321 XLRs will be for intercontinental flights. In total, the low-cost airline has already booked 1,330 of these 1,247 Airbus aircraft since it took off. It is not excluded that these days the Indian company is ordering another 25 jets for intercontinental flights: the negotiations focus either on the A330neo or on the Boeing 787.

Floors

“Let’s say that we are little known outside of India,” admits the managing director of IndiGo Elbers speaking in early June on the sidelines of the annual meeting of carriers organized by Iata. “Maybe something is changing now thanks to the codeshare agreement we have with Turkish Airlines and which allows us to sell flights to Europe with a stopover in Istanbul”. For Elbers, who has a past in Europe, the future is not China but India. “It will be the largest economy in the world in a couple of years – he says – and for this reason the big brands are investing in the country”. Not only. “With about 750 million under 30s, India also has the largest segment of the young population.”

The numbers

Founded in 2006, IndiGo – not to be confused with the US fund Indigo Partners – is privately owned: in the first five months of this year, according to data from the Indian Ministry of Transport, it transported 36.42 million people, “but we aim to 100 million after having embarked 86 million last year», says Elbers. The market share on domestic flights in India fluctuates, depending on the month, between 55 and 61% in this first part of the year, leaving Air India and Vistara to fight over the step with 8-9%.

The four “pillars”

«IndiGo is almost 17 years old and since then we have already transported more than 500 million customers», calculates the CEO. “These are impressive numbers.” The vector, he continues, rests on “four pillars”. «The first: we always fly on time, which is not easy in a country where there are always some obstacles between adverse weather and infrastructure. The second: we offer affordable fares to attract those who have never flown before. The third: we are low cost but not low quality. The fourth: our network of connections is expanding more and more with 78 destinations in India and soon 32 internationally».

Objective Europe (and Italy)

“Today, about a fifth of the seats we sell are on international routes,” comments Elbert. «As part of our overseas expansion plan, we will launch new direct connections to Asia and Africa. In Europe for now the partnership with Turkish Airlines (which granted a Boeing 777, ed) allows us to fly our passengers to 33 cities, several of which are Italian». But when the first Airbus A321 XLRs arrive – capable of covering a distance of 8,700 kilometers – “we will certainly inaugurate direct connections between India and Italy”, anticipates the managing director. He doesn’t want to anticipate the cities yet but it’s easy to imagine Milan, Rome, Bologna, Venice at the beginning.

The development of the country

India is running, is the reasoning of the European Elbers. “200 new airports will be built in the country, some will add to the existing ones in Delhi and Mumbai,” he says. How long? “Within five years,” confirms Jyotiraditya Scindia, Indian Minister of Aviation. “Nine years ago there were 74 stopovers, today they have risen to 148”. And again: «The airplanes in service in the country have gone from 400 in 2014 to 700 today», net not only of the 500 new aircraft ordered by IndiGo, but also of the 470 requested by Air India a few weeks ago. To support the expansion by air there is also the government program which aims to develop internal connectivity through small regional airports. After all, as Elbers recalls, “the nation is enormous: the North-South distance is 3,000 km, the East-West distance is 2,500 km”.

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