CEO reveals ambitious expansion plans whilst maintaining cost leadership in India
Abu Dhabi: IndiGo has dramatically expanded its presence in the UAE, increasing weekly flights from 35 to 111 over just two years, as India’s largest airline pursues aggressive regional growth whilst navigating what its chief executive calls "the world's most competitive aviation market."
Peter Elbers, who has led the carrier for three years, highlighted the UAE’s role as a cornerstone of IndiGo’s international expansion strategy that extends from Central Asia to Europe. IndiGo has also established itself as one of the larger carriers in Abu Dhabi, operating multiple flights and providing services to Fujairah.
"I think Abu Dhabi is a good example," Elbers said, emphasising the airline’s philosophy of building substantial market positions rather than superficial presence.
"Building up the network is not by planting your flags everywhere... I would love to build up a meaningful market position before we put out a whole new range of other destinations."
This measured approach has yielded significant results, with the CEO describing IndiGo's strategy as drawing "circles around India" for expansion.
"We started now to expand that circle around India by going to Central Asia. We started with our first flight ever to Africa," he explained, noting his excitement at being aboard the inaugural Nairobi flight filled with Gujarati passengers.
Looking ahead, Elbers expressed cautious optimism about further expansion opportunities, particularly regarding potential changes to bilateral agreements between India and the UAE.
"Within the existing bilateral relationship, there has still been a lot of room to grow, and we've used that room here in Abu Dhabi," he said. The airline recently started flights to Fujairah, demonstrating continued growth within current frameworks.
"The Indian Government is making various agreements with other countries... we're always monitoring it closely, and we're clearly ready to take any further steps if and when that happens," Elbers said, referencing recent agreements with Kuwait and Indonesia.
Regarding Dubai's plans for a new airport facility, Elbers acknowledged the long-term implications whilst maintaining a pragmatic stance. "It's a bit premature," he said of potential operations from Dubai World Central before new terminals are ready.
"It would require, perhaps, a little bit more solidification of what the exact plans are for what is opening when."
Despite recent escalations in regional conflicts, Elbers confirmed IndiGo has no plans to reduce Middle East operations. "We’re not considering pulling back. We have a long-term plan," he stated firmly.
The CEO acknowledged some impact on earnings but emphasised India's market resilience. "The Indian market is perhaps one of the most resilient markets in the world," he said, referencing the airline’s experience during the India-Pakistan tensions in May when 25 airports were closed.
"We had to close 13 airports... around 160-ish flights a day for eight day duration. Clearly that impacted us," Elbers said, noting he was aboard the first flight when Srinagar reopened. "But very quickly after, the need for mobility and the need for travel is there."
IndiGo's European operations represent a strategic bridge to its long-term fleet plans, with the airline currently operating six leased wide-body aircraft ahead of its Airbus A350 deliveries in 2027-28.
"India is growing fast. And if you wish, India is in a hurry, and so is IndiGo," Elbers explained the rationale for temporary leases. "Rather than to sit and wait till 2027 (when it is due to receive the first of its Airbus A359s)... We decided to take these temporary planes to bridge between today and 2027.”
The second leased aircraft arrived recently, enabling the launch of Copenhagen services on October 8. "I can’t imagine, IndiGo starts to fly to Copenhagen," Elbers marvelled, noting how far the airline has expanded from its regional origins.
The European expansion includes strategic partnerships, particularly with KLM through Amsterdam operations. "We fly to Amsterdam and then we connect to today, 15 and soon, 30 destinations with KLM," said Elbers, who’d served the Dutch airline for three decades, leaving as its President and CEO in 2022.
This connectivity extends to smaller UK cities with significant Indian populations. "We would be connecting to, like, 16 cities in the UK, Leeds, Bradford, all these smaller places where you have also Indian communities and also non-Indian travellers to India," he said.
Manchester represents another success story, being "for the first time, connected directly to India" with significant Indian diaspora presence. "There's a huge Indian business community in the Greater Manchester region," Elbers noted, adding that trade deals between India and the UK will drive further growth.
IndiGo's 'Stretch' premium economy product, launched in November, reflects evolving consumer preferences and has been strategically deployed on key routes.
Initially rolled out on "the nation's busiest and business routes" including Delhi-Mumbai (with 40 daily sectors) and Delhi-Bangalore, the service has expanded to international destinations including Dubai, Singapore, Bangkok, and Phuket.
"The customers who fly it are very enthusiastic," Elbers said, though acknowledging market education challenges. "We clearly see that it takes a bit of time for the market to associate IndiGo also with premium product."
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