What Can We Expect From Indian Airlines In 2024?

Now that we’ve entered 2024, what could we expect from Indian carriers and the industry in general? Will some of the momentum generated last year continue in the next 12 months? How will competition shape up with a stronger Air India and Air India Express, and will Go First ever fly again? Let’s take a look at what to expect from Indian airlines in 2024.

More International routes

If 2023 was anything to go by, this year we’re likely to see major carriers expand their international offerings, and some, like Akasa Air, enter the territory for the first time. IndiGo, which is the domestic market leader, already serves more than 30 international destinations, with some of its recent ones being Bali, Tbilisi, and Nairobi.

There are reports that IndiGo could place a widebody order in the future and is already contemplating putting premium cabins on some of its Airbus A321 aircraft, all aligning with its strategy of becoming a “global airline,” as stated by its CEO Pieter Ebers.

Air India is on a roll, too. Not too long ago, it couldn’t expand operations to the US because it didn’t have enough capacity. But with its grounded widebody planes fixed, several Boeing 777s coming in on lease, and more Airbus A350 joining its fleet in the coming months, one can expect several more international routes to North America and globally as well.

Vistara, which will still take delivery of a handful of aircraft from its previous orders, also plans to deploy them primarily for international expansion. In recent months, it has expanded its offering to Europe and launched flights to medium-haul routes such as Mauritius and Hong Kong.

Photo: Yatrik Sheth | Shutterstock

Akasa Air will also fly overseas for the first time in the next few months and is busy getting all the necessary regulatory approvals for such flights. As expected, the Middle East will be the first region it will target, with flights to Doha, Riyadh, Jeddah, and Kuwait in the pipeline. Akasa could also announce a big airplane order, with its CEO Vinay Dube saying it would be in three digits.

Competition between IndiGo and Tata Group airlines

A stronger Air India and Air India Express could stir things up and heat the competition with IndiGo, which for years has had no major challenge from any Indian airline. Already, we are seeing Air India consolidating its grasp on the trunk routes while Air India Express started flights on sectors such as Bengaluru-Mengaluru, and Bengaluru-Trivandrum. These were routes where IndiGo had a monopoly, but not anymore.

Photo: Anand Balaji | Shutterstock

Ayodhya is another example for which both low-cost airlines have been quick to announce flights and will fight it out to attract passengers. Of course, IndiGo doesn’t take any competition lying down, so it’ll be interesting to see how this rivalry plays out. In a recent report, CAPA India said,

“Competition between the two key airlines will be intense, across routes, regions and products, in a manner previously not seen in India. Importantly, both carriers have the balance sheets to support the anticipated growth and competitive intensity.”

What about SpiceJet?

SpiceJet’s last couple of years have been quite turbulent. Its finances have come under the microscope in recent times because it is almost constantly engaged in legal battles and negotiations with lenders and lessors over delayed payments.

Photo: Rawisyah Aditya | Shutterstock

But SpiceJet has also been adding capacity with several leased Boeing 737s and is looking to raise more than $250 million through issuance of equity and warrants. The airline is expected to use this money to lease more airplanes and increase fleet strength, which has dwindled in recent years, and possibly make a significant comeback.

More clarity on Go First and Jet Airways

And finally, 2024 should bring some clarity about the fates of Go First and Jet Airways. Go First has not had any flights since May 2023 but is looking for a lifeline. Similarly, Jet Airways, which is also looking to make a comeback, is dealing with its own set of problems between the winning bidder – the Jalan-Kalrock consortium and its lenders.

Photo: Skycolors | Shutterstock

While it’s looking increasingly difficult for both to return to business, we could get more clarity in 2024 about the direction these two airlines will take. How much longer could this saga go on anyway? We’ll have to wait and find out.

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