New Delhi: With over 50 per cent of the market under its belt, IndiGo Airlines has no doubt been the king of low-cost carriers in the country. But the good times now seem to be under threat.
Soon, IndiGo will have to defend its market from AirAsia, which has entered India in collaboration with the Tatas, on the one side, and fend off competition on international routes, especially to West Asia after Jet Airways's alliance with Etihad, on the other. Experts say while AirAsia will kick off a price war by dropping fares, an oft-repeated strategy that it is known for globally, the Jet-Etihad partnership will stir up competition on routes between India and West Asia by offering more connectivity to woo passengers.
But IndiGo is no sitting duck. The low-cost carrier, which has successfully kept its costs down and has built up efficiencies which are comparable to global low-cost carriers, is putting together a "stick to the knitting" strategy to take on the twin challenges. The airline, of course, is keeping its plans closely guarded, but Business Standard talked to its associates like travel companies, vendors and aircraft manufacturers to get the broad contours of its strategy.
16/05/13 Surajeet Das Gupta/Business Standard
