IndiGo's new business class may cut prices by a third, impacting Air India

07 Jun 2024 CW Team

According to CEO & MD Campbell Wilson, speaking at the CAPA India Aviation Summit, the product upgrade encompasses 25,000 seats. Although the decision to undertake this upgrade was made in mid-2022, Wilson indicated that the entire process would not conclude until FY26. Additionally, Wilson mentioned the impending merger of Air Vistara with Air India, which is slated to be operationally completed by the end of the calendar year.

The magnitude of the transformation is substantial, as highlighted by Wilson, who cited the modernization of multiple outdated systems as a prime example. He emphasized the need to address various shortcomings within Air India, including outdated reservation systems, widespread use of Gmail for communication among employees, aging aircraft, and outdated componentry. Wilson acknowledged the challenges faced in accelerating the product upgrade, particularly due to ongoing supply chain constraints.

Despite Air India?s efforts towards transformation, competition remains active. IndiGo, India?s largest airline by passenger volume, is aggressively challenging Air India?s position. IndiGo has refined its low-fare strategy to perfection, dominating routes with dense traffic and even those with limited competition or attempts by regional carriers to stimulate the market.

In a significant departure from the traditional low-cost carrier model, IndiGo has announced plans to introduce business class service on domestic metro and business routes. CEO Pieter Elbers, speaking at the CAPA India summit, declared that IndiGo has moved away from the traditional low-cost airline station. This strategic shift includes placing a firm order for 30 Airbus 350-900 wide-body aircraft.

The decision to offer premium cabin services reflects IndiGo?s intent to directly compete with the Air India group, which currently provides premium cabin seats on Air India and Vistara flights. An industry veteran familiar with IndiGo?s operations noted that while the idea of premium cabin services had been under discussion internally for some time, the decision to proceed was influenced by the perceived shortcomings within the Air India group.

Air India?s transformation progresses steadily as the Tata group endeavours to merge four airlines into two entities, initiates a comprehensive product upgrade exercise, and begins driving synergies in various operational aspects. Despite the concerted efforts of the new owners, the project is anticipated to require several more months to reach completion. According to CEO & MD Campbell Wilson, speaking at the CAPA India Aviation Summit, the product upgrade encompasses 25,000 seats. Although the decision to undertake this upgrade was made in mid-2022, Wilson indicated that the entire process would not conclude until FY26. Additionally, Wilson mentioned the impending merger of Air Vistara with Air India, which is slated to be operationally completed by the end of the calendar year. The magnitude of the transformation is substantial, as highlighted by Wilson, who cited the modernization of multiple outdated systems as a prime example. He emphasized the need to address various shortcomings within Air India, including outdated reservation systems, widespread use of Gmail for communication among employees, aging aircraft, and outdated componentry. Wilson acknowledged the challenges faced in accelerating the product upgrade, particularly due to ongoing supply chain constraints. Despite Air India?s efforts towards transformation, competition remains active. IndiGo, India?s largest airline by passenger volume, is aggressively challenging Air India?s position. IndiGo has refined its low-fare strategy to perfection, dominating routes with dense traffic and even those with limited competition or attempts by regional carriers to stimulate the market. In a significant departure from the traditional low-cost carrier model, IndiGo has announced plans to introduce business class service on domestic metro and business routes. CEO Pieter Elbers, speaking at the CAPA India summit, declared that IndiGo has moved away from the traditional low-cost airline station. This strategic shift includes placing a firm order for 30 Airbus 350-900 wide-body aircraft. The decision to offer premium cabin services reflects IndiGo?s intent to directly compete with the Air India group, which currently provides premium cabin seats on Air India and Vistara flights. An industry veteran familiar with IndiGo?s operations noted that while the idea of premium cabin services had been under discussion internally for some time, the decision to proceed was influenced by the perceived shortcomings within the Air India group.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..