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We attended InterGlobe Aviation’s (IndiGo) analyst meet held at its iFly Training Centre (Gurugram) on 23rd Mar’23. The airline remains focused on growth (>15% ASK growth in FY24, doubling the fleet by 2030) and internationalisation (increase ASK
mix to 30% over next two years from 23% in 9MFY23). These goals are intended to be achieved within the already existing business framework (low cost, hassle-free service, on-time operations with uniform fleet). Q3FY23 was an inflection point as per
the management considering that it proved IndiGo’s ability to successfully operate at a larger scale than it did pre-covid. We remain impressed with the capacity- building efforts in all aspects which includes involving people, processes and technology – which are long-term business moats. Key takeaways of the meet include: a) fleet guidance of 350 aircraft in FY24, which is a positive surprise; b) 30% international ASK mix in two years, which should keep the domestic supply scenario
balanced; c) expectation of strong yields in Q4FY23 adjusted for

* Robust operations evident through numbers, like 1) 1,800 daily departures, 2) flying to more than 104 destinations (78 domestic and 26 international), 3) fleet size >300 aircrafts 4) ~500 Aircrafts on order.

*Strategic focus remains on internationalisation: IndiGo currently flies to 26 international destinations with 75 international city pairs and 7 strategic partners. There will be an additional 30 destinations in Europe through strategic partners while
the airline will be adding Nairobi, Jakarta and some Central Asian destinations. IndiGo currently has 30 codeshare destinations with Turkish Airlines, which is the only two- way code share agreement amongst seven partnerships. IndiGo plans to increase itsinternational ASK share from ~23% in 9MFY23 to 30% over the next two years.

* Three strategic pillars to support growth: 1) Reassure: Company will continue to perform on the lines of affordable fares, on-time performance, courteous & convenient service, and unparalleled network. 2) Develop: This involves capacity-building
initiatives with people, processes and technology in line with growing size and scale. 3) Create: This is about planning the next phase of growth combining strong domestic operations with international aspirations. Company also identifies cargo operations
and loyalty programs as key cross-sell / upsell opportunities. Number of subscribers

* Key targets for FY24 include: 1) Reach fleet size of 350 (a positive surprise), 2) capacity growth north of mid-teens over FY23, 3) reach total PAX count of 100mn, 4) add 10-15 destinations, 5) increase the head count by 5,000.

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