Indian carriers soar on international routes but foreign rivals lead

Indian airlines are ramping up their international presence by adding more direct flights. Despite these efforts, foreign carriers continue to dominate on many routes outside of West Asia, particularly to Europe and Southeast Asia.

Take AirAsia, for instance. Although it struggled to establish itself in the domestic market and sold its stake in AirAsia India to the Tatas, it remains influential in markets like Malaysia and Thailand.

According to Cirium data, AirAsia leads the India-Malaysia route with 46 per cent of the overall seat capacity share for September 2024. Indian carriers, in comparison, hold less than 5 per cent of the capacity on this route.

AirAsia Thailand is also making its mark. It is the third-largest airline on the India-Thailand route, with a 17 per cent seat capacity share in September, surpassing both Air India and Vistara combined. Thai Airways remains at the top with a 36 per cent share, followed by IndiGo.

On the popular India-Singapore route, Singapore Airlines and its subsidiary Scoot remain dominant despite competition from IndiGo, Air India (A-I), A-I Express, and Vistara. Cirium data shows that these two airlines control nearly 57 per cent of the seat capacity in September. Despite Vistara’s merger with A-I and A-I Express joining Tata’s portfolio, the combined share of these airlines is only 24.8 per cent. Including IndiGo, the total share rises to 43 per cent.

In Europe, the presence of Indian carriers with direct flights is still minimal. For example, Air France controls 79 per cent of the seat capacity on direct flights to India. According to September 2024 data, A-I has the remaining capacity. In Germany, Lufthansa leads with 64,970 seats available in September, while A-I offers only 7,680 seats.

This limited capacity presents a considerable opportunity for A-I and IndiGo, which are acquiring larger aircraft to expand their direct flight services. In the Netherlands, KLM dominates with a 75 per cent seat capacity share, with A-I as the only other competitor. In Switzerland, Swissair offers 14,160 seats in September, compared to A-I’s 4,608 seats. In Italy, ITA Airways and Neos control 62 per cent of the direct flights from the Indian market.

However, there is positive news for Indian carriers on the India-UK route, where A-I (including Vistara) has overtaken British Airways to become the leading player with a 54 per cent seat share. UK carriers British Airways and Virgin collectively hold the remainder. In the US market it is only Air India which calls the shots from India with over 66,700 seats while  US airlines United and American have only a small presence from India with only 16,830 seats.  

In emerging markets like Vietnam, where direct flights have been introduced only recently, Vietnamese airlines have capitalised on the growing popularity of the destination among Indian tourists.

Low-cost carrier VietJet Air has been particularly aggressive, capturing more than half of the total seat capacity on the India-Vietnam route. Together with full-service carrier Vietnam Airways, they control over 75 per cent of the market. Indian carriers, led by IndiGo (with A-I operating from just one destination), hold the remaining share.