‘COMPETITION KEEPS YOU ALERT ’
Pieter Elbers, IndiGo’s new CEO, talks about surviving in an intensely competitive market, retaining leadership position, and more
PIETER ELBERS, 52,
comes to IndiGo after spending nearly three decades with the world’s oldest passenger carrier, KLM Royal Dutch Airlines. Specially handpicked to consolidate the Gurugrambased low-cost carrier’s leadership position as well as drive its international expansion, Elbers says there is scope for multiple carriers in the Indian market. Edited excerpts from an interview:
What are your first impressions of the Indian civil aviation market?
Civil aviation in India is moving forward very fast. The fact that we have this growth, the fact that we have these plans, and the fact that the government in India is supporting air travel to all those smaller communities in Tier II and III cities… IndiGo is an important part of the execution of that vision.
How do you propose to adjust to the low-cost format at one of the world’s most cut-throat airline markets?
KLM, too, has a low-cost subsidiary, Transavia. Of course, the product is very different at IndiGo. But at the end of the day, low-cost or full-service is a choice that you make in positioning the product to your customer and their needs. The dynamics are the same. You need to make sure that your customers are treated well and that your employees are enabled to do a great job of running a safe and reliable operation. How does IndiGo plan to retain its leadership position while competing with a newly privatised Air India and a very young Akasa Air?
By continuing to do what we’re good at! The Indian aviation market is big enough for multiple airlines to operate. Yes, we’ll face competition, but competition keeps you alert and helps elevate the market. For a country
of India’s size, population, ambition and economic drive, there should be more than one airline. I find many of the questions to me are focussed on how we are going to compete with the Tatas. I could almost reverse it and say, how can Indian carriers collectively get back their market share on international routes? That would be a very interesting proposition.
You are scheduled to take deliveries of Airbus 321 XLRs by 2024. How do you propose to deploy them?
Today, all our international routes are within a certain range determined by the Airbus 321. The XLR will expand that range by enabling us to add destinations that are further off. Of course, one could look to Europe, but one could also look at Asia, or more precisely, South-East Asia.
So, when are we going to see IndiGo launching ultra-long-haul flights to destinations such as the US and Australia?
We haven’t decided on that as we are keeping all options open. Meanwhile, we will continue to develop our network, and when the time is ripe, [we will] take a decision.
Despite having many firsts to its credit, how come IndiGo doesn’t have a loyalty programme to date?
There is a Ka-ching card, which is a loyalty programme. We have people from our loyal customer base flying for work or holiday. It’s time to further build on that base. But are we considering more for the future? Yes, we are! Have we taken a final decision on how precisely we are doing to do that? No, we haven’t!