IndiGo to enter regional aviation, fly smaller planes to hinterland

In a first, IndiGo opts for a dual fleet strategy

Latest News – The country’s largest airline, IndiGo has decided to foray in regional aviation space through smaller planes. In a significant change of strategy, the airline will be opting for a mixed fleet — a departure from the successful single fleet model and has signed a non-binding term sheet for purchasing 50 ATR-72 aircraft. “Assuming that the intended final purchase agreement is reached we expect to have 7 ATR-72 by March 2018 and induct upto 20 aircraft by December 2018,” the airline said in a statement declaring its performance for the December-March period and of FY 17.

Rival low-cost airline Spicejet has a fleet of Q400 Bombardier. Among the full-service carrier, national carrier Air India and Jet Airways have smaller planes in their fleet. “When we looked at the economics of the turboprop alternatives, ATR aircraft has less fuel burn than one for the other products, ultimately the aim is to have the right cost structure that the market it serves in,” IndiGo CFO Rohit Philip said.

As a result of IndiGo’s announcement, the government’s regional connectivity scheme will get a push as it will now have a major player like (Read More)

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