India is all set to witness a growth in the number of low-cost air carriers. In 2022, a new ultra-cost airline, Akasa, backed by Rakesh Jhunjhunwala will start operations in the country. Then airlines such as Jet Airways and Air India are also expected to make a strong comeback. Go First is also going for Initial Public Offering (IPO) soon and AirAsia India and Vistara will continue to operate the way they are right now. All of this might set a commotion for the current market leader, IndiGo.
According to TOI report, IndiGo CEO, Ronojoy Dutta, said, India’s low-cost airline space is getting overcrowded. All of the airlines in the low-cost space will be competing for a larger market share. At present, IndiGo has over 57% market share. While this isn’t expected to change anytime soon, the competition can surely wear off on IndiGo in the long run if the airline isn’t innovating fast.
The competition is surely going to increase. While this is a little stressful for the airlines, it is absolutely a golden thing for the customers. The higher the competition, the more customers will be prioritised and taken care of.