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Air India likely to lose further market share

Updated : June 15, 2018 20:26:34 IST

With the government failing to receive any expression of interests (EoI) for the divestment of Air India, it now has some tough questions to answer.

As the government considers additional equity infusion to keep the operations going, it has failed to improve the Maharaja's standing in the international market and this despite having lucrative routes and a larger fleet.

Going by the DGCA data, Air India has lost its international market share to Emirates despite lucrative routes. Emirates, Qatar Airways usually fly to Middle East and Africa and Air India is losing traffic to that area.

The fleet size of Air India had increased from April 2017 to April 2018 from 103 to 122 but the market share remained stagnant. The domestic market share is still at 13 percent but the international market share dipped by almost 2 percent.

Meanwhile, CAPA report says Indigo, Spice Jet, Vistara are all expanding, which means that Air India’s market share could dip even below 10 percent going forward.
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