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IndiGo, India’s dominant airline renowned for its fleet and market hold, recently made waves by axing its fuel charge effective January 4, 2024. However, the airline’s decision swiftly pivoted towards a reshuffle in its ancillary charges, notably raising the stakes for seat selection. This strategic move, promptly reflecting on their booking engine last week and updated on their website today, has jolted some seat prices to a significant ₹2000.
The airline’s distinct categorization of seats as “XL” boasts perks like extra legroom or expedited deplaning, particularly for the first-row seats. Despite this, there’s no upgrade in service for these premium seats. Amongst the 180 or 186 seats on their A320/A320neo aircraft, a substantial portion—18 seats—are marketed as XL seats. Intriguingly, not all XL seats are pegged at the ₹2000 mark; rates oscillate between ₹1400 to ₹2000.
Previously, seat prices meandered from ₹150 to ₹1500, but this overhaul has widened the spectrum to ₹150 to ₹2000, a 33% hike at the upper echelon. Free seats still linger, predominantly nestled in the middle towards the rear of the aircraft. The alterations aren’t uniform—instances of price reductions counterbalance the increments. Curiously, seat selection for flights operated by the ATR 72-600, comprising over 40 units within the airline’s fleet, remains untouched.
The rejig extends to specific rows on the Airbus fleet. For instance, seat selection charges for rows 2 and 3 have ebbed from ₹450 to ₹400. Conversely, on the A320s, encompassing the lion’s share of their fleet, charges for rows 11 and 14 to 20 have catapulted from ₹250 to ₹400, even for middle seats that previously fetched ₹150.
IndiGo’s reportage of a robust ₹1551 crores in ancillary revenue in the last quarter encompasses a gamut of offerings—ranging from seat and meal selections to various combinatory choices available for purchase. This sizable ancillary revenue spotlighting seat selections underscores the airline’s astute monetization strategy amidst a dynamic and competitive aviation landscape.
IndiGo’s recalibration, juggling fuel charges for an ancillary revenue surge, hints at a tactical maneuver to augment revenue streams, albeit with a discernible shift in seat pricing paradigms. The implications of these alterations could resonate with both frequent flyers and budget-conscious travelers, altering the landscape of seat selection dynamics in the airline industry.
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