IndiGo's Ronojoy Dutta considers Tata-owned Air India as a formidable competition
By MYBRANDBOOK
With the recent takeover of Air India by Tata Group is now all ready to enhance the service standards at Indian airlines. India’s largest carrier in terms of market share - low-cost carrier IndiGo has also announced plans to improve its services.
“I see them as formidable competition but I welcome them. It is a sensible thing. I think they (Tata-owned AI) will become more economically responsible. Having a large player funded by taxpayers is not fair competition for us,” IndiGo CEO Ronojoy Dutta said at a CAPA Centre for Aviation event.
He said that the airline is taking into consideration to improve seating comfort through better cushioning on some of its aircraft.
Post the acquisition, Tatas will use AI’s long-haul international network to expand internationally.
As services at Air India will improve, IndiGo’s product offering on medium-haul flights needs to be improved to match AI’s standard, at least, partially.
Vistara and Air India - Tata Group to have two full-service carriers. The service quality of IndiGo is not to be compared to IndiGo, which is a low-cost carrier that offers cheaper flying options to passengers in a single class configuration.
Not only Air India and Vistara but also billionaire Rakesh Jhunjhunwala-promoted Akasa will add competition in India’s low fare space.
Akasa announced recently that the airline will start operations by summer months next year.
As per Dutta, the new entrant will take 2-3 years to scale up operations and therefore it will be less of a threat from competition viewpoint than Tata airlines in the immediate future.
The government, last week, announced the Tata Group to be the new owners of 100% stake in Air India, Air India Express and 50% stake in ground handling company AISATS. The transfer of the airline to new owners is likely to be completed by the end of December.
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