Indigo Airlines, traditionally known for its no-frills, low-cost model focused on efficiency and cost-cutting, is undergoing a significant strategic shift with an expansion into premium services and global markets. Key developments include a collaboration with hotel group Accor to share membership points, the introduction of "Stretch" seats akin to business class with hot meals, and the launch of a frequent flyer program called Indigo BluChip, which has rapidly attracted millions of members. Furthermore, Indigo is diversifying its fleet beyond its single-model Airbus A320 policy by ordering Boeing aircraft and other Airbus models, a departure from its founder's original strategy of simplicity and cost control. This reinvention is driven by a desire to capture the lucrative Indian corporate traveler segment and compete on a global scale, offering a range of services from premium options like "Stretch" and BluChip to economical fares like "IndiGo Lite" (cabin baggage only), aiming to be a comprehensive provider for various travel needs.

Indigo Airlines, traditionally known for its no-frills, low-cost model focused on efficiency and cost-cutting, is undergoing a significant strategic shift with an expansion into premium services and global markets. Key developments include a collaboration with hotel group Accor to share membership points, the introduction of "Stretch" seats akin to business class with hot meals, and the launch of a frequent flyer program called Indigo BluChip, which has rapidly attracted millions of members. Furthermore, Indigo is diversifying its fleet beyond its single-model Airbus A320 policy by ordering Boeing aircraft and other Airbus models, a departure from its founder's original strategy of simplicity and cost control. This reinvention is driven by a desire to capture the lucrative Indian corporate traveler segment and compete on a global scale, offering a range of services from premium options like "Stretch" and BluChip to economical fares like "IndiGo Lite" (cabin baggage only), aiming to be a comprehensive provider for various travel needs.

Indigo Airlines, traditionally known for its no-frills, low-cost model focused on efficiency and cost-cutting, is undergoing a significant strategic shift with an expansion into premium services and global markets. Key developments include a collaboration with hotel group Accor to share membership points, the introduction of "Stretch" seats akin to business class with hot meals, and the launch of a frequent flyer program called Indigo BluChip, which has rapidly attracted millions of members. Furthermore, Indigo is diversifying its fleet beyond its single-model Airbus A320 policy by ordering Boeing aircraft and other Airbus models, a departure from its founder's original strategy of simplicity and cost control. This reinvention is driven by a desire to capture the lucrative Indian corporate traveler segment and compete on a global scale, offering a range of services from premium options like "Stretch" and BluChip to economical fares like "IndiGo Lite" (cabin baggage only), aiming to be a comprehensive provider for various travel needs.

On the menu: truffle cream cheese and kale tart, as well as Apple and brie crostini with honey. In the events room, a near-360-degree giant infinity screen simulates a pilot’s view of landing at Indian city landmarks. Not to mention some virtual reality walk-throughs and an airport-like conveyor belt with goodies guests can take away.

These are not the settings one expects when an airline renowned for its low-cost ‘no frills’ model makes an announcement. But as exotic and lavish were the settings, as perhaps the announcement itself, which signalled a change in strategy itself: Indigo’s collab with hotel group Accor (which has brands like Raffles and Novotel in its fold) to share and interchange membership points.

Really? Luxury hotels and frequent flier miles? Recently, the airline started offering a Business Class-like feature with larger seats, more leg space and hot meals catered to by Oberoi’s flight kitchen (a world apart from cold, soggy Junglee sandwiches). There is also now a frequent flier programme, Indigo BluChip, which lost no time in amassing 1.3 crore members since its recent launch.

And that’s not all: its rapid expansion has seen Indigo go beyond its workhorse Airbus A320  ‘single model aircraft only’ policy (because a single model helps in standard maintenance and spare parts requirements, keeping costs under check) by ordering Boeing planes as well as other models from Airbus. 

All these fly in the face of (pun intended) the whole model that Indigo founder Rahul Bhatia built up and astounded the Indian aviation market with its tenacity — a single class, a single type of aircraft, no miles, no lounges and no special services. And if it can be charged, charge for it, let the rupee keep trickling in whichever way possible. The idea is to keep things simple, focusing on the core: turn around fast, and turn around a profit fast.

In addition to the by-now Indigo modus operandi of getting hefty discounts from aircraft makers through bulk orders, only to then sell them to leasing companies at a profit and lease them back at a margin, Indigo had shown how a no-frills model focused on revenue generation could be so potent even in a fickle, razor-thin-margined business like air travel. So while the likes of Kingfisher tried to offer good times in the skies only to see bad times galore and Air India survived by the edge of its teeth thanks to fund infusion from the Tata kitty, Indigo showed what it meant to be lean, mean, flying machines.

All that is changing, as the airline reinvents itself for newer horizons: its eyes are set on a global market now, and hence the new plethora of services on offer. Having captured the Indian masses, it is now trying to mop up the ones that have traditionally been out of its reach, the lucrative Indian corporate traveller. For all the recent spike in holiday and pilgrimage travel by the Indian middle-class, business travel remains the biggest chunk in the country. And by offering frills like ‘stretch’, its business-class offering, as well as BluChip, it hopes to mop up such segments, too.

Amidst all these premium service add-ons, such hyper-segmentation is meant to sex up its offerings as it goes global; one should also not forget another interesting new feature the airline started recently — IndiGo Lite, which is a cabin baggage-only economical fare. Indigo wants to be everything, everywhere, all at once.

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