Advertisement
X

Air India to Up Its International Biz, Set to Intensify Competition with Foreign Airlines

The development followed reportedly from the Air India Board meeting earlier this week, which focused on the airline’s future growth plans and Tata Group’s strategies to scale its aviation business

Tata Group’s holding company, Tata Sons, has asked Air India to increase focus on international business and intensify competition with foreign airlines. Meanwhile, the low-cost arm of the salt-to-power conglomerate, Air India Express, will compete against Indian carriers, including IndiGo and strengthen its position in the domestic market, the Economic Times reported. 

Advertisement

“Both Air India and Air India Express need full attention at this point of time. While Wilson will be able to focus his complete energies on making Air India globally competitive, the plan is make Air India Express a strong No 2 challenging IndiGo. After Vistara’s merger, the plan is quickly seize international networks, which are also hugely profitable,” ET reported, citing sources.

The development followed reportedly from the Air India Board meeting earlier this week, which focused on the airline’s future growth plans and Tata Group’s strategies to scale its aviation business. On the same day, Air India’s chief commercial officer (CCO), Nipun Aggarwal, took charge as chairman of the board to provide better commercial synergies between the two Tata Group airlines. Aggarwal played a significant role in Air India’s acquisition in 2022 and a record 470 aircraft order in 2023. 

Advertisement

His appointment came as the present Air India CEO and MD Campbell Wilson stepped down from the chairman’s role. Air India’s newly appointed chief operations officer, Basil Kwauk, also has been appointed to the board.

While Wilson will continue his role as the airline’s CEO and MD, his departure from the Air India Board’s chairman position comes at a time when much of the structural foundational work is complete, the CEO said in a letter addressed to staff, according to the Indian Express. The next chapter will now focus more on increasing Air India’s fleet, network, sales, distribution and loyalty assets, Wilson added. 

“We’ve also worked hard to improve the communication, collaboration and coordination between our Full Service and Low-Cost airlines across all functions, for the benefit of each airline across all function, for the benefit of each airline and the Group overall. With this structural work largely complete, the task at hand now is to fully leverage and optimise the Group fleet, network, sales, distribution and loyalty assets,” Wilson said.

Advertisement
Show comments