Fares on IndiGo’s long-haul routes likely to be 30% lower

TIL Desk/Business/New Delhi/ IndiGo may adopt a two-class configuration in its long-haul routes. The airline plans to offer a small business class along with dense economy seating, and unbundled products like meals, priority boarding and check-in, and seat selection to economy passengers.  Long-haul low-cost carriers (LCCs) like Scoot and AirAsia X offer a similar configuration.

“If we expand our operations to include long-haul international routes, we may have to consider full-service flights, business-class seating, code-sharing arrangements,” InterGlobe Aviation, parent company of IndiGo, mentioned in its draft red herring prospectus (DRHP), which was filed with the regulator ahead of its proposed share sale.

A senior IndiGo official said that the airline plans to offer fares that are at least 30 per cent lower on the long-haul routes. “We will offer a small business class, along with high-density economy class, with 25 per cent to 30 per cent lower fares. We have a cost structure that is the lowest in the world and that will allow us to bring down the fares,” the IndiGo executive said.