IndiGo today announced Athens as the inaugural destination to be served by its first Airbus A321XLR aircraft. The airline is all set to bring home India’s first A321XLR by the end of 2025 and begin six weekly direct flights to Athens by early January 2026, subject to regulatory approval. This milestone will make IndiGo the only Indian carrier to offer direct flights between India and Greece. On receipt of the appropriate approvals, IndiGo intends to connect Athens to both Delhi and Mumbai, with operations of three frequencies per week on both routes.

These flights to Athens will also offer convenient access to the exotic Greek islands, including Santorini, Mykonos, and Crete, besides other regional European cities. This new connection promises to be a great enabler of the growing leisure travel as well as MICE and wedding tourism between the two countries, while also further strengthening IndiGo’s footprint in Europe.

Pieter Elbers, Chief Executive Officer, IndiGo, said, “Athens as the inaugural destination for IndiGo’s and India’s first Airbus A321XLR is a symbolic milestone of India’s aviation ascent. IndiGo is proud to be the only Indian airline, currently, to announce direct flights between India and Greece – two ancient civilizations with a history of long-standing relationship, now deepened by modern-day bilateral and economic ties. This new aviation corridor is a strategic step in IndiGo’s international expansion and aligns perfectly with India’s growing economy and tourism industry. With flight schedules ensuring convenience for travellers, we are confident that this route will further encourage demand for business and leisure travel alike. With this, we also look to connect to more points in Greece, strengthening the connectivity between the two countries.”

The A321XLR is a next-generation narrow-body aircraft designed for longer ranges, allowing IndiGo to expand deeper into Europe while maintaining the cost-efficiency of a single-aisle fleet. With a range of up to 8,700 km, the XLR opens access to destinations previously beyond reach of narrow-body operations, enabling non-stop flights from India to Southern Europe with greater efficiency. It will feature Economy Class and also IndiGoStretch that offers more comfort, enhanced legroom, in-flight entertainment, and an elevated cabin experience.

The launch of Athens as IndiGo’s first XLR destination comes at a time when the India-Europe aviation market is growing, driven by both business and leisure demand. Greece, with its growing role as a tourism and trade hub, offers a strong complement to India’s expanding outbound market. As IndiGo sets its sights on expansion in Greece, it will also work with partners to make Greece as one of the top preferences for Indians. At the same time, India has become one of the fastest-growing source markets for Europe, and direct services to Athens will further enhance people-to-people and economic exchanges between the two nations.

In a pivotal move, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has approved structural reforms aimed at simplifying the tax regime and infusing new vigour into several key sectors — none more so than tourism and hospitality.

The reduction of GST on mid and upper-mid segment hotel accommodations from 12% to 5% is a game-changer. This long-awaited reform is expected to spur domestic travel, boost occupancy, and make Indian destinations more competitive against other Asian tourism hubs. At a time when international destinations are aggressively courting Indian travellers, this change is both timely and strategic.

By easing the tax burden, domestic tourism now has the room it needs to grow. Lower travel costs are expected to drive greater footfall across a wider range of destinations — not just popular hotspots, but emerging and developing locales as well — injecting fresh energy into local economies. Rising demand is likely to spur infrastructure investment and lead to gig hiring across hospitality, transport, and allied services. If the economic logic holds, the government may see tax collections remain stable or even rise, as higher volumes offset the impact of rate cuts.

An analysis from a reputed credit rating agency highlighted the problem starkly. In a five-night stay comparison at a four-star hotel between Mumbai–Goa and Mumbai–Bangkok, hotel costs in Goa accounted for 80% of total spend, compared to just 60% in Bangkok — despite near-identical overall trip costs. In essence, cheaper domestic flights were being offset by disproportionately expensive hotel stays. This tax correction directly addresses that imbalance, one the industry has flagged for years.

India’s diverse destinations — Ladakh, Andaman, Kerala, Rajasthan — can rival global hotspots. The reform gives them a much-needed boost. However, removing Input Tax Credit (ITC) for properties below INR 7,500 may hinder quality offerings in the budget segment.
On a positive note, retaining the 5% GST on economy class fares is a welcome move that keeps air travel within reach for many. While the hike to 18% for premium fares has drawn criticism, it’s worth noting that change often comes in phases.

It is now time to seize this momentum — by launching an Incredible India 2.0 campaign that positions tourism as a cornerstone of India’s job and growth story, to realise the sector’s full potential.