
Agents to gain India booking boost as Virgin Atlantic signs deal with IndiGo
Writer
Virgin Atlantic announced the new partnership with the fast-growing low-cost carrier this weekend in Delhi, where it also marked 25 years of its own service from Heathrow to the city.
The deal with IndiGo includes Virgin's fellow SkyTeam members Air France-KLM and Delta Air Lines, with the airlines saying they would 'build an industry-leading partnership to offer travellers broader access, smoother journeys, and a more consistent experience, linking dozens of cities in the US, Canada, Europe and India' as travel to the country continues to flourish.
In 2024, India experienced a 1.4% growth in international arrivals, reaching 9,657,003, with the UK representing more than 10% of that, placing the country as the third largest source market.
'In real terms, this IndiGo partnership means more passenger capacity and potentially more destinations in the country,' said Virgin Atlantic's chief commercial officer Juha Jarvinen. 'We currently have access to 36 destinations here, and from 1 July we'll be adding the IndiGo codeshare to our flights from Manchester to the US. Having a foothold here is immensely important to us, and Virgin Atlantic is the fifth largest airline to fly between Europe and India.'
'In real terms, this means more passenger capacity and potentially more destinations in the country'
'This is only the beginning; we firmly believe that India is the right place for Virgin Atlantic and our partners, especially with regards to how quickly India is growing,' he said.
The airline currently offers five daily flights from the UK, translating to around a million seats annually. 'India today is our third largest passenger market, and second biggest in terms of cargo so it is clearly a massive opportunity for us,' Jarvinen added. 'But at the same time, we need to make sure we localise ourselves; we will customise our offering on board and on the ground. With those five daily flights – two daily to Delhi, two daily to Mumbai and one daily to Bengaluru – that lays the foundation.'
The London-Delhi route is seen as eminently successful, having doubled operation to two daily flights in 2023, with load factors hovering around 90% in all cabins. The airline uses a mixture of aircraft on the route, the A350-1000 being the biggest, with capacity for nearly 400 passengers.
While Upper Class remains popular with business travellers, Jarvinen added the increasing development of the Indian economy – recently announced as seeing Q4 GDP growth of 7.4% – and the growing wealth of the population had meant a corresponding rise in premium leisure and VFR traffic.
Speaking to TTG at The Oberoi in New Delhi, Jarvinen also revealed that while the airline is happy with the three cities it currently serves and the frequency of direct flights it offers to India, Virgin is always exploring new options. 'With the new partnership with IndiGo, we have opportunities to grow together,' he said.
Trade focus
Jarvinen said the growth of the SkyTeam partnership with IndiGo has positive implications for UK agents selling into India.
'We are very committed to omnichannel distributions. The travel trade is very important to us today, and will still be in the future, so whichever products we sell, they will always be available through the trade and we are also working with NDC [New Distribution Capability] solutions. These will definitely be through a carrot rather than stick approach – we will give a better offering through NDC, including ancillary services and dynamic pricing,' he added.
Since launching in 2005, IndiGo has become one of the fastest growing airlines in the world, with 400 aircraft transporting 118 million passengers last year alone, and further moves planned to grow international routes.
Jarvinen said that in terms of client perception, IndiGo's original status as a low-cost carrier was unlikely to deter Virgin Atlantic customers perhaps more inclined towards a full-service airline.
'IndiGo today is at the very least a hybrid, meaning they have many of the principles of an LCC, but now they already have at least two class products on their domestic flights. They call their business cabin IndiGoStretch, which I believe is actually a better business product than many European airlines have, with a bigger seat,' he said.
'They will then obviously evolve that concept to their long-haul flights when they come, and we are of course eager to see their own A350s coming in 2027, so we'll see what kind of product they offer then. But they are definitely moving much more into a mainstream service.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
17 minutes ago
- Reuters
India PM Modi faces opposition fury after Trump's 25% tariff threat
NEW DELHI, July 31 (Reuters) - Indian opposition parties criticised the government on Thursday, describing U.S. President Donald Trump's threat of a 25% tariff as a diplomatic failure for New Delhi, while the rupee currency tumbled and equity indexes slid in response to the news. The 25% rate would single out India more harshly than other major trading partners, and threatens to unravel months of talks, undermining one of Washington's strategic partners in the region, viewed as a counterbalance to China. Trump said the tariff on goods imports from India would start from Friday, in addition to an unspecified penalty for Russian dealings and involvement in the BRICS grouping of nations, but added later that trade talks continued. In response, the government of Prime Minister Narendra Modi said it was studying the implications of Trump's remarks and was dedicated to securing a fair trade deal. "This development reflects a broader collapse of foreign policy under the Modi government," a lawmaker of the main opposition Congress said in a notice asking for a discussion of the matter in the lower house. The debate would focus on the "government's economic and diplomatic failure in preventing the imposition of 25% U.S. tariffs plus penalties on Indian exports," it added. Commerce Minister Piyush Goyal is expected to brief the lower house later on Thursday, television news channels said. Economists warned the steep tariff could hurt India's manufacturing ambitions and trim up to 40 basis points from economic growth in the financial year to March 2026. India's benchmark equity indices, the Nifty 50 (.NSEI), opens new tab and BSE Sensex (.BSESN), opens new tab, fell about 0.6% each, while the rupee declined to 87.74, its lowest in more than five months, before paring losses. India has received a "raw deal", said Priyanka Kishore, an economist at Asia Decoded. "While further trade talks may bring the tariff rate down, it appears unlikely that India will secure a significantly better outcome than its eastern neighbours," she added. That would raise questions about India's relative appeal as a China plus one destination, she said, referring to a strategy of diversifying supply chains through manufacturing outside China to reduce geopolitical and operational risks. Trade talks continued, Trump said on social media, however, as nations face a Friday deadline to strike deals on reciprocal tariffs or have a U.S. tariff slapped on their exports. The U.S. levy on India exceeds those achieved by some other nations in deals with the Trump administration. For example, the tariff on Vietnam is set at 20% and on Indonesia at 19%, with levies of 15% on Japanese and European Union exports. On Wednesday, Trump said Washington had reached a trade deal with India's arch-rival Pakistan that Islamabad said would lead to lower tariffs on its exports, but neither side have yet revealed the agreed rate. Since India's short but deadly conflict with Pakistan in May, New Delhi has been unhappy about Trump's closeness with Islamabad and has protested, casting a shadow over trade talks. Despite former public displays of bonhomie between Trump and Modi, India has taken a slightly harder stance against the United States in recent weeks. Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10, but India disputes his claim that it resulted from his intervention and trade threats. "The country is now bearing the cost of Narendra Modi's friendship," Congress said. The United States, the world's largest economy, now has a trade deficit of $45.7 billion with India, the fifth largest. Russia remained India's top oil supplier during the first six months of 2025, accounting for 35% of overall supplies. "I don't care what India does with Russia," Trump said in a Truth Social post on Thursday, adding, "They can take their dead economies down together, for all I care."


