Gulf airlines edge past Air India again as post-Covid flying picks up

Air India's dwindling market share is significant as the Tata-owned airline is reported to induct about 200 more planes in what is being billed as one of the largest aircraft orders in Indian aviation

After cornering a third of the international flying market to and from India, largely owing to air bubble arrangements and repatriation flights under the Vande Bharat mission, the now Tata-owned Air India has again lost out to Middle Eastern carriers in 2021-22.

According to latest figures published by the Directorate General of Civil Aviation (DGCA), from April to December 2021-22, Air India and its subsidiary Air India Express together commanded 28 per cent of the international traffic to and from the country. Meanwhile five Middle Eastern airlines led by Qatar Airways bagged almost 30 per cent of the market during this period. (See graphic)

In 2020-21, when flying restrictions were in place, the share of these Gulf carriers had dropped to 24 per cent while Air India and its subsidiary’s share rose to more than a third. Air India Express is Air India’s low cost subsidiary that mostly operates flights to the Gulf and other short haul destinations.

According to DGCA, just 15 airlines carried more than 90 per cent of India’s international traffic during the year. In the pre-pandemic years, they accounted for three-fourths of it. Six of these were Middle Eastern airlines. Dubai-based Emirates was the top Middle Eastern carrier till recently. In 2020 as nations and businesses started locking down in the Gulf, thousands of Indian migrant workers returned home. In 2022, Qatar is hosting the FIFA World Cup and many of these migrant workers are now on flights back to be employed in construction activities for the year’s most anticipated sporting event. The result is that in 2021-22, Qatar Airways bagged the top market share among Gulf airlines.  

Air India's diminished market share assumes significance as the Tata-owned airline is reported to induct around 200 more planes in its fleet in what is being billed as one of the largest aircraft orders in Indian aviation history. Most of these planes will be narrow bodied planes capable of flying not just domestically but also on short haul routes to the Gulf and nearby South East Asian destinations.

In 2014, three out of every 10 passengers to and from India flew on these Gulf carriers. Their share dipped marginally by 2017 when India’s largest low cost carrier Indigo along with Ajay Singh owned Spicejet started flying international to Middle East destinations. The grounding of Jet Airways did little to revive their dominance as much of Jet’s Gulf traffic was successfully cornered by Indigo, Spicejet and Air India Express. Even British Airways managed to break into the league after Jet’s disappearance from international skies. Jet had privileged slots at Heathrow and Birmingham and along with Air India was the only Indian airline ferrying people to the UK.  

The surprise gainer was US based United Airlines, which for the first time broke into the league of top international carriers in the country in 2020-21. As many Indians returned from the US, Air India was doing the bulk of the flying in the initial days. But in July the US accused the Indian government of “restrictive and discriminatory practices” by excluding US airlines from the Vande Bharat repatriation mission. The Indian government then allowed more US carriers like Delta and United to operate evacuation flights. While this contributed to the rise in United Airlines eminence in India, it has continued its run even in 2021-22 as business, academic, tourist and other travel resumed between the two nations. It raised its share from 2.5 per cent in 2020-21 to almost four per cent in the first few months of 2021-22.