Is Air India and IndiGo Vision to Become Global Carriers on Track with New Orders? | Exclusive

MUMBAI- Both Air India (AI) and IndiGo (6E) have ordered new widebody jets that can fly anywhere in the world.

Will ordering widebody and long-haul narrowbody planes and announcing new international destinations be sufficient to become a global carrier? Or there is something else? Before that, let’s analyze what strategy both airlines are using.

Photo: avgeekwithlens/ Harsh Tekriwal

Air India and IndiGo Strategy

In the competitive world of aviation, Air India and IndiGo are two major players with the vision to become global carriers. While their focus and strategies may have differed in the past, recent developments indicate a shift towards aligning their goals and ambitions.

The Air India Group is a conglomerate formed by four airlines, each serving a unique purpose in the market. These include Vistara (UK) and Air India as full-service carriers, Air India Express (IX) as a low-cost carrier, and AIX Connect (I5) as an ultra-low-cost carrier.

With the Merger almost completed, after 2025, we will only left with Air India and Air India Express.

While each arm of the group may have its own priorities, they work together to complement each other’s strengths and capabilities to give strong competition to IndiGo.

Photo: Robin HARDY

Domestic Vs International Capacity

On the domestic front, IndiGo has been the clear leader in terms of the number of flights operated and available seat kilometers (ASK) deployed.

However, when it comes to international operations, the Air India Group takes the lead with a higher number of flights and ASK deployed. This can be attributed to the group’s utilization of wide-body aircraft for longer international routes, giving them a competitive advantage over IndiGo.

Vasuki Prasad, analyst and Sales Director of Embraer for South Asia & Indonesia, shared insights on Air India’s and IndiGo’s focus.

Photo: avgeekwithlens/ Harsh Tekriwal

The domestic-international split regarding ASK capacity also highlights the difference in focus between Air India and IndiGo.

While Air India focuses more on international routes, IndiGo has traditionally been more focused on domestic operations.

However, with IndiGo’s recent announcement of expanding its fleet to include long-haul flights, the lines between the two airlines’ strategies are beginning to blur.

Photo: Vasuki Prasad

As IndiGo sets its sights on long-haul routes, it is venturing into territory traditionally dominated by Air India. This strategy shift could disrupt the market dynamics and pave the way for both airlines to expand their global footprint.

By exploring new opportunities and diversifying their offerings, both Air India and IndiGo are positioning themselves for growth in the competitive aviation industry.

Now let us time travel to 2030 and see where both the Indian airlines are standing and how they are competing with foreign carriers on the global stage.

Photo: Robin HARDY

Vision 2030

Air India is backed by Best in World Singapore Airlines (SQ), while IndiGo has partnered with World-class Qatar Airways (QR).

David Studden, the Senior Manager of Business Development & Marketing at Etihad Aviation Training Gulf Centre for Aviation Studies (GCAS), has shared a hypothetical situation that might be possible.

These strategic partnerships have enhanced passengers’ onboard experience and provided access to world-class hubs.

Photo: avgeekwithlens/ Harsh Tekriwal

Established Hubs

Air India has focused on expanding its Asian presence, with Singapore Changi as a “sister” hub. On the other hand, IndiGo has set its sights on the West, making Doha its “sister” hub, with a strong focus on European and US markets.

The Indian widebody fleets are not only busy on international routes but also cater to the growing demand for domestic travel. IndiGo has moved beyond being a low-cost carrier to offering premium services. From cocoon class to business class, premium economy, and economy products, passengers can enjoy a range of options onboard.

Additionally, both airlines have introduced co-working spaces on board, known as WORK class, catering to the needs of modern travelers, especially young IT professionals.

Delhi, Mumbai, Bengaluru, and Hyderabad have become key hubs, much like their Middle Eastern counterparts in the early 21st century. Connecting traffic now accounts for around 40% of total business, highlighting the importance of seamless travel experiences for passengers. This shift has transformed how travelers move between destinations, making India a crucial hub for global connectivity.

Photo: ANI

Sustainability at its Core

Sustainability has taken center stage in the aviation industry, with airlines implementing eco-friendly initiatives. Passengers are encouraged to collect their own trash in special bags or opt for a Trash fee, where the airline manages waste disposal.

Adopt-a-tree schemes and other green initiatives are gaining traction, showcasing the industry’s commitment to environmental stewardship.

Wedding charters have become a lucrative business for Indian airlines, with destination weddings gaining popularity worldwide. Beach destinations are a couple’s favorite, with Australia and New Zealand emerging as top choices. Northern Light weddings in Europe and Alaska are also in vogue, reflecting a growing trend of unique and memorable ceremonies.

Photo: Pieter Elbers

Long Way to Go…

Alright, let’s come back to the present. Both Air India and IndiGo have a long way to go before they can become truly global carriers like Middle-east and Southeast Asian carriers.

Air India and IndiGo will have to figure out a way that suits their model of operations rather than copying the strategy implemented by other international carriers.

They will have to design services, offerings, and destinations suitable for Indian travelers and those who want transit through India.

Strong management leaders back both carriers, and I think they are set to fulfill their and India’s vision of establishing themselves as global carriers.

Photo: Photo: Siddh Dhuri | MumbaiPlanes

In short, Air India and IndiGo are set to create a duopoly not just in the domestic market but also on the International stage. It will be interesting to see how other carriers like SpiceJet (SG) and Akasa Air (QP) find their way into this duopoly market.

Will the emerging regional carriers play any role in making India a truly global hub for the world? Only time will tell.

We thank Vasuki Prasad and David Studden for sharing some key insights. Make sure to share this post with your friends and colleagues, and let us know your feedback on social media pages.

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