IndiGo Draws Its International Strength From Its Domestic Dominance

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Indian low-cost carrier IndiGo has pointed out its domestic market dominance as the main element in its international growth strategy.

Like other airlines during the heat of the pandemic era, IndiGo also faced a series of setbacks. But while some are still struggling to recover, IndiGo said it has fully restored its pre-pandemic international network. This is in addition to destinations in Myanmar, Hong Kong, and China.

The airline stated that it will start receiving Airbus A321XLR, which will enable it to take over non-stop international destinations. At the moment, it is only served via hubs like Dubai.

IndiGo Has 58% Off The Domestic Market

Chief Executive Officer of IndiGo, Ronojoy Dutta, commented on the development.  “The reason we’re excited about ourselves is that it is very different from everyone else,” he stated.

Dutta also talked about the airline’s results in the second quarter of the year. He stated that the positive result is a testament that the company’s domestic strength is helping it to maintain its international strategy.

Dutta added that India’s domestic market started to recover from the pandemic before the international break. IndiGo has 58% of the domestic market, which was completely grounded due to Covid-19 restrictions. But the market is gradually opening up as the restrictions are lifted.

He admitted that the airline’s domestic market leads to international strength while international strength doesn’t bring domestic strength. Dutta pointed out that domestic strength is very important, noting that big international players like TWO and Pan Am have fallen because of a lack of domestic strength. Dutta will be retiring in September, with KLM chief Peter Albert already appointed to replace him.

IndiGo Operates Well In Tier II Indian Cities

IndiGo’s strong domestic strength is helping it to conquer markets internationally. Dutta added that connecting traffic is moving smoothly across its network. The company’s new short-haul routes are also performing well.

He added that the airline has shown operational strength in tier II Indian cities compared to the high competition over the “metro-to-metro” services between major cities such as Mumbai, Delhi, and Bangalore. The company is also planning to cut down its load factors to 87% levels after bringing it down to 79.6% in the first quarter.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.