Air India, the country’s most traditional airline and which was taken over by the Tata Group, is evaluating a possible entry into the Indian regional aviation market.
Renewed and with a huge backlog of orders, the carrier intends to take on IndiGo, a low-cost airline that has expanded its presence in the country and is preparing to debut on international routes.
IndiGo itself plans to expand its operations in the regional segment where it has a 60% share.
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In May, local media reports revealed that the airline was considering an order for 100 aircraft. Conversations would take place with ATR, which already operates 45 ATR 72s, but also Airbus (A220) and Embraer (E-Jets).
Air India’s entry into this segment of air travel would therefore be a reaction to IndiGo’s expansion and a way of feeding its hubs.
According to a Mint source, discussions are currently internal and there will be more rounds until a final decision is made, however, the company intends “to provide a complete travel solution to Indian travelers.”
Regional fleet in India barely exceeds 100 planes
Air India already had a regional arm while it was a state-owned company, Alliance Air, but it was not included in the tender in which the parent company was purchased by the Tata Group.
Today Alliance Air has the second largest fleet of regional aircraft in India, with 20 ATR turboprops.
In total, there are just over 100 regional aircraft in operation in the country, less than half of IndiGo’s fleet of A320 jets.
Turboprops predominate, especially by ATR and some Dash 8s, while regional jets are little used for now.
In addition to five CRJ-200s at Zooom, there are eight Embraer jets at Star Air. The Bangalore-based airline has four ERJ 145s and recently added another four E175s with 76 seats to its fleet.
IndiGo and Air India’s plans could be a big boost for manufacturers ATR and Embraer, which are currently the only ones to offer aircraft under 100 seats on the market.
