Air India set to expand its wings 3 years after Tata came on board
Three years after the Tata Group took custody of Air India, this airline is in the process of complete makeover. The company recently released its new strategy for growth and the evolution of its focus in the competitive aviation marketplace.
Air India set to expand its wings 3 years after Tata came on board
Three years after the Tata Group took custody of Air India, this airline is in the process of complete makeover. The company recently released its new strategy for growth and the evolution of its focus in the competitive aviation marketplace.
Air India is reorienting its offerings to serve different segments of the traveling population with its fleet of almost 300 aircraft. The full-service carrier, Air India, will focus on international routes and premium domestic markets. Conversely, the low-cost arm of Air India Express will cater to international short-haul routes, and the latter will cater to domestic travel for the price-conscious traveler.
That separation of operations has since lessened route overlaps considerably. For example, the majority of overlap on short-haul routes has dropped from 26% to only 5%, simplifying operations and increasing operational efficiencies.
Air India plans to use major cities such as Delhi, Mumbai, and Bengaluru to propel India into becoming a global civil aviation hub. They will provide links from Southeast Asia, the Far East, & SAARC regions to long-haul destinations across Europe, the US, and Canadian cities. The strategy is intended to make India a rival to the Middle East hubs of Dubai and Doha.
Nipun Aggarwal, Air India's Chief Commercial Officer, said: "This hub strategy will be crucial as we continue to develop these corridors at our hubs, but also look for other point-to-point opportunities." As part of its expansion plans, Air India will add 570 new aircraft from Boeing and Airbus over the next decade. The airline has inducted more than 90 planes over the past three years, including both wide-body and narrow-body and leased figures.
Indian carriers currently only hold a 21% stake in the long-haul international market, while this segment contributes upwards of 50% of Air India's revenue. The goal is to gain market share in the long-haul space by adding to its fleet and adjusting its routes.
Furthermore, Air India intends to match its domestic operations for more ease and connectivity by building new Greenfield airports in Noida and Navi Mumbai.
The Tata Group is likely to rise to unprecedented heights in the worldwide aviation scene as it keeps redesigning AirIndia.
