Why doesn't IndiGo airlines have a loyalty/frequent flyer program like other airlines?

Until recently, IndiGo, India's largest low-cost carrier, did not have a traditional frequent flyer program like many other airlines. Here are some reasons why:

Historical Absence

Historically, IndiGo did not offer a frequent flyer program, unlike some of its competitors. This was partly due to its low-cost business model, which focuses on minimizing expenses to offer the lowest possible fares. Loyalty programs can be costly to administer, involving additional staff, IT systems, and the management of complex partnerships23.

Previous Rewards Scheme

IndiGo had a rewards scheme called 6E Rewards, but it was not a full-fledged frequent flyer program. Instead, it was more of a rewards scheme where members could accrue rewards by using a co-branded card on IndiGo and other merchants, and these rewards could be redeemed for specific benefits1.

Market and Business Model

IndiGo's business model and the price-sensitive nature of the Indian market were also factors. The airline may not have seen loyalty programs as a significant driving force in retaining customers, especially when price is a major consideration3.

New Development

However, this has changed with the recent launch of IndiGo's BluChip loyalty program. Announced in August 2024, BluChip is designed to reward loyal customers by allowing them to collect BluChips based on their flight spending, which can be redeemed for flights and other services without expiration dates14. This move indicates a shift in IndiGo's strategy to compete more directly with other airlines, including the flag carrier Air India.