New low-cost airline IndiGo to launch operations on Aug 4

New Delhi, July 31: IndiGo, India's newest low-cost airline, will start commercial operations on August 4 with first flight from Delhi to Guwahati and the same aircraft continuing to Imphal.

Promoted by InterGlobe Enterprises, Indigo had stunned many experts by placing an order of 100 single-aisle Airbus A320s valued at six billion dollars at the Le Bourget air show a year ago.

Last week, it took delivery of its first brand new aircraft with a single-class configuration of 180 seats. It will introduce a new A320-232 aircraft every month during the remainder of 2006, and nine more next year.

By December 2007, IndiGo's fleet will comprise a total of 15 aircraft. From August 10, it will add a non-stop daily service between Delhi and Pune, with a same-aircraft continuation to Bangalore.

IndiGo joins the growing number of low-cost, no-frills airlines like Air Deccan, SpiceJet and GoAir which have burst upon the skies and changed the dynamics of fast-growing industry.

''The Indian aviation sector is poised for exponential growth,'' said InterGlobe's managing director Rahul Bhatia. ''With rising disposable incomes of the middle class, the number of potential passengers for each aircraft is huge.'' Over 10 million travellers in India took to the skies for the first time in 2005-06. The number is likely to be 15 million in 06-07.

By 2006-end, IndiGo expects to fly 475,000 passengers with six planes. It will serve Delhi, Bangalore, Chennai, Guwahati, Imphal, Hyderabad, Kolkata, Mumbai, Nagpur and Pune with its first four aircraft.

''IndiGo is for people with things to do, places to be and people to see, who don't want to waste time, money or energy in the process,'' said its president and CEO Bruce Ashby. ''Our team has designed an airline with affordable fares that has cut red tape and hassles, opening up a country full of opportunities.'' The airline is providing its customers the choice to book tickets through multiple options. Customers can check schedules and fares and book flights by visiting or by using with a GPRS-capable mobile phone or PDA.

Alternatively, they can call at the IndiGo call centre at (0) 99103-83838, visit IndiGo airport ticket counters, IndiGo shops or participating travel agents.

The airline is also being backed by Mr Rakesh Gangwal, globally recognised for his management skills and expertise in the airline industry. The project has a start-up capital of Rs 100 crore and is expecting to reach economies of scale in 15 to 20 months.

''Our average fare will be in the range of Rs 3,000. IndiGo will follow a dynamic pricing model which means the early a passenger books, the less will it cost. As seats get filled, the price bar moves up.'' The no-frills airline will use all modern management techniques of a world class carrier like SouthWest, keep the costs compressed, try to fill up 75 to 80 per cent of seats and eventually connect all Indian cities with a population of over one million.

''There's plenty of demand to fill in all 100 planes we've ordered for deliveries spread over 10 years. Incomes among the Indian middle class are rising and aviation infrastructure is set to grow. So we're clearly on the right track, at the right time,'' said Mr Ashby.

Established in 1989, InterGlobe Enterprises is a leading travel conglomerate and enjoys a significant presence in the fields of aviation management, travel related services, travel technology, travel distribution services, hotel development and management services.

UNI