Competition Heats Up for Indian Carriers
Established Indian airlines are facing a competitive squeeze with new market entrants aggressively adding seat capacity and cutting prices.
Established Indian carriers like SpiceJet and Air India now face tougher competition on both domestic and international routes. (Photo: Neelam Mathews)
Established Indian carriers like SpiceJet and Air India now face tougher competition on both domestic and international routes. (Photo: Neelam Mathews)

Indian airlines face stiffer competition and downward pressure on air fares as the country's fleet stands to absorb 40 new aircraft--taking the total capacity to around 400 jets--by year-end. Existing carriers also face new competition in the shape of AirAsia India, which has just received its air operator permit (AOP) for domestic services. The new joint venture between Indian group Tata and Singapore Airlines (SIA) hopes to get its AOP ready to start service to nine Indian cities with 87 flights from the capital Delhi in September as a prelude to planned international routes. Further competition promises to come from the new A380 service into India by both SIA and Emirates Airline.

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