IndiGo’s presentation for the analyst meeting has many insights and coupled with the known and unknowns, makes for some good predictions of where the airline would eventually head over the next decade. While the airline has not yet released the LOPA (Layout Of Passenger Amenities) for its A350s, 60 of which are on order, it has now said that it is looking to have 330+ seats on the A350s.
The A350-900 is certified for a maximum capacity of 440 passengers, with French Bee, the French low cost long haul carrier having configured the same with 411 seats, comprising 24 Premium Economy and 376 Economy class seats. French Bee operates four A350-900s and has Paris Orly as its primary hub. Another airline which operates the A350s with dense configuration is Air Caraïbes which has configured the A350-900 with 389 seats, comprising 18 Business, 45 Premium Economy and 326 Economy class seats.
While IndiGo focused on adding as many seats as possible in the past, the IndiGo of today is remarkably different from the IndiGo of yesteryears. As the airline mentioned 330+ seats on the A350s, I went checking on the configuration of A350-900 with some major operators and how it is stacked. Air India, which has inducted six A350-900s operates them with 316 seats comprising 28 Business, 24 Premium Economy and 216 Economy class seats. This is not a benchmark for IndiGo, nor Air India because Air India inherited the configuration from planes which were ready for Aeroflot and the deliveries stopped due to sanctions.
Two Widebody experiences
IndiGo has so far operated two different widebody aircraft, from two distinct operators. From Turkish Airlines, it leased a dense B777-300ER, with 7 business class seats – which it did not sell, and a massive 524 economy class seats. The flights were restricted to Istanbul. On the other hand, the Norse Atlantic damp leases which saw IndiGo have six Dreamliners at its peak with one slated to go back at the end of August sees 56 Premium Economy seats, which IndiGo sells as IndiGoStretch, its Business class product and 282 economy class seats, a total of 338 seats. When IndiGo says its own A350s will have over 330 seats, it is possibly an indication that the airline is happy with the total seats it has, while external shocks remain a challenge in its ability to make the routes work at current cost structure.
Slides in the presentation should not be looked at in isolation. The seamless connectivity which the airline talks about sees many reciprocal partnerships along with non-reciprocal. Most of these will move to a full fledge partnership over the years. Take a look at the names in the slide and consider the configurations which these airlines are running. Ring a bell? Most are into three class configurations, with some being premium heavy as well.
A premium cabin, nearly at par if not fully at par with the carriers with whom IndiGo will have future codeshares for trans-atlantic traffic will be helpful to get a larger slice of the market. Depending on how the codeshares are negotiated, the revenue dynamics change but there is no denying the fact that higher revenue always comes from premium passengers. This is where I see a need to have the IndiFlat or IndiGoFlat, a full blown Business class product with fully flat beds. What happens to the IndiGoStretch? The IndiGoStretch can become the premium economy product for the long haul market, similar to what Air France, KLM, British Airways offer, all of which are partners of IndiGo in one form or another.
The Edelweiss and Iberia configuration?
Edelweiss Air is a Swiss leisure airline and the sister company of Swiss International Air Lines and a subsidiary of the Lufthansa Group. The airline operates four A350-900s which are configured with 339 seats, comprising 30 Business, 63 Premium Economy and 246 Economy class seats. The Premium Economy seats are not in true sense premium economy but Economy Max, same seats, same configuration with nine abrest seats but higher leg room. However, Spanish carrier Iberia, operates the A350-900 with 348 seats, comprising 31 Business, 24 Premium Economy and 293 economy class seats. I feel that a configuration similar to Iberia or same as Iberia is better suited for IndiGo.
IndiGo has started offering USB charging with the XLRs along with hot meals, thanks to the ovens on the XLRs. It is a no brainer that the same would continue on the A350s. What might get added is the in-flight entertainment screens and can it add them only for select classes or make it universal?
I see a strong csae for IndiGo to add a traditional Business Class with full lie flat seats in a 1-2-1 abreast configuration in the A350s. This is too early to declare the LOPA for the airline, with the delivery schedule fluid as of now. We will have to wait to see if the airline wants to have a new class, which I am calling the IndiGoFlat or IndiFlat or it continues with its two class approach, but with a better Business class offering than its current seats.
Network Thoughts
The IndiGo presentation shows a very large circle for the A350s which can cover almost every part of the world, but the reality will be different than what a circle can cover. The A350s will struggle to go beyond New York / Newark in the United States, unless the airline decides to opt for longer range versions which Airbus offers, not necessarily the ULR. However, the route network will evolve over a period of time and not start with operations to the United States or Canada to begin with. There are opportunities in Europe, Africa and Australia which will probably be tapped first.
Does it sound very exciting and a great way forward? It possibly does but there is a need to be cautious with the whole plan, and not replicate what Jet Airways did, only to fail years later. The same mistakes with possibly the same partners can be costlier for IndiGo. Widebody aircraft burn far more cash than narrowbody and IndiGo has possibly experienced it first hand. The next few years, remain interesting to track IndiGo and hope that IndiGo and Air India don’t take on each other but take on the might of the foreign carriers to give India, what the country deserved for long – its own aviation brands.
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