A carrier-by-carrier guide to which airlines are vying for share in the Indian airline market.
A strong rebound in passenger traffic as Covid restrictions were eased and ambitious plans from airlines sees player old and new jockying for position in the Indian aviation market.
Domestic passenger levels climbed 47% last year as data from India’s Directorate-General of Civil Aviation (DGCA) shows Indian carriers flew more than 123 million people last year.
While low-cost carrier IndiGo remains the country’s biggest operator, a reinvigorated Air India – now in the private hands of Tata Group – has set out its growth ambitions with a major aircraft order.
Notably the latter will see consolidation, under which Tata’s joint venture SIA Group will be merged into an enlarged Air India – in which SIA will hold a 25% stake. It has also seen a tie-up between regional carrier Air India Express and low-cost carrier AirAsia India – the airline launched by Tata with AirAsia in 2014. The deal brings to an end AirAsia’s investment in an Indian carrier.
Start-up carrier Akasa Air, which announced its ambitions with a major Boeing Max order, launched operations in 2022, while Jet Airways continues its efforts to restart operations after its collapse in 2019.
INDIGO
The low-cost operator holds the lion’s share of the Indian market, with a fleet of close to 300 aircraft and an extensive domestic and growing international network. IndiGo, which began operations in 2006, was profitable in the three months ended 31 December 2022, helped by record revenue amid what it called a “strong recovery” from Covid-19 with significant improvements in passenger demand and forward bookings. The airline also has a large orderbook of over 500 aircraft for Airbus A320neo family aircraft, including the long-haul A321XLR, and most recently entered the widebody market with a wet-lease of a Boeing 777-300ER from partner Turkish Airlines.
Chief executive: Pieter Elbers, who joined from KLM and took over in September 2022.
Operating hub: The airline’s primary hub is in Delhi, though it has secondary hubs in Mumbai and Kolkata.
Q1 market share: 55.7%. This is one of the highest market share IndiGo has seen in recent years.
AIR INDIA
The national carrier has seen its fortunes turn for the better following its well-publicised privatisation under new owners Tata Group. It has rolled out an ambitious business transformation plan – known as Vihaan.AI – which includes a headline order for over 400 new aircraft from Airbus and Boeing. Plans are also underway for refreshed cabin products, a much-needed upgrade to IT systems and processes as well as a rejigged network. The airline also announced its intention to merge with sister carrier Vistara, and expects the process to be completed by early 2024.
Chief executive: Campbell Wilson, who was formerly from Singapore Airlines. Wilson is the carrier’s first chief since the carrier went private.
Operating hub: Air India is headquartered in Delhi and has a secondary hub in Mumbai.
Q1 market share: 9%. The airline is now the second largest by domestic market share and is aiming to capture about 30% market share if its merger with Vistara goes ahead.
VISTARA
The joint-venture between Tata and Singapore Airlines made a splash when it launched in 2015, being the first new full-service operator in a market that was dominated by low-cost operators. It primarily operated domestic flights until 2019, when it launched international flights to Singapore. Vistara took delivery of its first widebody aircraft, a 787-9, in early 2020 – just as the coronavirus pandemic took hold – and is the only Indian carrier apart from Air India to have widebodies in its fleet. Notably it has just recorded its first quarterly profit.
Chief executive: Vinod Kannan, a veteran of Singapore Airlines who moved to Vistara in 2019 as its strategy chief. Kannan was later promoted in 2022 to helm the full-service carrier, after a brief stint as chief operating officer.
Operating hub: Delhi and Mumbai.
Q1 market share: 8.8%
GO FIRST
The ultra low-cost operator formerly known as GoAir is arguably the first post-pandemic casualty in the Indian airline sector, after it abruptly suspended operations in early May and has reportedly filed for insolvency protection. Its collapse follows months of laying under the radar, coupled with a shrinking market share. The airline, owned by Mumbai-headquartered Wadia Group, blames the “ever-increasing” failures of Pratt & Whitney engines for its collapse, which it says have left half its Airbus A320neo fleet grounded.
Chief executive: The airline is helmed by veteran Kaushik Khona, who rejoined in 2020 after leaving the carrier in 2011.
Operating hub: Mumbai
Q1 Market share: 7.8%, one of the lowest market share the airline has captured in recent years.
AIR INDIA EXPRESS/AIRASIA INDIA
The two low-cost operators are in the process of being merged, following Tata’s acquisition of Air India. Air India Express had hitherto operated only international short-haul flights to parts of Southeast Asia and the Middle East, while AirAsia India (also known as AIX Connect) operated a domestic network. Already the two carriers have consolidated their reservations platform, website, and customer facing systems under the Air India Express branding.
Chief executive: The newly-merged unit will be helmed by Aloke Singh who was chief executive of the older iteration of Air India Express.
Operating hub: The airline operates from 10 bases: Delhi, Bengaluru, Kolkata, Mumbai, Kochi, Trivandrum, Kannur, Tiruchirappalli, Kozhikode & Mangaluru
Q1 market share: AirAsia India holds 7.3% domestic market share.
SPICEJET
The airline began operations in 2005 and was within a few years, among the largest low-cost operators in the country by market share. The 737 operator was India’s first operator of the Max variant, and had been impacted by the long grounding in 2019. More recently, SpiceJet found itself in legal woes, with its existence called into question even, over alleged non-payments to lessors and MRO providers. In July 2022, the airline was censured by regulators for a spate of safety issues, citing “poor internal safety oversight and inadequate maintenance actions”. Still, the airline has – in the words of its leader – “refused to die” and is eyeing restructuring opportunities, as well as fleet growth. It hived off its logistics unit SpiceXpress
Chief executive: Ajay Singh
Operating hub: The airline’s main hub is in Delhi, though it also has bases in Mumbai and Hyderabad.
Q1 market share: 6.9%. SpiceJet has seen its domestic market share dwindle over the past year, amid a resurgent Air India and the growth of low-cost competitors.
AKASA AIR
Akasa Air is India’s newest airline start-up, having launched operations in August 2022. The low-cost airline, backed by the late tycoon, Rakesh Jhunjhunwala. The airline operates Boeing 737 Max aircraft, and placed an order for 72 jets at the 2021 Dubai air show. It previously said it will take delivery of one new aircraft every two weeks.
Chief executive: Vinay Dube, who previously helmed Indian carriers Jet Airways and GoAir (now known as Go First) is airline chief. Dube is also the founder of the airline, together with five other co-founders who now sit on the airline’s management committee.
Operating hub: The airline mainly operates out of Bengaluru in south India, as well as Mumbai. It previously stated its network strategy involves flying from major Indian cities – known as ‘metros’ locally – to what are known as ‘tier-two’ and ‘tier-three’ cities.
Q1 market share: 3%. Akasa has seen its domestic share increase since its launch, as it ramps up its domestic network.
Editor’s note: Q1 market share based on DGCA passenger data for January-March 2023