Reuters
17 minutes ago
- Reuters
India's RBI unlikely to re-introduce fixed-rate liquidity operations, sources say
MUMBAI, July 31 (Reuters) - India's central bank is unlikely to re-introduce the policy of lending money daily to banks at a fixed rate, despite increased clamour for it from market participants, three sources said on Thursday. The policy, called fixed rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months. Banks had asked for the quantum of infusion to be fixed on a percentage of their deposit base. "The RBI is clearly not in favour of hand-holding banks and wants to keep any liquidity operation on a variable rate," one source said. The sources requested anonymity as they are not authorised to speak to media. The RBI did not reply to a Reuters email seeking comment. In variable repo or reverse repo, through which RBI injects or absorbs cash, banks have to undergo a bidding process based on their funding needs. Last week, overnight inter-bank call money rates jumped above marginal standing facility rate, which is the policy corridor ceiling, after banks parked funds with RBI under reverse repos. They then faced a shortage after tax outflows. "On days like that, it helps if there is a repo window available," the second source said. Lenders also asked for relaxation of daily maintenance of the cash reserve ratio, which is the percentage of deposits that they need to park with the RBI. The RBI is also reviewing the liquidity management framework. The revised framework could be released alongside the monetary policy decision on August 6, some market participants said. The sources said that the RBI may shift to a seven-day operation as the main liquidity tool, instead of the current 14-day auctions adopted in 2020. The bank has skipped conducting the 14-day operation since the last six fortnights.


Reuters
17 minutes ago
- Reuters
Lufthansa, Air France-KLM defy trade war worries with Q2 growth
LONDON/CHICAGO/GDANSK, July 31 (Reuters) - European airlines Lufthansa ( opens new tab and Air France-KLM ( opens new tab reported higher second-quarter profits on Thursday, defying worries that economic uncertainty and U.S. tariffs might hit transatlantic travel. Transatlantic connections are among the most lucrative for airlines, having bolstered British Airways-owner IAG (ICAG.L), opens new tab in recent years as European competitors struggled. A number of U.S. airlines, including Delta (DAL.N), opens new tab, abandoned their full-year financial forecasts this spring on the back of weakening travel demand after U.S. President Donald Trump's tariffs dented business and consumer confidence. European airlines, however, are bucking the trend. Lufthansa said on Thursday that demand in the United States remained strong despite a weaker U.S. dollar, while Air France-KLM highlighted the strength of its premium offering. Lufthansa reported a 27% year-on-year increase in second-quarter operating profit to 871 million euros ($995 million), beating analysts' average forecast of 805 million euros. "Although the second quarter was again marked by geopolitical crises and economic uncertainties, we are today confirming our positive outlook for the full year," Chief Executive Carsten Spohr said in a statement. U.S. airlines have reported an improvement in bookings since late June after a sharp drop in March and April when Trump unleashed his trade war. While demand has stabilised, airline executives say it is below estimates at the start of the year. Moreover, spending by price-sensitive travellers remains depressed amid lingering uncertainty about the U.S. economy and rising living costs. European travellers are known for being more price-sensitive than Americans, often having less spending power. But wealthy Americans are flocking to Europe this summer. While domestic U.S. travel has struggled, hitting budget airlines, resilient demand for premium and long-haul international travel has helped Delta and United Airlines (UAL.O), opens new tab perform better. Lufthansa's profit beat was helped by its investment in Italy's ITA Airways, which contributed a "surprisingly large" profit to the group's bottom line, Bernstein analyst Alex Irving said in a note to clients. Still, Irving said Air France-KLM had "meaningfully outperformed" Lufthansa on North Atlantic sales. At 0750 GMT, Lufthansa shares were down 1%, while Air France-KLM's were up 2.7%. Lufthansa has struggled with rising labour costs as well as a slower return in traffic from Asia since the pandemic, issuing two profit warnings last year. The move to focus on Italy was a cost-saving measure - the Rome hub is far cheaper to maintain than German bases - that is starting to pay off, the company said. Air France-KLM's second-quarter operating profit rose to 736 million euros from 513 million euros a year earlier, in line with analyst expectations. While Air France has benefited from strong demand to Paris and capitalised on its luxury French appeal, KLM has struggled with ongoing challenges at Schiphol airport near Amsterdam. ($1 = 0.8751 euros)