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Air India Airbus A 320 aircraft. File | Photo: V. Sudershan
Air India Group’s Rapid Growth in International Market Share
Air India Group, which completes three years of privatisation this month, has recorded the fastest growth in market share on far-flung international destinations such as the U.S., Europe and Australia.
The airline’s passenger shares on routes to various destinations have seen significant growth. Since the Tata Group took over the reins of the airline in January 2022, Air India has seen its market share rise to 21% on international routes where it is the only Indian player to provide non-stop connectivity.
Expansion of Routes and Frequencies
Air India has added nine routes to long-haul destinations, bringing the total served routes to 37. The daily flight frequencies on these routes have more than doubled from 30 to 69.
The airline’s Chief Commercial Officer, Nipun Aggarwal, expressed optimism about the long-haul market and the growth potential for Indian airlines.
Focus on Metro-to-Metro Routes
Air India’s focus on long-haul markets is complemented by efforts to grow traffic on metro-to-metro routes domestically. The group holds a 30% market share in these routes, providing a flow of domestic passengers to its hubs in Delhi, Mumbai, and Bengaluru for international flights.
Revenue and Growth Strategy
Despite passengers to long-haul destinations accounting for a smaller percentage, Air India earns nearly 50% of its total revenue from these routes. The airline has seen impressive growth in passenger revenue and aims to further strengthen its long-haul game while preventing leakages to foreign hubs.
Efforts to attract transit passengers and draw traffic from Southeast Asia and SAARC countries are part of Air India’s strategy to enhance its international connectivity.
Future Plans and Fleet Expansion
Air India plans to introduce first-class cabins on its future aircraft and enhance the comfort and services for passengers post-COVID. The airline will receive new aircraft and retrofit existing ones to meet the growing demand for long-haul travel.
Published – January 12, 2025 08:46 pm IST
