What do Tata’s moves with Air India mean for Indian aviation?
In January this year, the Tatas took possession of Air India, low-cost operator Air India Express and AI SATS, the ground-handling subsidiary. The aviation sector is moving towards a market in which Air India and IndiGo would be the dominant players.
The aviation advisory firm CAPA India said that in due course the two will control 75-80% of the market. In terms of international market for flights to and from India, the duo’s combined share is expected to go up from 37.8% to above 50%. In other words, servicing of international markets from India, which has been historically dominated by foreign carriers, will see dominance by Indian-owned airlines.
From a profitability standpoint, the pandemic has been unforgiving in terms of bringing travel and hospitality industries to a standstill. Now, with much higher fuel costs and foreign exchange losses, it’s a double whammy for most airlines.
Where do airlines in India stand in terms of competition? What does the future look like?
Script and production: K. Bharat Kumar
Data collation: Jagriti Chandra
Production: Shibu Narayan
Videography: Johan Sathyadas
