Indigo to Launch International Low Cost Flights

Indigo Airlines

The Gurgaon based Indian domestic carrier Indigo will be launching its first International flights on Dubai Delhi routes from First of September, 2011.
Indigo has been in an expanding mode and recently it entered into aircraft buying deals with Airbus for 180 Aircraft, some of which are meant for international flight routes as well.

The low cost flights as present constitutes only 5% of the total international flights and it is widely perceived by the airlines experts that the sector has much scope for growth given low international demand for air travel and losses of many larger airlines. As regarding India, from where the Indigo belongs, there have been strong growth in domestic air travel and Indigo has emerged as  one of the largest domestic carrier. Many Middle East cities such as Dubai and Sharjah are sought after routes mainly by the Indian residents and it do make good sense to launch low cost short distance flights on these routes. Further cities in South East Asia such as Bangkok also are sought after mainly by the outbound air travelers in India.

Indigo will fly aircraft with 180 seats the seat as it uses in the domestic flights, with a no frill model which means no in-flight entertainment,  Food or beverages. Though the competition from other entrenched players cannot be underestimated. Emirates, Tiger Airways, Air Arabia, Singapore Airlines, Air Asia and even Air India have operations on these routes and they may further decrease the tickets prices. The incentive for International flights, as per the sector analyst is not father to locate. Air fuel taxes for domestic flights are around 30 % while for the international flights it is just 4%. So the same no frills aircraft if used for short distance international flights, will save fuel cost and may actually lead to more profits.