Top Air India Executive Seeks To Expand Market Reach

(CTN News) – Air India’s massive expansion plans have led foreign carriers, particularly those in the Middle East, to be interested in adding more capacity to India.

In response to the UAE’s request to increase the number of seats between the two countries, the Indian government recently rejected the request. The CEO of Air India is also of the opinion that India should not yield to such demands in the national interest.

Developing the business is an opportunity

Air India’s CEO Campbell Wilson recently told The Hindu he does not believe airlines from the Middle East should be permitted to expand into India in order to give Air India the opportunity to expand.

In the past few years, Air India has experienced stunted growth, allowing foreign carriers to fill the gap and fly passengers to key destinations in Europe and the United States.

Wilson believes it is in the national interest that the government permit Air India to serve these markets via non-stop routes now that proper fleet development has been initiated.

Air India has recently acquired widebody aircraft on lease as well as repaired a number of aircraft that had been grounded for lack of funding.

With just over a year since the Tatas took over, Air India has boosted its offerings to the US, Canada, and Europe, all major markets for airlines in the Middle East.

I am opposed to opening floodgates

For the first time in years, Air India has experienced a significant fleet and network expansion that could potentially position the airline as a dominant global carrier.

Moreover, the airline has signed aircraft deals worth tens of billions of dollars with Boeing and Airbus, and Wilson believes that the carrier should be permitted to reach its full potential without having to open the floodgates for foreign airlines. As quoted in the Hindu, he stated,

Refusal of more seats

The UAE recently requested that the Indian government increase the maximum number of seats between the two countries from 50,000 to 65,000 a week. According to India’s Civil Aviation Minister Jyotiraditya Scindia, “at this point, we are not looking at increasing it.”

For their international flights, carriers in the Middle East rely heavily on passengers from the Indian subcontinent. With non-stop flights and excellent service, a dominant airline in India could take away their market share.

Despite this, Wilson pointed out that more than half of the traffic flown by some Gulf carriers does not travel to their hubs. In the event that Air India is given more opportunities to increase non-stop services to popular destinations in the West, passengers will be more inclined to choose these routes.

SEE ALSO:

Stocks Of Bed Bath & Beyond Surge As Meme Trading Booms