Monday, May 29, 2023

Indian skies head for Air India-IndiGo duopoly

After decades of turbulence in the sector with many private players shutting down, the Indian airlines sector seems to be moving towards stability and a sort of duopoly.
The Tata group which acquired the government owned Air India will merge its two other airlines — Vistara and AirAsia — with the former.
As of now the combined market share of the three airlines is 25.1 per cent (Air India 9 per cent, Vistara 8.8 per cent and Air Asia 7.3 per cent).
Post merger and with fleet expansion and the Tata Group’s financial backing, Air India’s market share should increase if all things are on proper track.
The market leader has InterGlobe Aviation with 55.7 per cent market share and SpiceJet is left with 6.9 per cent, as per the figures released by India’s Ministry of Civil Aviation for the period January-March 2023.
Going by the situation on the ground, the Indian airline market may see two major players — InterGlobe and Air India — enjoy sort of a duopoly, with the others — if they continue — having a small share in the pie.
The smaller players may burn their figures if they try to play the pricing card to gain market share. They may be happy with the pricing of the two major players while trying to attract custom with differentiated service.


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