India’s largest airline, IndiGo, is confident that global economic disruptions such as tariff hikes will not hurt its long-term goals. Pieter Elbers, the Chief Executive Officer of IndiGo, shared that despite some short-term challenges caused by global developments, the airline remains committed to its plans for growth. Elbers assured that IndiGo will continue with its expansion strategy, aiming to double its current size by the end of the decade.
IndiGo Will Continue with Expansion Plans
Pieter Elbers stated that changes in global markets and economic challenges, such as tariff-related issues, have not altered IndiGo’s capacity expansion for the upcoming year. He emphasized that a large domestic market with significant untapped potential makes India a strong aviation base. While India cannot remain entirely isolated from global economic shifts, the airline’s long-term growth outlook remains positive.
Aviation Market Benefits from Large Domestic Base
The CEO explained that India’s domestic aviation market gives local airlines a strong foundation to build on. The presence of a huge customer base allows airlines like IndiGo to sustain growth even during short-term global uncertainties. He acknowledged that while there may be small disruptions or unexpected gains in some quarters, they do not affect IndiGo’s overall business direction.
IndiGo Sees Duopoly as Opportunity
When asked about the dominance of IndiGo and the Tata group in the Indian aviation sector, Elbers remarked that having large, globally competitive Indian airlines is beneficial for the country. He pointed out that market consolidation is common worldwide, and similar trends are taking shape in India. According to him, this development strengthens the ability of Indian airlines to compete internationally.
Commenting on the current review of international seat agreements by Indian authorities, Elbers noted that giving away too many flying rights to foreign airlines limits the potential for Indian carriers. He believes such actions are missed opportunities, especially when foreign players benefit more from the existing arrangements.
Supports Job Growth Through Aviation Services
Elbers emphasized the need for more aviation-related infrastructure, such as Maintenance, Repair, and Overhaul (MRO) facilities in India. At present, IndiGo sends its aircraft abroad for maintenance. He highlighted the employment opportunities in this sector and noted that IndiGo already employs over 60,000 people.
On the topic of airfares, Elbers mentioned that fare increases happen mostly during peak seasons. He disagreed with the idea of capping domestic fares, explaining that airlines must be allowed to function based on market demand. Events like the Kumbh Mela may cause temporary fare hikes, but overall, India remains one of the most affordable and competitive aviation markets.
IndiGo Plans Operations from Navi Mumbai Airport
Looking ahead, IndiGo plans to operate flights from the new Navi Mumbai airport once it becomes functional later this year. Elbers said the airline is open to expanding at newer airports while also continuing its services from older ones. The Navi Mumbai airport is expected to serve customers from both Mumbai and Pune.
