IndiGo Offering Affordable Tickets But Cost Needs To Be Factored, Says CEO Pieter Elbers

India's average airfare levels have been competitive and are low compared to the global market, IndiGo Chief Executive Officer Pieter Elbers said.

For the budget carrier, maintaining its cost leadership is the most important business factor. "Ticket prices should be a reflection of cost levels. IndiGo is expanding its foundation value of offering affordable rates," Elbers told NDTV Profit.

Airfares have become a topic of heated discussion in the country as passenger numbers soar and complaints on social media draw government attention. The Directorate General of Civil Aviation has received industry pushback on its plans to look into granular data on ticket prices.

Amid "ambitious" expansion into international routes, Elbers said IndiGo will offer business class service only on routes with promising demand.

He cited the example of Thailand, a popular tourist destination, where the airline is not offering business class service to Krabi, but to Bangkok which is doing very well.

The airline aims to increase its presence in Southeast Asia, Central Asia, and Europe, where deep-pocketed foreign rivals ferry more Indians than domestic carriers.

A rise in international sales also provides a natural hedge against foreign exchange turbulance. "We did some forex hedging last year, but hedging cannot be looked at on a sequential basis. We expect a different impact of forex in the fourth quarter compared to the third," Elbers said.