International expansion is a key part of IndiGo’s growth strategy and the airline plans to add new destinations such as Jakarta and Nairobi next year, said CEO Pieter Elbers, adding that supply chain issues that had delayed aircraft and engine deliveries and grounded several aircraft for many airlines in the country would in no way hamper these ambitions.
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“Our present Airbus A321s and the range it provides us, in combination with the geographical position of India already give us a lot of potential to further develop our international network,” Mr. Elbers said in an interview. “In our plans for 2024, Jakarta and Nairobi are on the anvil, and more destinations are under review. Nothing stops us today from executing our strategy when it comes to more international flying,” he added.
The airline has wet leased (leasing aircraft along with crew) four Boeing 777 aircraft recently from Turkish Airlines and deployed them on flights from Delhi to Istanbul. The arrangement was only a stopgap solution to cope with supply chain issues, Mr. Elbers explained, adding that it did not alter IndiGo’s plan to take delivery of Airbus A321 XLRs that would begin to arrive between 2024-2025. Other solutions to the supply chain challenges include extending leases on some of the existing aircraft and delaying the return of the A320ceo (the older current engine option or ceo) planes.
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To a question on whether the wet lease of Boeing 777 aircraft with business class on them, by a budget carrier whose own fleet comprises only of narrowbody A320s and smaller ATRs in single-class economy configuration, was a signal of the airline’s interest in procuring widebodies and offering business class on international routes in the future, Mr. Elbers said: “Our present model, which includes affordable fares, has served us very well”. He added that while the airline had not yet taken a decision on whether to add widebody or twin-aisle aircraft, he was “not ruling anything out”.
Also, the airline was in no hurry for another aircraft order as it had 500 on order already, he observed, adding that the wet leasing of the widebodies had not impacted IndiGo’s plans for A321 XLRs, and “a couple of dozens” were slated to arrive from 2024-2025 though Airbus was yet to give a precise timeline for the deliveries.
Terming the massive Air India’s latest order of 470 aircraft from Airbus and Boeing as a testimony “ to the growth and confidence of the Indian aviation market” Mr. Elbers emphasised that IndiGo’s order in 2019 of 300 A320neo family aircraft had similarly been based on the vision and belief of the airline’s promoters in India’s growth potential and aviation’s contribution to it.
Click here to read the full interview.