IndiGo sees intense competition ahead as airline space is action-packed now

The civil aviation space is witnessing much action these days. Tatas have emerged the winner for buying out State-owned Air India for Rs 18,000 crore. Billionaire investor Rakesh Jhunjhunwala’s Akasa is all set to take off next year. Grounded Jet Airways may also stage a comeback soon. As airlines are set to witness more competition, the question flyers are asking is air ticket prices will come down or not.

“There will be more competition. That’s how we see it,” IndiGo CEO Ronojoy Dutta is quoted as saying in the report that appeared in The Times of India.”

Dutta said indications are that Tatas will be a full-service carrier, though it is not clear yet. “India really has scope for a full-service carrier,” he is quoted as saying in the report.

He further said he will have to see how it emerges if the Tatas go for both low-cost full-service models.

IndiGo accounts for almost 57% of the domestic market share, the report said.

Meanwhile, the Business Standard reported that air traffic movement may near pre-Covid level this winter. Domestic airlines have received approval to operate 22,287 flights per week (around 3,183 flights daily) in the winter schedule, which begins on Sunday. This is just 4.38% lower than the number in the winter schedule 2019.

The civil aviation ministry had already allowed airlines to operate at 100%. They have been operating at 70-75% capacity in the wake of Covid restrictions.

The Business Standard quoted a SpiceJet spokesperson saying that the airline is expecting the Boeing 737 Max aircraft to return to operations very soon.

“As soon as Max returns to service, hopefully in the first half of November, our flight schedule will be revised and more flights will be added.”