The market leader, IndiGo, followed a consistent strategy of on-time performance, new fleet, competitive fares and hassle free service. The exit of Kingfisher in December 2012 helped and Indigo today has a dominant market share of over 30 percent.
The Tata‘s will hold 51 percent and Singapore Airlines will get 49 percent. But the deal may face regulatory turbulence as Tata's also hold 30 percent in a joint venture (JV) with Air Asia India reports CNBC-TV18‘s Ronojoy Banerjee and Animesh Das.
Also, this is the first FDI deal in aviation space and has its own complexities. Other foreign carriers may switch gears after they find Indian government committed to attract foreign investors, they say.
The DGCA has decided to ground every Boeing 787 Dreamliner in the country and with this move, Air India's dreams of returning as the king of the Indian skies have taken a severe blow, reports CNBC-TV18‘s, Sunanda Jayaseelan.
With air ticket prices touching the skies this festive season, allegations of cartelisation by airlines have resurfaced. While a concerned civil aviation minister Ajit Singh has suggested a probe into the matter, experts say higher fares are here to stay.
Low cost airline Spicejet has some big expansion plans lined up this financial year. But much would depend on how effectively it will be able to raise capital to execute those plans.