IndiGo to Launch Premium Class, Challenging Air India's Dominance

Mumbai: Indian carrier IndiGo is set to launch its premium class service on select routes from mid-2024, offering passengers a comfortable seating experience similar to business class at a fraction of the cost.

The airline plans to introduce 150 new premium seats on its Delhi-Mumbai route and all flights on the Delhi-Bengaluru route within two years. IndiGo's CEO Pieter Elbers has announced that the airline will operate with its new cabin product on 45 aircraft by the end of 2025.

While Air India offers luxurious amenities such as complimentary lounge access and hot meals to business class passengers, IndiGo has opted for a more minimalist approach. However, at Rs 18,000-20,000, its premium seating is competitively priced against Air India's premium economy fares.

Industry analysts predict that this increased competition will benefit passengers, with both airlines increasing their premium seating capacity. Aviation consultancy firm CAPA expects the increase in seats on domestic and select international routes to disrupt pricing of business class and premium economy.

Air India has been actively trying to maintain its advantage over IndiGo by utilizing Vistara aircraft and newly acquired planes on metropolitan routes. The airline's CEO Campbell Wilson recently stated that it will dominate metropolitan routes with 55% seat capacity after the Vistara merger.

However, Air India's current fleet is largely comprised of older aircraft, which will be renovated as part of a $400 million project to upgrade 67 older planes by mid-2025. New aircraft are expected to arrive in 2026, supplementing the airline's existing order of 470 aircraft.

The competition between IndiGo and Air India is set to intensify the domestic business class segment, with passengers benefiting from increased choice and more affordable options.