## India’s Domestic Aviation Landscape: A Battle for Dominance in Winter 2023
The winter schedule has brought with it a wave of expansion and consolidation in India’s domestic aviation sector. Air India Express is bolstering its services from Chennai, while IndiGo is aggressively expanding its presence on the lucrative Delhi-Mumbai route, known as the IndiGoStretch. Meanwhile, the merger of AIX Connect (formerly AirAsia India) with Air India Express, alongside Vistara’s impending merger with Air India this month, paints a picture of a rapidly evolving landscape.
Data from Cirium, a renowned aviation analytics company, reveals interesting trends for November, the first full month of operations in the Northern Winter Schedule. One striking observation is the rise of Hyderabad as a major domestic hub. Last year, Hyderabad witnessed impressive passenger growth, surpassing the 25 million passenger mark and consistently recording double-digit passenger traffic increases. While it may have missed out on becoming the third hub for Air India to Bengaluru, Hyderabad stands out as the city with the maximum number of domestic carriers operating. Eight airlines, including IndiGo, Air India, Air India Express, AKasa Air, SpiceJet, Star Air, and Fly91, offer flights from Hyderabad, surpassing the seven carriers operating from Mumbai, Bengaluru, Kolkata, and Pune. Delhi, India’s largest airport, sees a comparatively smaller number of domestic carriers, with only six airlines operating.
Interestingly, Fly91, which previously operated to Bengaluru, has since ceased operations in the city, leading to a slight decrease in the number of airlines serving Bengaluru.
Delhi’s Dominance in Connectivity
Beyond the number of airlines, connectivity is another crucial factor in assessing an airport’s significance. In terms of connectivity, Delhi reigns supreme, with a total of 64 scheduled passenger airlines operating from the airport. Mumbai follows closely with 49 airlines, and Bengaluru comes in third with 36. Chennai has 34 airlines, while Hyderabad has 29. Further down the list, Kochi has 27, Ahmedabad 22, Kolkata 21, and Trivandrum 17. Kozhikode and Lucknow tie for the tenth spot with 13 airlines each.
Delhi’s dominance extends beyond the number of airlines, as it boasts non-stop flights to a remarkable 143 destinations in India and abroad. Mumbai follows with 109 destinations, and Bengaluru with 100, making these three cities the leading hubs in terms of connectivity. Hyderabad, with 88 destinations, completes the top four. The remaining top ten airports in terms of connectivity include Chennai (66 destinations), Kolkata (61 destinations), Ahmedabad (53 destinations), Lucknow and Pune (37 each), and Kochi (33 destinations).
Monopoly Routes and IndiGo’s Dominance
The current winter schedule boasts 1136 city pairs, and a staggering 781, or 68%, of these routes are monopolies, with just one airline serving the route. Duopoly routes, with two airlines competing, account for 18% of the total routes, leaving only a small percentage for multiple airlines to compete. IndiGo holds the lion’s share of monopoly routes, controlling a staggering 542 out of 781. Alliance Air follows with 94 monopoly routes, and Star Air with 48. IndiGo’s influence extends beyond its monopoly routes, as it operates a massive 890 sectors, representing 78% of all routes in the country. An impressive 87% of IndiGo’s own routes are monopolies, leading to accusations of the airline manipulating fares due to its dominant position. However, recent financial results, which saw the airline record a quarterly loss of INR 987 crore, suggest that IndiGo’s monopoly has not translated into an ability to significantly raise fares.
IndiGo’s aggressive expansion plan is facing a slight hurdle due to a strike at Boeing, which has impacted the delivery of new aircraft for Air India Express. However, IndiGo is capitalizing on this delay by establishing its own dominance in the market.
Future Developments
Bengaluru has recently crossed the 100-destination mark, and Delhi could soon surpass the 150-destination mark with the addition of new airlines and Air India’s planned expansion. The Indian aviation sector is set for a significant shift in mid-2025 when Noida International Airport at Jewar and the Navi Mumbai airport become operational. These new airports are expected to draw traffic from Mumbai’s current airport, particularly until the renovation and revamp of Terminal 1 are complete. The competition for slots at these new airports could lead to challenging financial quarters for airlines as they prioritize capturing traffic and aim for profitability later.
This winter, India’s domestic aviation scene is a dynamic landscape with expansions, mergers, and fierce competition for dominance. The future holds exciting possibilities with new airports, shifting connectivity, and a continued battle for market share. Only time will tell which airlines will emerge as the true winners in this evolving aviation ecosystem.
