Significance for India’s premier airline, analyzing IndiGo’s latest airbus

Recently, IndiGo, India’s largest carrier, reached an agreement with Airbus to firm order 30 A350-900 aircraft. The airline initially hinted at its interest in expanding into the widebody aircraft market in 2017 when it expressed intentions to acquire the international business of Air India, including Air India Express. Since then, significant developments have occurred, such as the collapse of Jet Airways, the global pandemic, and the sale of Air India to the Tata group. Former co-founder Rakesh Gangwal had previously stated, “We are generally of the view that it makes fundamental economic sense for us to enter the long-haul, international market.” However, Gangwal is no longer a board member of IndiGo following a dispute with co-founder Rahul Bhatia.

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Dreams set in motion since 2017, IndiGo’s path to widebody aircraft airline

IndiGo’s expressed interest in the international operations of the Air India group clearly indicated its ambitions to venture beyond domestic skies, a feat not achievable with its existing A320 family aircraft, even with the XLRs.

In December 2018, the airline inked its inaugural codeshare agreement with Turkish Airlines. Since then, it has flourished through this collaboration and further expanded its partnerships with other carriers such as Qatar Airways, American Airlines, Air France, KLM, British Airways, Virgin Atlantic, Qantas, and Jetstar.

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IndiGo’s ascent, competing head-to-head with air India

The airline finds itself in competition with its own growth trajectory rather than directly with Air India. However, it aims to capitalize on routes that Air India has already developed and are experiencing growth. London stands out as an obvious choice, but with 30 planes at its disposal, the airline has the opportunity to expand its reach from Australia to Europe and North America, leveraging the range capabilities of the A350-900s. The specific routes chosen will depend on the configurations selected by the airline.

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