Indigo CEO Ronojoy Dutta sees competition from Tata Group backed Air India not from Rakesh Jhunjhunwala backed Akasa Air

IndiGo’s dominance is expected to be challenged after the Tata Group’s acquisition of Air India. Akasa airline, backed by Rakesh Jhunjhunwala, may also start flights from next year.

After facing the corona epidemic for one-and-a-half years, activities in the airline sector have started intensifying. By buying the state-owned Air India in the auction, the Tata Group has staked a claim on a large stake in the sky. In such a situation, it is natural for the affordable airline Indigo, which has captured more than half of the domestic aviation market, to be upset. However, IndiGo is not expected to get a significant competition from Rakesh Jhunjhunwala’s company Akasa Airline.

Air India will be responsible in financial matters: Indigo CEO

IndiGo CEO Ronojoy Dutta spoke in detail about the aviation sector in an interview on October 13. He expressed hope of getting better competition from the Tata group after the acquisition of Air India. He said a large company running on taxpayers’ money was not fair competition in the true sense. Now Air India will become more financially responsible.

Even after Air India, the market for Indigo remains

However, he also said that even after the Tata Group’s control over Air India, there is still a substantial market left for IndiGo. IndiGo focuses on flights of less than seven hours through narrow body planes. Whereas Air India’s focus remains on long distance full service flights. This leaves the market for both Air India and Indigo.

There is no danger from Akasa Air for two to three years

Regarding Akasa airline, backed by renowned investor Rakesh Jhunjhunwala, Dutt said it does not see much competition for him. He said it takes time for a new company to stand in the market. It will take time for Aakasa airline to be operational. In such a situation, we do not expect much competition for the next two-three years.

Also read: Tata Safari Gold and Mahindra Thar may compete with Force Gurkha, know what are the specialties

Tata Group is already present in the airline sector

It is noteworthy that Aditya Ghosh, co-founder of Akasa airline, has worked with IndiGo for a long time. Ghosh is considered a major contributor to IndiGo’s early success. The company is expected to hit the market next year. At the same time, the Tata group is already present in the airline sector before buying Air India. The Tata group holds stake in both Vistara and Air Asia India.