Wednesday, May 15, 2019

Business class at budget price: How Indigo plans to lure Europe-Asia fliers

Company News

Low-cost airlines, the pioneers of brief discomfort at bargain prices, have struggled to master long-haul flights. Now one of the world’s most successful budget carriers is considering cut-price business class seats as a way into the Europe-Asia market.

India’s IndiGo, which currently flies as far as Istanbul, is mapping out an ambitious long-distance network. The airline aims to start one-stop trips further into Europe within six months, Chief Executive Officer Ronojoy Dutta said in an interview in New Delhi last week.

IndiGo has captured almost half the Indian market in just over a decade by offering cheap, punctual flights -- and charging extra for almost anything else. Dutta’s long-haul plans are forcing a product overhaul to help passengers endure longer flights and he’s considering everything from extra snacks to a brand-new business class.

“Once you get to six, seven, eight hours, the body gets tired, people need to use the washrooms more, people need to eat more frequently, all of those things change,” Dutta said. “We have to redesign our product. Is it more pitch, is it more food, is it more hot towels, is it a business class?”

Patchy legacy

Success could upend a long-haul market between Asia and Europe that’s long been the preserve of full-service carriers from Singapore Airlines Ltd. and British Airways to Emirates Airline and Cathay Pacific Airways. While IndiGo has become Asia’s largest low-cost carrier by market value, other no-frills rivals that have tried to go long-haul have left a hit-and-miss legacy.


 Discount carrier Norwegian Air Shuttle ASA, which launched services on intercontinental routes, has been weighed down by losses after a rapid expansion.

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