Wednesday, September 20, 2017

How International, Indian Air Carriers Joining Forces To Leverage India’s Aviation Market

Earlier this month, Japan Airlines (JAL) and India’s new premium airline Vistara signed an MoU to pursue commercial opportunities that combine the synergies of both airlines. Only recently in August, the Californian online marketer and hospitality player Airbnb made its first airline partnership in India by tying up with Jet Airways. These deals in the Indian aviation space followed a series of other recent collaborations such as Qatar Airways’s interline partnership with Vistara and Jet Airways’s code share agreements with Air France, KLM Royal Dutch Airlines and Delta Air Lines inked in July.

Yes, it’s time for strategic alliances in India’s airline industry now. Close on the heels of a big boom that is predicted in Indian aviation sector, it is witnessing a host of cross-border partnerships and strategic alliances between the industry players and other stakeholders.

Aiming at a larger share in the world’s fastest growing air travel market, several foreign airlines have already signed or in the process of signing business collaborations. While pioneers like Air India and Jet Airways are already operating several partnership with local and foreign peers and are looking for more, new entrants such as SpiceJet, Vistara and AirAsia too are lured by foreign peers to float unique alliances to get connected to the world’s fastest growing aviation market.
Crowded skies and the rising competition in India’s aviation sector, set to be the third largest aviation market by 2026, is forcing domestic players to attain maximum operational efficiency and deliver best customer satisfaction through collaborations. “While India offers a high growth market for everyone in the international arena, delivering satisfying and cost-effective service to customers is a compelling need for the domestic players,” says a senior aviation industry expert. So, this is a dual trigger that prompts the increased number of cross-border partnerships in the sector, adds industry consultant, who doesn’t want to be identified as his organisation is currently working on certain deals in the sector and thus need to maintain client confidentiality. “Excellence in operations and exceptional service to customers is the new mantra in the Indian air travel sector now as competition is on a rise,” he adds.
20/091/7 Business World