Air India’s Ambitious Expansion Plans
Air India’s management is optimistic about the airline’s potential to expand its network and fully capitalize on long-haul markets like the United States as it acquires more widebody aircraft. The forthcoming merger with Vistara will enhance this growth, adding more widebody planes to the fleet alongside the new Boeing and Airbus widebody aircraft from Air India’s unprecedented order last year.
Strengthening the Route Network
Since its privatization, Air India has significantly expanded its route network and fleet. Last year’s record-breaking order of 470 aircraft will bolster both its narrowbody and widebody fleet with new Boeing and Airbus planes, allowing Air India to tap into various underserved markets.
Historically, the airline has operated Boeing 777s and 787s. Now, it has introduced Airbus A350-900s, which will soon service routes to London Heathrow and the US.
Constrained by Aircraft Availability
While placing large aircraft orders is crucial for growth, the ability to expand hinges on timely deliveries. The industry is still grappling with supply chain issues and delivery disruptions, limiting Air India’s growth.
“By receiving more widebody aircraft, the airline would be able to harness the country’s massive population’s desire to travel, strengthen its position, and gain a competitive advantage,” stated Campbell Wilson, Air India’s CEO.
Despite a lengthy wait for Boeing 777-9s, Air India can continue expanding with the new 787s and A350s. Recent reports indicate the airline is considering new US destinations, such as Dallas and Los Angeles from Delhi, and potentially a third Australian destination, Brisbane.
Competition on the Horizon
As Air India grows, it faces increasing competition domestically and internationally. Domestically, IndiGo is the primary competitor, being the largest airline in India. IndiGo’s robust domestic network, coupled with its acquisition of A350 widebody aircraft, will enable it to compete with Air India on long-haul routes.
Internationally, Air India will compete on several routes with Middle Eastern carriers like Emirates and Qatar Airways. These airlines offer top-tier inflight services and one-stop worldwide connectivity from their mega-hubs in Dubai and Doha.
While Air India’s new widebody aircraft will facilitate more direct services, both Emirates and Qatar Airways have a loyal passenger base within the Indian market. This loyalty might cause some passengers to continue choosing Middle Eastern carriers over Air India’s direct services.
Moreover, like Air India, the Middle Eastern carriers have hundreds of aircraft on order, enabling them to grow and enhance services, thereby maintaining robust competition.
