Vistara-Air India merger to strengthen aviation sector | The Financial Express

Vistara-Air India merger to strengthen aviation sector

India’s aviation market is may be moving towards a duopoly following the merger of two full-service carriers Air India and Vistara, consultancy and research firm CAPA India opined on Tuesday.

Vistara-Air India merger to strengthen aviation sector
In the international market, they are expected to grow from 37.8% in the second quarter of the current fiscal to over 50%. (IE)

India’s aviation market is may be moving towards a duopoly following the merger of two full-service carriers Air India and Vistara, consultancy and research firm CAPA India opined on Tuesday. The merger, CAPA said, would strengthen the sector.

“The competitive dynamics in India are moving towards a two-pillar system around the Air India Group and IndiGo. The two carriers combined are in due course expected to achieve a domestic market share of 75-80%,” CAPA India said in a statement.

In the international market, they are expected to grow from 37.8% in the second quarter of the current fiscal to over 50%, it said.

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It added that “this will redraw market and consumer power in the international arena back to Indian carriers, which has historically been dominated by foreign airlines”.

India needs a high quality, dependable long-haul and ultra long-haul airline to meet the country’s air connectivity requirements. The combined entity is in line with India’s aspirations to be a $5-trillion economy, CAPA stated.

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First published on: 30-11-2022 at 05:40 IST