The combined force of Tata group’s airlines, namely Air India and Vistara, is expected to pose challenges for the international ambitions of IndiGo and SpiceJet, said analysts at ICICI Securities.
“Air India plus Vistara is a formidable force in the international segment. This is evident considering the network [7 of Vistara and 70 of Air India, without considering the overlap], wide body aircraft fleet of a total of 49 [2 Vistara and 47 Air India] and international market share [of 64%] of the combination,” analysts Ansuman Deb and Ravin Kurwa wrote in a note. “This entity can pose serious threat to the international long haul aspirations of IndiGo or the international cargo plans of SpiceJet,” they said.
Vistara, which started international operations in August 2019, plans to further grow its network once it receives four 787-9 dreamliners by 2023.