India Foxtrot Echo – IndiGo’s foray into premiumization of services?

In September 2019, a sudden set of tweets (it was still twitter then) announced the launch of In-Flight entertainment in IndiGo. Most looked at the advertisements or press releases and took to social media excitedly. A look at the details and one realised it was a deal with Sonyliv where the airline had a partnership. A discounted seven day pricing allowed you to download anything (before the flight) and view it in the Sony LIV app while flying. Essentially there was nothing beyond the discount code that IndiGo would provide, it was your money, your phone, your app and your downloads. 

The whole IFE saga of 2019 either remained a non-starter or was engulfed with the pandemic. Cut to 2024 and IndiGo is a very different airline than what it was in 2019. The airline is more aggressive, has spread wide and could have a robust large competition unlike the fragmented one of 2019. 

The real IFE of 2024

IndiGo will trial new entertainment content as part of digitization and will be available to customers inflight using the IndiGo app. The trials will continue for a period of three months starting May 01, 2024 and be restricted to Delhi – Goa sector. The airline has not specified if it would be for flights to Dabolim or Mopa or both. IndiGo operates 43 weekly services to Goa – Dabolim from Delhi, while it operates 7 weekly to Goa – Mopa from Delhi. 

The airline has said that it has upgraded its app to provide options to watch popular blockbuster movies, TV shows, moving maps, games as well as a wide range of music totalling over 200 hours of content. Customers will have to carry their personal Bluetooth/wired headphones to enjoy the in-flight trial service.

What is next?

In one of the post results analyst calls, IndiGo confirmed the plan of having a loyalty program. Additionally, there have been murmurs about the airline planning to configure its planes to have a business class

A wireless entertainment option with BYOD (Bring Your Own Device) is relatively cheaper, cost effective and does not add weight to the plane unlike the old seatback system. The content refresh is easier as well. Currently, Vistara has its own streaming option “Vistara World”, while the erstwhile AirAsia India planes had Airflix. Air India Express continues to advertise Airflix on its website. SpiceJet also had plans of rolling out wireless IFE but the airline has been dodging one problem after another. 

I have said in 2018 that between SpiceJet and IndiGo, one will try to become the jetBlue of India – which started as an LCC but has since moved to offer premium business class seats. SpiceJet and IndiGo had a neck to neck change back then with SpiceJet announcing codeshare with Emirates and showing global ambitions, all of which is now grounded. IndiGo on the other hand has gone from strength to strength even when hit by the Pratt & Whitney engine issues. 

Will the business class passenger see value in cold meals or the airline will (finally) budge and add ovens? 

Network Thoughts

The trials are likely to be with one or two aircraft, which will be deployed on the same route for the three months, unless there is a mobile device which can move from one aircraft to another. These trials will also pave the way for the future of a subfleet. From a standardised A320 fleet with 180 seats, the airline now has a fairly complex mix of aircraft. This is for the common eye, dive deeper and you know the complexities when it comes to MTOW, ETOPS and more. With such a complexity existing, why not add another one with a subfleet which has Business class seats?

What I have found puzzling is the need to have a loyalty program for an airline which relied on low cost being the only loyalty attractor? The reason could lie in moving up the value chain. Will it make more from the loyalty than what it spends on the program?

All in all, what will be the most challenging issue in the streaming process? The lack of power ports in the plane. Most phones these days charge very quickly, but at the same time streaming takes away a lot of battery. The airline kept the charging option away even when it went for the new recaro seats in 2022.

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