Air India Express Challenges IndiGo’s Dominance: A New Era in Indian Aviation
In the wake of Tata Group’s takeover of Air India in January 2022, the airline has been on a trajectory of notable improvement. It has placed substantial orders, launched new routes, and breathed life into grounded planes. Additionally, Air India Express, the low-cost subsidiary of Air India, has started operating Boeing MAX 8 aircraft on routes once dominated by IndiGo, the country’s largest airline. This includes domestic sectors and international flights to Dammam from Hyderabad and Mumbai.
Challenging Monopolies and Creating New Ones
Air India Express’s growth strategy appears to hinge on challenging existing monopolies and perhaps establishing new ones. The airline has managed to rapidly expand despite the global supply chain disruptions by taking advantage of ‘white tails’ – unsold aircraft initially intended for other carriers, particularly Chinese ones.
The Dual-Class Configuration Challenge
However, these aircrafts’ dual-class configuration, which strays from the typical low-cost carrier (LCC) model, could result in higher operational costs in the long term.
IndiGo’s Counter-Strategy
Meanwhile, IndiGo is grappling with its own problems, with a significant portion of its fleet grounded due to engine issues. To maintain operations, the airline may need to resort to wet and dry leasing. The rivalry between IndiGo and Air India Express is heating up. While Air India Express is expanding at a rapid pace, IndiGo’s response and strategy in the face of this escalating competition is yet to be determined.
Surat International Airport’s New Terminal
In a related development, Surat International Airport in Gujarat started domestic flight operations from its newly inaugurated terminal, constructed at a cost of ₹353 crore. The opening flights to Delhi and Hyderabad were operated by Indigo, marking an important milestone in the airport’s operational history. The new terminal is designed to mirror the local culture and heritage of Surat city and is equipped with various sustainability features, including insulated roofing, energy-saving canopies, and a solar power plant.
The battle for air supremacy in Indian skies continues to intensify, with Air India Express challenging IndiGo’s dominance. As the tussle between these two airlines unfolds, the Indian aviation industry is bound to witness some groundbreaking changes.