With the fresh order of 250 Airbus 320Neos, IndiGo has changed the game for all other airlines operating in India. In fact, its mega aircraft order shows not just immense confidence in the Indian growth story but also in its own ability to inch ahead of other airlines, whether they are low cost competitors or legacy carriers.
Can competitors disrupt the IndiGo fairy tale growth? IndiGo is following in the footsteps of aviation industry upstarts like Etihad Airways and its other Gulf cousins - airlines which are taking competition to the doorstep of powerful American and European carriers by massive fleet expansion and aggressive wooing of the global traveller. Rapid and ambitious fleet expansion is the key to this aggression. Can domestic competitors to IndiGo rise to the challenge, given their weak balance sheets and continuing financial woes?
Bombarding the Indian market with capacity is a game IndiGo has long been adept at.
It is already a market leader by a comfortable margin with its fleet of 97 operational aircraft and accounts for 40 percent of the domestic market in terms of passengers. Its victory is sweeter since it operates just about a fourth of the total aircraft in the Indian market but has managed to corner more than a third of all domestic passengers. Global aviation consultancy CAPA has estimated IndiGo's market share will reach 50 percent by next year.
18/08/15 Sindhu Bhattacharya/First Post
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Can competitors disrupt the IndiGo fairy tale growth? IndiGo is following in the footsteps of aviation industry upstarts like Etihad Airways and its other Gulf cousins - airlines which are taking competition to the doorstep of powerful American and European carriers by massive fleet expansion and aggressive wooing of the global traveller. Rapid and ambitious fleet expansion is the key to this aggression. Can domestic competitors to IndiGo rise to the challenge, given their weak balance sheets and continuing financial woes?
Bombarding the Indian market with capacity is a game IndiGo has long been adept at.
It is already a market leader by a comfortable margin with its fleet of 97 operational aircraft and accounts for 40 percent of the domestic market in terms of passengers. Its victory is sweeter since it operates just about a fourth of the total aircraft in the Indian market but has managed to corner more than a third of all domestic passengers. Global aviation consultancy CAPA has estimated IndiGo's market share will reach 50 percent by next year.
18/08/15 Sindhu Bhattacharya/First Post
