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According to Elbers, IndiGo is committed to maintaining its cost leadership despite the additional complexities and expenses associated with introducing a business class.
IndiGo, India's leading airline, is set to introduce its exclusive business class offering - IndiGoStretch, on the Delhi-Mumbai route starting from mid-November. Ticket sales for this premium service will commence on Tuesday.
Known for its budget-friendly reputation, IndiGo is expanding its business class to cover 12 routes, marking a significant shift in its product lineup. This strategic move has been in the works for some time and signifies a new era for the airline, which has traditionally offered a one-size-fits-all single-class cabin configuration for the past 18 years.
IndiGo's new business class cabin will feature 12 luxurious seats designed by Recaro in a comfortable two-by-two layout. Elevating the inflight experience, the delectable business class meals will be carefully curated by the prestigious Oberoi Hotels, as revealed by IndiGo's CEO Pieter Elbers during a special celebration marking the airline's 18th anniversary.
With India's economy on the rise and the aspirations of its society evolving, IndiGo aims to redefine premium travel within the country. By expanding access to this elevated service, IndiGo is set to provide a sought-after option for those looking to experience business class travel, possibly for the first time. This exciting initiative was first announced in May, signaling IndiGo's commitment to introducing a top-tier business class offering on India's busiest and most sought-after routes.
Experts in the industry attribute the recent decisions made by IndiGo to the competitive pressure from Tata group's full-service carriers, Air India and Vistara, catering to business travelers and those seeking premium comfort. The higher yields from business and premium classes compared to the economy class are a driving force behind this trend. However, offering premium class products also comes with increased costs for airlines.
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Despite the added complexity and costs associated with business class products, IndiGo remains committed to upholding its reputation for cost leadership in the market, as stated by Elbers.
The airline's decision to introduce a business class cabin on select domestic routes is seen as a strategic move towards offering a premium business class experience on its international routes as well. This includes high business travel routes and medium to long-haul international flights that the airline plans to operate in the future, utilizing advanced aircraft like the A321XLR and A350. Additionally, the recent announcement of entering the long-haul market with an order of 30 Airbus A350-900 wide-body aircraft showcases the airline's commitment to expanding its services. With a fleet primarily consisting of narrow-body aircraft, except for two Boeing 777 planes dedicated to flights to and from Istanbul, IndiGo continues to innovate and elevate the travel experience for its passengers.
Having established a stronghold in the domestic market with a commanding market share exceeding 60 percent, IndiGo is now setting its sights on broadening its international reach and operations. This strategic shift not only intensifies competition with Air India and Vistara but also puts foreign carriers on notice.
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