In a recent statement, Air India’s CEO and Managing Director, Campbell Wilson, emphasized the need to curtail the expansion of foreign airlines in India by restricting the increase in flying rights. Wilson highlighted that such a strategy would create opportunities for local airlines to grow, become competitive, and, eventually, lead to further liberalization.
Wilson, in an interview with Hindustan Times, explained, “It’s a balance that has to be struck, allowing the market to grow. But also incubate your local market because that’s fundamentally the most beneficial thing that you can do for the economy.” He underlined the importance of supporting Indian aviation for both economic development and international connectivity.
The government of India has been approached by various countries seeking additional bilateral air service agreements or foreign flying rights. However, the authorities have refrained from entertaining such requests, expressing concerns about the impact on Indian airlines.
Wilson pointed out the significance of nurturing the local market, stating, “The idea is to support Indian aviation. I think it’s the right thing to do for the development of Indian aviation and also Indian business and international connectivity.”
The bilateral issue revolves around traffic rights and passenger flow, with Wilson urging a careful approach to prevent a surplus of capacity that could affect Indian operators. He cited Dubai as an example, highlighting that a liberal bilateral regime has led to 60-70% of traffic from India to countries beyond Dubai being carried by foreign carriers.
Regarding Air India’s expansion plans, Wilson mentioned the upcoming deployment of Airbus 350 aircraft in January 2024. Initially targeting Europe and Australia, the airline plans to eventually extend services to North America. He confirmed ongoing recruitment efforts to hire 550 cabin crew members each month to prepare for operating the new aircraft.
On the topic of the Air India-Vistara merger, Wilson indicated that Vistara is likely to operate independently for another two to three years. The legal merger is expected to be completed by April next year, with operational integration anticipated within 18 months after that.
