Indigo is one of the largest airlines in India, with the largest share in the domestic market of 57.5% and a fleet of about 300 aircraft operating across the world. At the beginning of June 2023, the airline announced a step up in its international operations by adding six new destinations across Asia and Africa. In its report released on 2nd June 2023, the company will connect Nairobi and Jakarta, Indonesia, with flights from Mumbai this August.
According to the newly appointed CEO, Peter Elfers, the strategy is part of a large-scale expansion aimed at gearing up the company to achieve new heights worldwide. This move would increase the company’s international destinations from the current 26 to 32, in addition to 78 existing domestic destinations.
The existing market gap in Kenyan airline services, brought about by the fact that Kenya is one of the largest Indian destinations for Indian business people and Kenyans flying to India for medical services and pursuing job opportunities, will be reduced.
However, this threatens Kenya Airways, which also operates on the same route (Nairobi- Mumbai). Kenya Airways has been struggling recently, recording a net loss of Kshs 38.2 billion at the end of December 2022, with the government taking USD525 million debt guaranteed to KQ following a default by the company.
This new competition from IndiGo will probably worsen the situation for KQ if the government does not intervene and approve the recently denied bailout for Kenya Airways in the coming financial year.
