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The magnitude of the transformation is substantial, as highlighted by Wilson, who cited the modernization of multiple outdated systems as a prime example. He emphasized the need to address various shortcomings within Air India, including outdated reservation systems, widespread use of Gmail for communication among employees, aging aircraft, and outdated componentry.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

07 Oct 2025

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Infrastructure Transport

07 Oct 2025

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Infrastructure Transport

07 Oct 2025

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..