IndiGo, Air India need more than loyalty push to catch up

Loyalty plans are a substantial source of revenue for larger overseas carriers

- Daanish Anand

India's two largest airlines IndiGo and Air India, which dominate the near-duopoly in domestic skies, are ramping up their frequent flyer programmes to gradually build another potential revenue-generation source in a cut-throat market.

Budget carrier IndiGo, operated by InterGlobe Aviation Ltd, in October reached the milestone of one million loyalty flyers under IndiGo BluChip plan. Tata Group-owned Air India Group's loyalty membership, Maharaja Club, has surged threefold to about 10 million since it completed merger with Vistara in November last year.

"With flying population of India rising, everyone is a potential customer," said Ajay Awtaney, founder of Live From A Lounge, which tracks the aviation sector and frequent flyer programmes (FFPs). "There is a huge opportunity in the market, with a potential of 30-40 million members in the next three to five years."