IndiGo’s move to acquire wide-body planes augurs well for Indian aviation. Long-haul international routes tend to be more profitable, and this decision could also contribute to establishing India as an aviation hub, as per rating agency CRISIL.
Until January of the previous year, IndiGo solely operated a fleet of single-aisle Airbus aircraft. However, in February 2023, it expanded its operations by introducing wide-body Boeing 777 aircraft, which were wet-leased from its codeshare partner, Turkish Airlines. Presently, the airline operates two wet-leased B777 aircraft, serving routes connecting Delhi and Mumbai to Istanbul.
IndiGo’s expansion into wide-body aircraft
On Thursday, the airline revealed its firm order for 30 wide-body Airbus A350-900 aircraft, equipped with Rolls-Royce’s Trent XWB engines. Additionally, the airline retains the option to procure an additional 70 aircraft of the same model.
The IndiGo’s A350 aircraft order signifies a positive development for the industry, given the comparatively higher profitability of international long-haul routes. This move also presents opportunities for innovative combinations, leveraging the strong domestic connectivity offered by Indian carriers, stated Jagannarayan Padmanabhan, Senior Director & Global Head of Transport, Mobility, and Logistics Consulting at CRISIL Market Intelligence and Analytics, on Friday.
Presently, among Indian carriers, only Air India and Vistara operate wide-body aircraft in their fleets. However, IndiGo and SpiceJet have leased some wide-body planes on a wet-lease basis.
Padmanabhan noted that the portion of international traffic originating and terminating in India, served by Indian airlines, has steadily increased to about 43 percent in recent years. Consequently, both Air India and IndiGo have identified this as a strategic area for expansion.
Padmanabhan emphasized that IndiGo’s recent order for long-haul flights should be viewed within this framework. Diversifying its fleet, particularly with wide-body aircraft, has become essential for the carrier to sustain its competitive advantage on long-distance routes and appeal to both leisure and business travelers.
He also noted that the order would bolster India’s position in advocating for the establishment of an aviation hub at one of the major airports.
IndiGo anticipates receiving the A350-900 aircraft starting in 2027.