Aviation consultancy firm CAPA India in its latest report on Indian Aviation in 2024 said that the competition between India’s two leading airlines, Air India and IndiGo, is expected to be “intense” across routes, regions and products in the coming year. The competition seen between the two will be in a manner “previously not seen in India”, it added.
The company also expects that the expansion of Akasa Air and the potential resurgence of SpiceJet will contribute to the competitive landscape within the domestic market.
The CAPA said that IndiGo is poised to maintain its stronghold in the domestic market, overcoming capacity challenges. The introduction of the airline’s business class in 2024 will mark a significant strategic milestone.
As per the consultancy, India is having a stable airline system which is ked by two major players after a long time, and “possibly for the first time since (the sector’s) deregulation”, The Indian Express reported.
Air India is committed to taking all necessary measures to attain market leadership in the long and ultra-long haul segment. The enhanced premium product will be unveiled in the upcoming year, CAPA said in a post on X.
It added that IndiGo is also set to intensify its emphasis on international expansion. An important aspect to monitor is whether it proceeds with the speculated widebody aircraft order. If such an order is placed, it will prompt Air India Express to introduce widebody aircraft for its long-haul expansion initiatives.
As of now, IndiGo does not provide a business class option, except for the two wide-body aircraft it has leased from Turkish Airlines for its flights to Istanbul. Beyond these two planes, IndiGo’s fleet consists exclusively of narrow-body Airbus A320 family jets and ATR turboprop planes, The Indian Express said.
SpiceJet’s revival
The CAPA said that owing to new funding SpiceJet could be a revival which would “result in the emergence of a very aggressive airline that will seek to make up for 3-4 years of lost growth”. However, it also said that the airline needs more funding than what it has now.
“SpiceJet may be the most appropriate bidder for Go First if it can raise the funding. If successful, it would provide access to 50+ aircraft on the ground in India and an order book for 72 aircraft,” CAPA India said.