IndiGo will begin international flights from Sept. 1

IndiGo will begin international flights from Sept. 1, starting with Dubai, Singapore and Bangkok at initial return fares of 9,999 rupees ($223), intensifying competition with other Indian and overseas airlines on these busy and lucrative short-haul routes.Indigo also plans to start flights to Kathmandu and Muscat soon, Aditya Ghosh, president of India's largest budget airline by market share, told a news conference.There is a huge potential for more and more Indian carriers to fly overseas,Mr. Ghosh said.I don't see why people won't fly with us if we keep our costs low and fares low.Mr. Ghosh said international operations are expected to generate higher yields for IndiGo than local ones, while also saving on fuel expenses as the cruise time is higher, which leads to higher efficiency.IndiGo was founded by Rahul Bhatia, managing director of travel conglomerate InterGlobe Enterprises, and Rakesh Gangwal, a former president of U.S. Airways. IndiGo's nearest rival SpiceJet Ltd., India's second-biggest budget carrier by market share began overseas flights last October. Full-service carriers Jet Airways (India) Ltd., Kingfisher Airlines Ltd. and Air India Ltd. also operate international flights.

Under government rules, an Indian carrier is eligible to start overseas flights only after completing five years of domestic operations and acquiring a fleet of 20 planes.IndiGo, which has 39 Airbus planes, will complete five years in August. The airline currently operates 259 daily flights to 26 destinations across India.IndiGo in January placed a record $15.6 billion order to buy 180 Airbus aircraft, including 150 A320neo planes, an upgraded variant of the popular A320 plane.Airbus said at the time that the deal was the commercial aviation industry's largest-ever jet order in terms of number of planes and one of the biggest by value. The January order is a follow-up to the 100 Airbus A320 planes that IndiGo ordered in 2005.

Mr. Ghosh said daily flights from New Delhi to Dubai will start on Sept. 1, followed by Bangkok from Sept. 8 and Singapore on Sept. 15. Daily flights originating from Mumbai to Bangkok and Dubai will commence on Oct. 2.We will target high-density traffic international routes,he said, adding that the carrier will use a total of eight to nine planes for its international operations by March.A significant part of our capacity will remain in the local market,Mr. Ghosh said.He said IndiGo will complete taking delivery of the 100 Airbus planes from the 2005 order by 2015. The airline plans to take delivery of the additional 180 Airbus planes from the January order between 2016 and 2023, he added.