Soon after Campbell Wilson took over as Air India’s CEO and MD in July this year, the group set a target of achieving 30% market share over a period of five years. The target clearly indicated a merger between Vistara and Air India. Over the following weeks, Singapore Airlines group formally informed the local bourses about discussions for such a merger.
But as the regulator issued its market summary for October, it turns out that within India, the three Tata group airlines — Air India, Vistara and AirAsia India — have an aggregate market share of 25.9%. While the focus was on the traffic in October, which at 1.14 crore was a jump of 26.95% over October last year, there were many hidden undertones in the report, which could shape the way forward for the airline Industry in India
Air India and Vistara are neck to neck
The battle for the number two spot in Indian skies has been on for a while but within months of Vistara grabbing it, a new challenger has emerged in the form of Air India. While Vistara has been able to maintain the spot for 4 consecutive months, it could not breach the 10% mark as it did in July. Meanwhile, Air India has gained significantly and is now only 0.1% behind Vistara. In terms of absolute numbers, the difference is just 11,000 passengers.