Air India unveils 30%-market share plan | The Financial Express

Air India unveils 30%-market share plan

Air India MD and CEO Campbell Wilson said in a statement that “Vihaan.AI is our transformation plan to make AI the world class airline it once was, and that it deserves to be again”.

Air India unveils 30%-market share plan
Even as Air India works on its growth strategy, there has been talk of a merger between Air India and Vistara, a joint venture between the Tata Sons and Singapore Airlines. Vinod Kannan, CEO, Vistara said recently, all possibilities were being discussed.

Air India on Thursday outlined a five-year roadmap aimed at re-establishing itself as a world–class carrier while achieving a market share of 30% in the domestic market.

The Tata group-owned airline, which plans to induct 30 new wide-body and narrow-body aircraft, said the plan is code-named Vihaan.AI, which in Sanskrit means dawn of a new era. The airline would focus on expanding the fleet of aircraft, adding routes and revamping the customer proposition.

Air India reported a domestic market share of 8.4% in July. The total number of passengers flying annually in the country is expected to hit 400 million in about seven years from 200 million annually at present.

“Over the next five years, Air India will strive to increase its market share to at least 30% in the domestic market while significantly growing the international routes from the present market share. The plan is aimed at putting Air India on a path to sustained growth, profitability and market leadership,” the airline said in a release.

As part of the transformation plan, Air India has laid out an elaborative roadmap with clear milestones that will focus on dramatically growing both its network and fleet, revamping its customer proposition, enhancing reliability and on-time performance, taking a leadership role in technology, sustainability, and innovation, while aggressively investing in the best talent in the industry.

Also Read: Tata’s 5-year plan to make Air India great again: 30% market share, ‘fixing the basics’, other key focus areas

Air India MD and CEO Campbell Wilson said in a statement that “Vihaan.AI is our transformation plan to make AI the world class airline it once was, and that it deserves to be again”.

Even as Air India works on its growth strategy, there has been talk of a merger between Air India and Vistara, a joint venture between the Tata Sons and Singapore Airlines. Vinod Kannan, CEO, Vistara said recently, all possibilities were being discussed.

“Whether it’s going to be a merger, or we will have two separate airlines are all options that are still on the table. To be sure, the discussions have begun and according to me, we should have clarity on this in the next few months,” Kannan said.

Vistara’s market share in July was 10.4% putting it in second place in the industry. Indigo is the undisputed market leader, by a long mile, with a share of 58.8%.

The addition of 30 aircraft to Air India’s hangars, announced recently, would boost its fleet by over 25%, enabling it to offer premium economy haul flights for the first time. The aircraft being leased include 21 Airbus A320neos, four Airbus A321neos and five Boeing B777-200LRs.

Currently, Air India’s narrow-body fleet comprises 70 aircraft, of which 54 are in service. The count of wide-body planes stands at 43, of which 33 are operational. The rest of the existing fleet will be utilised, in phases, by early 2023. Indigo has a fleet of 276 aircraft. The total fleet size of all carriers in India is expected to grow to 1,200 from 700 currently.

India’s per-day air passenger count crossed 0.4 million-mark in April, for the first time since the pandemic broke out. The pre-Covid count of 415,000 passengers is expected to be crossed soon.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.