InvestorQ : Do you see the Tatas and Akasa Air as major threats to Indigo Airways in India?
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Do you see the Tatas and Akasa Air as major threats to Indigo Airways in India?

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Juvina Maggie answered.
1 month ago
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For now, IndiGo believes that the Tatas would be a much more of a formidable competition for Indigo Air in the airlines sector. This competition threat becomes starker after the Tatas winning the bid for Air India and also considering the deep pockets of Tata Sons. Once Air India, Vistara and Air Asia are combined, the overall market share will be around 25-27% and it will be the only airline to give the range of low cost and full-service offerings.

The Tatas are expected to regain control over Air India by the end of the year. It is coming back to them after nearly 68 years. As of today, Indigo has a clearly dominant market share of 55% of the domestic aviation market in India. But, Indigo feels that Tatas with their combination and unique positioning, would be best positioned to threaten the leadership of Indigo Air in the domestic aviation space.

On the other hand, IndiGo feels that Akasa Air, the low-cost carrier backed by billionaire Rakesh Jhunjhunwala, may take much longer before it can seriously challenge their position as it will be held up by a lot of teething problems.

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