On a sultry monsoon evening in August, the who's who of India's aviation industry gathered at a plush hotel in Delhi for a coming-out party. The banquet hall was full, and the menu and cocktails were impeccably curated on the theme 'taking India to the world, and the world to India. Television and YouTube channels streamed the event live.
It did not matter that the 'new kid on the block' was nearly a century old. The excitement over the 'relaunch' of Air India was palpable, as a new logo, the Vista, and a bold new livery were unveiled.
"There is more than a little bit of Air India in everyone," said N. Chandrasekaran, chairman of Air India and its parent company, Tata Sons. "Our aim is to make this airline a truly world-class and iconic airline that every Indian will be proud of."
The average Indian was thrilled when Air India flew back into the hands of its original owners, the Tatas, in 2022, after floundering under government control for decades. But will Indians continue to feel the same?
The duopoly
The consolidation of the four airlines in the Tata fold and the domination of the market leader Indigo Airlines have led to a duopoly in the Indian skies. As a result, the affordable ticket rates that India was known for since the early 2000s have suddenly disappeared. According to the Airports Council International, India saw the highest increase-41 per cent in airfares in the Asia-Pacific region in the first three months of this year over pre-Covid times. One reason is the impressive passenger growth. Domestic flyers increased by 43 per cent during January-March this year, compared with the same period a year ago. Nine crore people flew till June from the beginning of the year.
This story is from the October 01, 2023 edition of THE WEEK India.
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This story is from the October 01, 2023 edition of THE WEEK India.
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