ISTANBUL—IndiGo’s massive order backlog and fleet expansion plans are supported by the growth potential of the Indian domestic and international markets, says CEO Pieter Elbers.
The airline has nearly 500 aircraft on order, ensuring “a steady flow of aircraft” over the next seven to eight years, Elbers said during the IATA AGM. The airline intends to double in size by the end of this decade.
Elbers said he is “very comfortable these [order] numbers match” the forecast development of the Indian market.
India is relatively underpenetrated with air service, Elbers said. He noted that India has just 0.5 aircraft per million people, versus 3.1 aircraft per million for China and 15 per million for the European Union.
IndiGo has 40 aircraft due to be delivered in the current fiscal year, which extends through March 2024. It is targeting capacity percentage growth in the “high mid-teens” this year, Elbers said.
He said the carrier has been able to meet its capacity guidance despite supply chain challenges, mainly by extending some of its leases and wet-leasing two Boeing 777s from Turkish Airlines.
Reuters reports that IndiGo is preparing to place further orders for about 500 aircraft. Elbers declined to comment on the report, however.
The carrier expects to carry 100 million passengers in the current fiscal year, which would be up from 86 million in the prior year, and 75 million per year before the pandemic.
IndiGo serves 78 cities in India, and will continue to expand domestically as new airports are opened in the country, Elbers said. One of the carrier’s priorities is to push further into international markets. It serves 26 international destinations now, but recently announced additions will increase this to 32.
The airline has been growing its route network to its international destinations. For example, it flies from seven cities in India to Singapore, and from 11 Indian cities to Dubai.
Elbers said it is too early to tell whether lessors will be more wary of leasing aircraft to Indian carriers following a decision by Indian courts to prevent companies reclaiming leased aircraft from bankrupt airline Go First.
