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. 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.

Also Read

Adani’s detailed Hindenburg reply now said to be post-share sale on January 31

Adani Enterprises: 8 of top group firms audited by one of Big 6

From February 1, DTH and cable TV rates set to rise by 30%

IDBI Bank: The journey from PCA to highest-ever quarterly net profit

Also read: Digital wholesale rupee a landmark in history of currency; retail e-Rupee launch soon, says RBI guv Das

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.