IndiGo Chief Executive Officer Willie Walsh has criticized the double standard in how airport and airline profitability are perceived, stating that airlines are "looked down upon" when they make a profit, unlike airports. Speaking at Aviation India 2026 in Delhi, Walsh urged for stronger partnerships between airlines and airport operators, emphasizing the need for operators to focus on their investments.
IndiGo International Expansion Strategy
Despite challenges like high fuel costs and rupee depreciation, IndiGo is gearing up for an ambitious international expansion. Walsh expressed confidence in the airline's ability to navigate these hurdles while pursuing long-haul growth and maintaining the efficiency of its core short-haul network.
Key elements of IndiGo's international expansion include:
- New Aircraft: The airline plans to induct Airbus A321 XLR aircraft for expanded overseas routes and will begin receiving wide-body A350-900 planes from the second quarter of 2028.
- Fleet Configuration: The first ten A350 aircraft will feature a three-class configuration, including 16 flat-bed seats in business class, along with premium economy and economy seats.
- Fleet Growth: IndiGo aims to grow its fleet to 600 aircraft by 2030, up from over 440 currently. International capacity is projected to account for 40 percent of its network under its Vision 2030 targets.
Walsh, who previously criticized airport charges and taxes during his tenure with the International Air Transport Association (IATA), reiterated his stance. He argued that lower airport charges and taxes are crucial for fostering aviation growth in India, and all stakeholders must focus on their cost bases.
"I have not changed my view. Airport charges are too high and so this market would do much better if we had lower taxes. So lower taxes, lower airport charges, that is the way forward."
The CEO highlighted that India's international passenger traffic, at 78 million last year, is less than what a single airport like Heathrow handles, underscoring the significant potential for India-based long-haul operations. He asserted that IndiGo's efficient operations and robust domestic network provide the necessary foundation for success in the long-haul market.
Maintaining Core Efficiency
Walsh stressed that IndiGo would not compromise its highly efficient narrow-body, short-haul operations to support its new long-haul services. He noted that the airline's significant domestic network naturally feeds its long-haul operations without needing a network redesign at its home airports.
IndiGo also expects to have 14 narrow-body A321 XLR aircraft by the end of December 2027, with four currently in service and another planned by year-end. These longer-range aircraft will enable connections to more overseas destinations, while the airline's focus remains on its cost-efficient short-haul base.
Navi Mumbai Airport and Future Outlook
Addressing concerns from foreign airlines regarding the proposed partial transfer of international flights to Navi Mumbai airport, Walsh stated he was unconcerned. He views Navi Mumbai as a significant opportunity for IndiGo's international long-haul expansion, confirming the decision to shift some overseas flights aligns with the airline's interests.
IndiGo, which reported a loss of Rs 1,879.1 crore in the September quarter due to high fuel costs and rupee depreciation, expects to grow in the third quarter. Walsh acknowledged the challenging industry environment but expressed confidence in IndiGo's ability to navigate these difficulties.