With its main operating base in Delhi, IndiGo is poised to serve the international market from June 2011 and has filed an application to the Indian Ministry of Civil Aviation that will ultimately alter the dynamics of its route network if approved.
IndiGo is currently the fourth largest domestic carrier in India, as the following data illustrates (measured on the basis of weekly seat capacity).
There are well over one million seats circulating India's skies every week:
|
Carrier |
Destinations |
Weekly Seats |
Market Share |
|
Air India |
60 |
260,919 |
22% |
|
Jet Airways |
42 |
247,987 |
20% |
|
Kingfisher |
63 |
213,854 |
18% |
|
Indigo |
23 |
172,572 |
14% |
|
Spicejet |
18 |
94,233 |
8% |
|
Other |
221,995 |
18% |
|
| Total | 1,211,490 | 100% |
Source: Flightbase (June 14-20,2010)
At IndiGo's largest base in Delhi, the low-fare carrier serves 22 domestic points (222 weekly departures), followed by 175 in Mumbai and 154 (all weekly) in Calcutta.
While there are still opportunities to grow in India, it comes as no surprise that the carrier plans to expand into the international market given that other Indian carriers are starting to make the leap. For example, Spicejet, plans to become an international carrier in May using B737-800 equipment.
Regional player Paramount Airways has also expressed a desire to set up international operations towards the end of this year.
Indigo will enter the international market using its existing single fleet type of A320-200 aircraft. Limited to a five-hour flight range, IndiGo has a range of options, including serving points in South East Asia, however, its CEO, Aditya Ghosh, recently announced interest in routes to the Gulf from its Delhi base.
Why the Interest in the Gulf?
Over 13 million passengers flew between India and the Middle East between January 2009 and 2010, according to the latest IATA BSP data. The region carries the largest traffic flows from India, where Dubai is currently the most popular route.
From Delhi, the leading five served markets served are:
|
Origin |
Destination |
Passenger Numbers (Two Way Traffic), Jan 09-10 |
Carrier's Share of Non-stop Services |
|
Delhi |
Dubai |
519,560 |
Emirates (45%), Air India (27%), Jet Airways (9%) |
|
Delhi |
Riyadh |
200,238 |
Saudi Arabian Airlines (32%), Air India (19%) |
|
Delhi |
Abu Dhabi |
131,382 |
Jet Airways (49%), Air India (26%) |
|
Delhi |
Jeddah |
119,201 |
Air India (54%), Saudi Arabian (25%) |
|
Delhi |
Muscat |
112,196 |
Air India (46%), Oman Air (34%) |
Source: IATA BSP data Jan 09-10
The drive to develop international services is vital for Indian carriers to survive, as low yields in a competitive domestic market continue to exist, with carriers trying to be less reliant on the Indian market and seeking to attract foreign currency.
While IndiGo has not announced any planned destinations, there are a few markets in the Gulf that are currently unserved from Delhi, such as Tel Aviv, Damascus and Beirut.
Routes News believes it is more likely that Indigo will serve existing Gulf destinations and aim to compete on price, which will be vital in this price conscious market. This could prove more difficult, however, as other low-cost carriers start to add capacity in the India-Gulf sector, which is already highly competitive. The Civil Aviation Ministry has just allowed budget carrier flydubai to begin flights from Dubai to Indian destinations. Its first routes will be Lucknow, Chandigarh and Kozhikode in the summer. Plus, Air Arabia remains committed to India, where it already has an extensive network.
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