Edition 44
Sometime in 2018 and again in January 2019, I wrote an article about who would be the jetBlue of India. SpiceJet was adding MAX aircraft to its fleet, there were talks of codeshare and global expansion with Emirates in tow, IndiGo had placed an order for more planes, the A320neo issues seem to be improving and Jet Airways was going down gradually. One of the two had to make the move and latch on to a premium offering.
The fall of Jet Airways saw SpiceJet make the move and induct dual class aircraft which earlier operated for Jet Airways. All seemed going ahead well until the MAX groundings became a reality, followed by the pandemic. SpiceJet lost its way.
IndiGo on the other hand kept itself nimble and focused on whatever was available during the pandemic. The free cash, which every other carrier lacked, helped tide over. Additionally, the finance leased ATRs gave some cash with Sale and Leaseback deals.
The answer was clear in more ways than one that IndiGo would over a period of time take the jetBlue route, but why jetBlue? jetBlue started as an LLC, but had the frills like in-seat TV and food for purchase. The idea was to be middle of the market, fares which were slightly higher than LCCs and service which were at par or sometimes better than FSCs. Fourteen years after it was launched, the airline launched a business class – named Mint. Mint service was first offered on transcontinental flights, specifically on routes such as New York to Los Angeles and New York to San Francisco. This premium service featured lie-flat seats, some of which are even private suites, a curated meal service, and other upscale amenities designed to compete with the traditional business classes offered by legacy carriers. Mint marked a significant expansion of JetBlue’s offerings, as it ventured beyond its traditional low-cost carrier model to attract business travellers and those looking for a more luxurious flying experience.
The other areas where jetBlue left the traditional LCC features were having a loyalty program, codeshare and interline agreements. IndiGo already does the latter and is actively working on the former. IndiGo lies at these crossroads. Can it create a niche in the market with a business class product, offering the service on select routes where there is demand? The answer is yes.
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