Why IndiGo and Air India are racing to lock in loyal customers

InterGlobe Aviation-run IndiGo, which launched its BluChip programme in September 2024, 107million passengers in calendar year 2025, data from India’s aviation regulator show. This implies that about 1 in 10 passengers who flew IndiGo are members of its loyalty program.

Air India, which relaunched its loyalty programme in November 2024, has 10 million members in its Maharaj Club, up from two million in January 2022, when the Tata Group bought the airline. Tata Sons, the holding company of the privately held aviation business, merged Vistara with Air India, both full service carriers, in November 2024, giving a boost to its frequent-flyer scheme.

A single loyalty programme being implemented for Air India and its budget carrier, Air India Express, is expected to be complete by the end of this calendar year, according to an executive at Air India and Air India Express.

Mint independently could not ascertain the number of Air India Express frequent flyers.

“Trials are currently underway (about the loyalty programme of Air India and Air India Express) and a broader rollout is expected in the latter part of 2026. It will be a phase-wise merger,” said a second executive. Both executives didn’t want to be identifed.

IndiGo, Air India, and Air India Express did not offer a comment.

Points sharing across AIX, AI

In the first phase of the loyality programme integration, Air India customers will be able to redeem Maharaja Club points on Air India Express flights. In the second phase, Air India Express customers will be able to use NeuPass points on Air India’s network, significantly expanding redemption options. NeuPass is a Tata Group rewards programme that aggregates points on spending on its brands.

The integration is critical as a growing share of domestic and short-haul routes are being shifted from Air India to Air India Express, as part of Tata’s strategy to position Air India as a premium, three-class carrier focused on major metro markets.

At present, Air India Express flies to more destinations within India than the full-scale carrier. This means the majority of passengers cannot earn points on their trips since Maharaja Club points are earned only on Air India and Star Alliance flights, not on Air India Express flights.

“The Air India Express integration was a must-do item. The reason is that a chunk of the network is being taken away from Air India and handed over to Air India Express to operate the flights. Air India plans to serve premium markets (Mumbai, Delhi, and Bengaluru), where its three-class airline configuration can be accommodated,” said Ajay Awtaney, founder of LiveFromALounge.com, an Indian loyalty program analytics website.

Air India is also positioning loyalty as part of its broader premium transformation, expanding its Maharaja Lounge concept into more “luxe” experiences with redesigned spaces, improved food offerings, and partnerships with premium brands. It is planning new lounges in international hubs such as San Francisco and New York.

BluChip @ 8% of spends

IndiGo, meanwhile, is taking a different approach. Its BluChip programme is a simple revenue-based model that offers eight points for every 100 spent, that can be redeemed against free tickets, seat selection, extra baggage, and priority services. A key differentiator is that points do not expire for active members.

The airline introduced a “Stretch” product, and allows customers to upgrade to these premium seats using a mix of cash and points. The business-class product, launched in November 2024, is currently available on eight domestic and nine international routes with plans for expansion in the coming months.

“We are expanding Stretch to a total of 65 aircraft, enabling wider network options for business and premium customers,” said IndiGo chief executive Pieter Elbers during the airline’s January 2026 earnings call.

Long haul flights to Athens, introduced a few weeks back, are seeing introduction of these premium seats too.

IndiGo has hired loyalty and payments expert Nik Laming as a consultant and is exploring partnerships that allow customers to earn BluChip points beyond flights, including through banks, fintech firms and lifestyle brands such as Nobero.

Loyalty takes centrestage

The global market for travel loyalty programmes was valued at $29.1 billion in 2024 and is projected to reach $52.6 billion by 2030, growing at a CAGR of 10.4%, according to a report by Market Glass Inc., a global market insights company, published in January 2026.

Industry executives say loyalty programmes are becoming critical as airlines face pressure on ticket prices and rising costs, even as passenger growth slows. India’s domestic air traffic growth fell to 3.5% in 2025 from 6% in the previous year.

“For Air India, scale remains the biggest advantage once its group-wide loyalty programme is fully integrated. For IndiGo, the challenge will be sustaining engagement without a premium long-haul network,” said Mark D. Martin, founder of aviation consultancy Martin Consulting.

Still, IndiGo’s rapid progress reflects a deeper change, he said.

“Five years ago, loyalty wasn’t even part of IndiGo’s strategy. Today, it’s central to how airlines think about long-term growth and repositions itself as a fit for purpose airline,” said Martin.

To put numbers in context, Air India Group flew 45 million passengers in 2025 with a 27% marrket share; less than half of market leader IndiGo, that carried 107 million travellers (64% share of market), shows December data from regulator Directorate General of Civil Aviation.

  • Aniket Pujari

    Aniket Pujari

    Aniket Pujari, a graduate in Financial Markets, is the founder of Minute To Know News, a digital platform providing daily news updates on cryptocurrencies, finance, and economics. With a passion for finance and technology, Aniket has been exploring the world of cryptocurrencies since 2015, building a deep understanding of these rapidly evolving industries.

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