IndiGo, India's largest airline, is shedding its low-cost carrier (LCC) image, according to CEO Pieter Elbers. Elbers made the comments at the recent CAPA India Aviation Summit 2024, arguing that IndiGo's business model has evolved significantly from a traditional LCC.
By Aditya M
Elbers pointed to several factors that differentiate IndiGo from budget airlines:
- High-Frequency Routes: IndiGo operates a surprisingly high number of flights on busy routes, like the 20 daily flights between Delhi and Mumbai. This level of frequency is more typical of full-service carriers.
- Codeshare Agreements: IndiGo has codeshare partnerships with major airlines like Turkish Airlines, Qatar Airways, and American Airlines. Code sharing allows airlines to sell seats on each other's flights, offering passengers more connectivity and convenience – a feature not commonly seen with budget airlines.
- Passenger Services: IndiGo offers a co-branded credit card and other services that go beyond the basic transportation model of an LCC.
"Is IndiGo a traditional LCC? We fly 20 daily flights between Delhi and Mumbai. Is that what a traditional LCC does?" Elbers questioned at the summit. He went on to say, "I believe we have moved beyond being a typical LCC, if such a concept even exists. Given the uniqueness of India and IndiGo, I don't think we need to be labelled in any specific way."
Elbers' comments highlight the evolving airline landscape in India. IndiGo may have started as a low-cost carrier, but it's clear they are offering a broader range of services and catering to a wider range of travellers. Whether this completely removes the LCC label is debatable, but it certainly positions IndiGo as a unique player in the Indian aviation market.
Is the LCC Label Outdated?
Elbers' comments raise a broader question: is the LCC label still relevant? As budget airlines mature, many are incorporating features once exclusive to full-service carriers. This blurring of lines makes it difficult to categorize airlines neatly.
IndiGo's strategy seems to be: low fares, high frequency, with some premium options. This hybrid approach might be the future for budget airlines, making the traditional LCC label less and less useful.
What do you think? Is the LCC label outdated? Share your thoughts in the comments below!
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