IndiGo follows Air India in trimming Europe operations, drops Manchester – Firstpost

When IndiGo inducted its first damp-leased Boeing 787-9 Dreamliner from Norse Atlantic Airways, the move represented far more than just the addition of another aircraft type. It marked the beginning of IndiGo’s long-awaited foray into the long-haul market and signalled ambitions of an airline that had spent nearly two decades dominating India’s domestic skies.

The Dreamliners allowed IndiGo to rapidly enter the European market without waiting for the arrival of its Airbus A350 fleet later this decade. Services to destinations like Copenhagen, Manchester, and Amsterdam, demonstrated that the airline was finally prepared to challenge established international competitors and build a meaningful global presence.

However, barely months into the operation, the economics surrounding long-haul flying from India has changed dramatically. After pulling out of Copenhagen, its first European route with the Dreamliner, the airline will also pull out of Manchester after August 31 — the airline currently offers services to Manchester from Delhi and Mumbai.

Airspace closures

The prolonged closure of the Pakistani airspace for Indian carriers has fundamentally altered the economics of westbound operations from India. For decades, flights to Europe benefited from direct routes running through Pakistani airspace. Departures from Delhi, Mumbai, Bengaluru, and Ahmedabad could access efficient westbound corridors, keeping flight durations competitive and fuel consumption under control. That advantage no longer exists.

Indian carriers are now forced to take longer routes over the Arabian Sea and other international corridors before turning towards Europe. On paper, the additional flying time may appear manageable. In reality, however, even an extra hour can significantly alter route economics in long-haul aviation. This is especially true currently, with the West Asia war keeping the airspace over Iran and surrounding regions out of bounds.

Longer routes increase fuel consumption, crew costs, maintenance exposure, and scheduling complexity. For a low-cost airline such as IndiGo, whose business model has long relied on operational efficiency and disciplined cost structures, these changes are particularly painful.

The challenge is compounded by the fact that IndiGo’s Dreamliners are not owned but damp-leased from Norse, with Norse continuing to provide cockpit crew and technical support. While this arrangement allowed IndiGo to rapidly enter long-haul markets, it has also resulted in a substantially higher operating cost base compared with traditional dry-leased or owned aircraft. Moreover, it also means that IndiGo must adhere to Indian regulatory requirements while the crew must simultaneously comply with European regulations.

For IndiGo, these disruptions create a unique challenge because the airline’s Dreamliner operation remains relatively small. Unlike large global carriers that can absorb irregularities across extensive widebody fleets, IndiGo has limited redundancy within its long-haul network. A single aircraft disruption can quickly affect multiple rotations and create operational ripple effects across the schedule.

One aircraft to return

IndiGo will return one of its six Dreamliners to Norse at the end of August. The airline began inducting these aircraft to enter the European market ahead of the arrival of its own A350s, expected in late 2027 or early 2028. But the opportunity it initially saw differs significantly from today’s reality, which is shaped by longer routes, increased fuel costs, and a weakening rupee — all of which are putting pressure on demand.

This retreat underscores the uncertainty and challenges that wide-body operations present to any carrier, particularly in the early stages. The burn per flight is significantly higher than in short-haul or narrow-body operations, which has a disproportionate impact on the balance sheet. The current geopolitical environment is precisely the kind of external shock that can rapidly turn profitable routes into marginal ones.

Will long-term strategy change?

IndiGo did not close any of its operational stations until the pandemic. Even later closure impacted only a handful of stations due to geopolitical reasons, such as the coup in Myanmar. The speed at which Copenhagen and Manchester stations have been closed will make it sweat more during planning stages for deployment of its A350s. The Dreamliners have 56 seats in the front cabin, which Norse sells as premium economy but IndiGo sells as its business class offering, IndiGoStretch. This experience is invaluable to take a decision on configuration of its A350s.

The Dreamliner operation was always intended to function as a bridge toward the future induction of A350s. It gave IndiGo an opportunity to gain wide-body operational experience, understand long-haul passenger behaviour, and establish an early presence in European markets before the arrival of its own fleet. While that objective has been partially achieved, geopolitics has led to scaling down of services.

The airline will continue to offer services to London’s Heathrow from Delhi and Mumbai along with to Amsterdam from Mumbai. While this would need three aircraft in normal circumstances, the current long routing means the airline needs more planes. Will the airline further reduce its damp-leased fleet? Slots at London’s Heathrow as well as Amsterdam are hard to come by and a short-term decision to plug losses will have to be balanced with a long-term view on slots.