Ever since Air India was reborn under the Tata Group umbrella, it has been one good news story after another for the venerable legacy carrier. It now seems that some major competitors from within the region are not happy with how well the airline is doing, raising their voices at this week's CAPA conference in New Delhi.
Big enough to worry about now?
On Tuesday, Reuters reported growing pressure on the Indian government to grant more access to international carriers. Air India's recent order for 470 new aircraft seems to have spooked some competitors, who sense they are missing out on opportunities to access the fast-growing Indian economy.
With Air India turning into a basket case in recent years its presence was not seen as much of a threat, but now it is part of the ambitious and well-funded Tata Group the game has changed significantly. To protect the cash-strapped national carrier through its loss-making years, the Indian government virtually froze-out foreign carriers and kept new market access to a minimum.
Looking at where Air India is heading under the watchful eye of the Tata Group and the airline's CEO Campbell Wilson, it's unsurprising that other airlines, particularly from the nearby Middle East, want to be part of India's aviation transformation. According to Reuters, the massive aircraft order "rekindled" a debate over market access at the CAPA conference this week.
Some airlines wanting more flights to and from India include Turkish Airlines, Emirates and Kuwaiti airline Jazeera Airways. Vietnam and Indonesia are also clamoring for more flights to meet the demand coming for Indian traffic. The report quoted Turkish Airlines CEO Bilal Eksi as saying, "We are not getting enough share of the market," adding that Dubai wants an extra 50,000 seats weekly on India routes.
As evidenced by Air India's order, there has been a shortage of modern widebody capacity in the country for some time. This means that many Indian travelers use foreign carriers, such as Emirates and Turkish Airlines, for long-haul flights through Gulf hubs. The strong position of mega-hubs in Dubai and other gulf states has also been jolted by the aviation ambitions of Saudi Arabia, making access to the Indian market even more pressing for Middle Eastern carriers.
Although it seems that Emirates CEO Tim Clark is not fussed about it at all, with Reuters reporting he welcomed the launches and said there was enough room for everybody without traffic curbs. "There's so much demand there that none of us will be able to deal with it if we allow unconstrained growth," he added.
Check out more Indian aviation news here.
It's not about keeping airlines happy
Now that India has found the right partner to flex its aviation muscles with, there is little appetite at the government level to open up the market to more foreign carriers. Civil Aviation Minister Jyotiraditya Scindia said the government is not currently looking at easing curbs and that Indian airlines should order more big jets to meet demand without forcing passengers to change planes. He said:
"I think it's about time that our carriers looked at the international market with greater focus. That's what we are pushing the airlines to do and that process has already started."
The unsaid message is that India wants to make its mark in global aviation and ensure it captures the value of outbound and inbound passenger growth. It is certainly not the first country to use air traffic rights to achieve that end, and it won't be the last.
What do you think about the rise of Air India? Let us know in the comments.
Source: Reuters
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Air India
- IATA/ICAO Code:
- AI/AIC
- Airline Type:
- Full Service Carrier
- Hub(s):
- Delhi Indira Gandhi International Airport
- Year Founded:
- 1946
- Alliance:
- Star Alliance
- CEO:
- Campbell Wilson
- Country:
- India
- Region:
- Asia
