India In 2022: What Happened In The Aviation Industry?
A look back at the year’s biggest stories.
2022 marked a seismic shift for Indian aviation. After two years spent trying to survive the pandemic, this year saw airlines return to their roots and once again grow their passenger counts and destinations. From new names to old names and to freshly-privatized names, here’s a look at 2022’s biggest stories.
Air India returns to Tata
Undoubtedly the biggest story of the last 12 months was the successful privatization of Air India. The ailing flag carrier wrapped up a two-year-long process and moved from government control to the Tata Group. The move represented a homecoming for the airline, which was founded by JRD Tata 90 years ago in 1932.
Since its privatization in January 2022, changes have been made at breakneck speed. Despite a bumpy start, which saw no permanent chief executive until May, there have been crucial improvements to the passenger experience. Former Scoot CEO Campbell Wilson is now at the helm of Air India as it plans a global expansion.
The last year has seen some quick changes at the carrier. The top priority has been fixing existing passenger issues, namely in service and scheduling, and then an expansion on key unserved routes. On both, progress has been made.
Firstly, Air India took the crown as India’s most punctual airline in November, a title considered inconceivable a year prior and not achieved for the last eight years. Secondly, the carrier has announced plans to add 42 planes in 2023, including 11 Boeing 777s and 31 Airbus A320neos. This will aid in a huge long-haul and domestic expansion as the carrier hopes to become the central competitor in India.
All of these steps are toward reaching its five-year ‘Vihaan.ai’ vision, which will see Air India secure a 30% domestic market share, triple its fleet, and improve the passenger experience amid more. The story of Air India will only evolve in 2023, so keep an eye out for more.
New kid on the block: Akasa Air
As aviation emerged from its darkest period in recent history, so did new players. India welcomed its latest carrier, Akasa Air. Founded by former Jet Airways CEO Vinay Dube and backed by legendary investor Rakesh Jhujhunwala (who tragically passed away a week after the inaugural flight), Akasa hopes to double down on the ultra-low-cost strategy and capitalize on growing air traffic in the country.
Akasa Air made a big splash with its order for 72 Boeing 737 MAX aircraft in November 2021, of which 11 are already in the fleet. As the second MAX operator in the country, and the only one taking deliveries currently, the airline is hoping to replicate the success of market leader IndiGo, which made a similar move with the Airbus A320 back in 2005.
Since its debut in August, Akasa now flies to 10 destinations across India and hopes to go international in 2023, once it takes delivery of 20 aircraft. The carrier plans to grow by connecting Tier-2 and 3 cities to major hubs, boosting traffic while slowly expanding across the busier routes as well.
Tata Group consolidates its holdings
The ripple effects of Air India’s privatization affected three others, AirAsia India, Air India Express, and Vistara, all owned wholly or partially by the Tata Group. Inevitably, consolidation came in November, with Tata announcing that Vistara, a 51-49% joint venture with Singapore Airlines, would be merged with Air India. Meanwhile, AirAsia India, which Tata bought 100% of from its namesake carrier, and Air India Express would become the budget arm of the flag carrier.
Notably, Singapore Airlines is now an owner of Air India as well, agreeing to take a 25% stake and participating in future capital injections as well. The agreement means the East Asian carrier will have a much broader presence in India, boosting connectivity and playing its multi-hub strategy.
While the end of Vistara will sadden many, it makes sense for Tata to create one full-service carrier that can dominate on routes to Europe and North America, challenging larger Middle Eastern players in the process. The full merger will take until 2024 but expect to see a lot more coordination between the quartet in the future.
An old name struggling, again
The ups and downs of 2022 have not been felt anywhere more than Jet Airways (2.0). In May, the recently-rescued-from-bankruptcy airline received its Air Operators Certificate (AOC), allowing it to theoretically relaunch flights. Hiring of senior staff, cabin crew, and pilots quickly resumed as well, and all signs pointed to a winter relaunch of the once prominent name.
However, the ghosts of the past are not easy to shake. Creditors, from passengers waiting for refunds to employees to banks, quickly came knocking on the door of the Kalrock-Jalan consortium, the new owners of Jet Airways. With the threat of insolvency looming if deals cannot be cut, Jet Airways has been forced to send staff on leave and delay its relaunch into 2023.
The saga of Jet Airways refuses to come to an end and four years after seizing operations, another passenger flight is yet to take off.
SpiceJet’s safety woes
Safety was in the spotlight in 2022 as low-cost carrier SpiceJet found itself in a string of incidents. From broken sensors to smoke in the cabin and even one tragic fatality, regulators moved swiftly to slash SpiceJet’s flights until they reached the required standards. From July to October, the carrier was only allowed to fly 50% of its schedules, as it fixed issues with aircraft and staffing quickly.
The last two months have seen the situation improve dramatically, with no major incidents being reported and SpiceJet being allowed to return to a full schedule. Notably, the situation highlighted the efficiency and stringent approach of the Civil Aviation Ministry and DGCA to ensuring Indian skies remain the safest in the world.
Lots more to come in 2023
While this article might be coming to an end, there is a lot more to look forward to in 2023. With all pandemic restrictions gone, airlines will be dealing with increased demand and costs, hoping to return to sustained profitability once again. For passengers, once more, the sky is the limit. Follow Simple Flying next year for more in-depth coverage of India and global aviation, thank you for reading!
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