Indigo Eyes European Market Amid Intensifying Competition with Air India

Indian low-cost carrier IndiGo is pushing ahead with its plans to foray into the European market with plans to recruit personnel in London, Paris, and Amsterdam and finalising a new wet lease with Norwegian carrier Norse Atlantic, reported the Economic Times.

The airline has opened vacancies for the roles of airport manager and chief security manager for the upcoming summer season. The report says the roles will be filled by internal candidates.

Meanwhile, it has also finalised a deal with Norwegian carrier Norse Atlantic to lease up to six long-haul Boeing 787 aircraft. The report says two of these planes will be deployed from February, while the other four may start flying by September this year.

The wet lease agreement with Norse Atlantic, will provide the Gurugram-based carrier with pilots and engineering support, along with the aircraft that can fly on long international routes.

IndiGo currently operates two Boeing 777 aircraft to Istanbul under a similar agreement with Turkish Airlines. It is also leasing 6 Boeing 737 Max aircraft from Qatar Airlines and 17 A320ceo planes from a Latvian-based charter firm called SmartLynx Airlines.

Recently, the Indian government eased rules for wet leasing for airlines to help airlines facing supply shortages. The new rules allow airlines to operate these aircraft on routes other than those they are originally leased for.

In a statement to ET, IndiGo said that wet leasing long-haul aircraft is an “interim solution” for them that addresses the growing demand amid global supply chain challenges. Last year, IndiGo placed an order for 30 A350-900 widebody aircraft, but the delivery of these planes is not expected before the start of 2027.

Intensifying Competition

These aircraft will allow the carrier to start new non-stop flights on longer international routes, including to the US, Australia, and Europe. It will also put the low-budget airline in competition with Air India.

The Tata Group-owned airline in December announced an order of 10 widebody A350 aircraft to Airbus, in addition to the 2023 order of 40 A350s.

Together, Air India Group and IndiGo control over 90% of the domestic market share in India. They are now eyeing further expansion, with IndiGo launching its premium business class offering, called IndiGoStretch, on select flights starting in January, and Air India completing its merger with Vistara.

IndiGoStretch offers wider seats, greater legroom, headrests, curated meals, and priority services at a price point lower than competitors' business class fares. It aims to attract cost-conscious business travelers and premium economy passengers.

Meanwhile, the merger with Vistara will allow Air India to offer a blend of comfort and affordability, along with giving it a significant chunk of budget travellers. According to data from the Directorate General of Civil Aviation (DGCA), Vistara held 9.1% of the Indian domestic aviation market share, placing it third after IndiGo and Air India.