1. Fleet structure and utilisation
Air India
• Operates a mixed fleet of narrow-body and wide-body aircraft.
• Its fleet is aging, leading to higher maintenance costs and lower fuel efficiency.
• The airline also uses wide-body aircraft on domestic routes, which is less cost-effective for short-haul flights.
IndiGo
• Focuses on a single-type fleet of Airbus A320 and A321neo aircraft with a few ATR 72s for regional routes.
• The uniformity of its fleet reduces training, maintenance and operational complexities, leading to cost savings.
• New, fuel-efficient aircraft give IndiGo a significant edge in operating costs.
2. Cost Structure
Air India
• Faces a high cost structure due to legacy inefficiencies, old aircraft and government ownership.
• The airline has significant expenses in terms of employee salaries, pensions and debt servicing.
• Poor fuel efficiency and maintenance issues further add to operating costs.
IndiGo
• Operates with a low-cost carrier (LCC) model that prioritises efficiency and cost control.
• Its streamlined operations, modern fleet and aggressive cost management help it offer low fares.
• IndiGo's no-frills approach focuses on reducing unnecessary expenses, such as free onboard meals.
3. Service model
Air India
• Adopts a full-service carrier (FSC) model, offering additional services such as free meals, baggage allowances and premium seating options.
• These services increase operating costs, making it less competitive on price-sensitive domestic routes.
• Air India also struggles with consistent service quality, facing criticism for outdated interiors and poor customer service.
IndiGo
• Operates on the LCC model, focusing on punctuality, affordable fares, and efficient turnarounds.
• Passengers value IndiGo's reliable operations and minimal delays, even if they have to pay for extras like meals and baggage.
4. Employee Management
Air India
• Has a large, unionized workforce with legacy benefits, which increases costs and reduces flexibility.
• Employee productivity is often criticized as being lower than industry standards.
• Recent privatization efforts by the Tata Group aim to streamline operations, but the overhaul is still a work in progress.
IndiGo
• Maintains a lean and efficient workforce focused on operational excellence.
• Non-unionized employees and a results-driven culture contribute to high productivity.
• IndiGo also invests in training and skills development to maintain efficiency.
5. Market Share and Brand Perception
Air India
• Despite its long history, Air India's brand has suffered due to poor management, inconsistent service and financial struggles.
• Its focus on both domestic and international markets weakens its ability to dominate the domestic sector.
IndiGo
• It controls over 61% of the domestic market share, making it the clear leader.
• It is considered a modern, reliable and customer-friendly airline.
• IndiGo's aggressive expansion and ability to identify profitable routes puts it ahead of competitors.
6. Pricing Strategy
Air India
• Struggles to compete on price due to its high cost structure.
• Full-service offerings attract a limited segment of travellers, such as business class and premium customers.
IndiGo
• Offers highly competitive fares, which attract price-sensitive leisure and business travellers.
• Its low-cost model allows it to make a profit even with low margins.
7. Domestic Network
Air India
• Operates a smaller domestic network than IndiGo.
• Focuses more on metro cities and fewer regional routes.
IndiGo
• Boasts an extensive domestic network with flights to metro cities, tier-2 and tier-3 destinations.
• Leverages government initiatives such as UDAN (Ude Desh ka Aam Nagrik) to enhance regional connectivity.
8. Customer Experience
Air India
• Lags behind in punctuality and overall customer satisfaction.
• Outdated systems and inconsistent service often lead to negative reviews.
IndiGo
• Prioritises punctuality and hassle-free service, which domestic travellers love.
• Simple, transparent policies and a focus on operational excellence keep travellers loyal.
9. Future Plans
Air India
• Placed orders for 470 new aircraft including Airbus A320neo, A350 and Boeing 777X to modernise its fleet and improve fuel efficiency.
• Focused on strengthening domestic connectivity and launching new long-haul international routes targeting the US, Europe and Asia.
• Upgrading inflight services, cabin interiors and digital systems to enhance customer experience and compete globally.
IndiGo
• Ordered over 500 Airbus A320neo family aircraft including A321XLRs to expand its fleet and enter long-haul international markets.
• Launching long-haul routes to Europe, North America and more destinations in South-East Asia and the Middle East.
• Investing in fuel-efficient aircraft and exploring sustainable aviation fuels to reduce its impact on the environment.
Air India faces a big challenge to beat IndiGo in the domestic market. IndiGo's dominance stems from its low-cost model, modern fleet, extensive network and focus on customer satisfaction. In contrast, Air India is struggling with high costs, outdated fleet and service inconsistency. Although the acquisition of Air India by the Tata Group is expected to improve, the airline will need significant restructuring and strategic focus to challenge IndiGo's dominance in the domestic market.
Tell me comment section according yours, which is best airlines?
