AIR INDIA: Joins the challenge to Qantas international

Chief Executive Campbell Wilson says Air India, will challenge Qantas with twice-daily frequencies to Melbourne and Sydney, and an expanded footprint in Australia. That is, once it gets more aircraft.

The AFR is reporting that Mr Wilson has said that Australia is Air India’s third priority market after North America and Europe. The one million members of the Indian diaspora resident in Australia give it that status.

Aircraft Orders

Air India has 470 firm orders for aircraft spread over the major manufacturers Airbus and Boeing. Qantas, by comparison at 200 on order has less than half that order. With those additional aircraft, Air India wants to increase its flights to Australia. Its aiming for 17 per week, giving Melbourne and Sydney a twice-daily service. It also has plans to add Brisbane to its network.

Wilson has his eyes on taking on some of the hub market traffic currently sitting with Middle East airlines like Emirates and Qatar.

Service, seating and reputation

Frequency is only part of the problem. Reputation for service and comfort and onboard cleanliness and safety standards are the other parts of the problem. But Wilson has a plan for that. Air India will retrofit upgraded seats to its current fleet, transforming international services to win back travellers.

No longer government-owned, Air India is now part of the behemoth Tata Group. Air India is also merging with the Singapore Airlines-backed Vistara group. Vistara has a much better reputation for hard product and service than Air India has recently.

The Indian-based airline claims not to be pursuing a hub strategy similar to Middle Eastern airlines. However they are promising better connectivity for Australians wishing to travel onwards to Europe. That sounds like a hub strategy to me.

Qantas is not taking this lying down

Separately, with its new fleet of narrow-body Airbus A321 XLR aircraft, Qantas also has its designs on the sub-continent. Head of international, Cam Wallace has foreshadowed using the aircraft on new ‘thin’ routes like Brisbane or Perth to India. The term ‘thin’ in this context means markets with lower demand, and therefore fewer passengers.

Open Skies

Unlike other competitors on the Australia to Europe route, say, like Qatar or Turkish Airlines, Australia and India have an open skies agreement. This allows both Qantas and Air India to easily expand their services without having to go to the government of either nation for approval.

2PAXfly Takeout

This is going to make for an interesting future.

We already have Turkish Airlines entering the East Coast Australian market, with direct flights from Istanbul via Singapore and Kuala Lumpur. Those will turn into direct in 2026.

Qatar Airways has an application to more than double its flights into Australia being considered by the government. Given the turmoil of the Australian Government’s rejection of a similar application in 2023, I can’t see them being refused again. That determination may happen this year.

Although much delayed, Qantas plans to finally launch its Project Sunrise non-stop flights to London and New York in 2026.

Now add to this a desire by Air India to increase its market share in Australia, and you have a much more competitive international market. And as anti-competition bodies always say – more competition places downward pressure on prices.

2025 and 2026 are looking like interesting years in the history of Australian aviation, especially for the fare-paying public travelling long-haul international.