There is one challenge that will make or break the new Air India’s profits and success. A challenge that will see the new carrier go head-to-head with some of the most powerful airlines in the world. Let me better elaborate my thoughts and what I am referring to.
What Is Air India’s Biggest Challenge and Hurdle Towards Success?
Although Air India is the flag carrier of India and soon will be the country’s only full-service carrier, it enters a market with many foreign airlines well positioned. Specifically, India has become over the years the most valuable market for the biggest middle eastern carriers. The likes of Qatar Airways, Emirates, Etihad, and Saudia have taken over massive chunks of the international traffic generating in or directed to India.
It won’t be easy to win back market share against these competitors, however this is the most important and fundamental piece of the Air India success puzzle. AI will necessarily need win back new customers from these airlines to be successful. The big bucks in aviation are in the long haul. It is almost unheard of for a full-service airline to be successful without a strong long-haul network.
The tricky part of cutting out as much as possible these foreign airlines is:
- Offering a service which is at least comparable to the high standard service we associate with them. Offering non-stop flights without a high-level service might not be enough. People will put up with a stop along the way if offered a higher level of service.
- Getting the pricing right. You can’t charge too much of a premium for non-stop flights that bypass the middle east. If the price is too high with the vast alternative flight options, with elevated service standards, in the middle east will push passengers away.
How Can Air India Turn the Tide in Its Favour
So, what can Air India do to ensure itself success in the long run against such fierce competition? The airline has already started investing heavily in the two aspects of the business that are key to the carrier’s success:
- Fleet renovation
- Onboard Product
Simply put, you can be competitive if you don’t have efficient and comfortable planes, especially when going against the middle eastern carriers. Having new planes with comfortable interiors and offering convenient point-to-point services is the magic recipe Air India must cook up.
The airline has already started receiving its brand-new state-of-the-art Airbus A350-900s and A321neo jets with completely new interiors. The new interiors are aligned with the new brand identity the company is pushing out. Service and amenities are also getting a major overhaul and should ensure all together should ensure a much more pleasant travel experience.
The questions are, will Air India be able to deliver consistently on its promise of a more premium travel experience than in the past? Will it last? And will the parent company continue to invest attention in the carrier so that standards and quality remain high over time?