SINGAPORE- The CEOs of Air India (AI), Campbell Wilson, and Riyadh Air (RX), Tony Douglas, emphasized their commitment to diverting international long-haul traffic from major foreign hubs.
During the Aviation Festival Asia event in Singapore, they highlighted that a significant portion of international traffic originating from India and Saudi Arabia currently transits through prominent foreign hubs, reported FlightGlobal.
Air India’s Future Plans
Wilson notes that achieving success in the Air India group’s international business doesn’t necessarily require a significant market expansion.
“There is a huge volume of traffic to and from India, but it’s not going non-stop,” says Wilson. “We only need to shift a couple of percentage points of that, and we’re in a very good position.”
He mentions that the prime portion of India’s international traffic currently passes through foreign hubs. However, as Air India enhances its value proposition, it aims to capture more traffic for its extensive non-stop, long-haul network.
Indian authorities have consistently expressed concerns about diverting international traffic to well-established hubs like Abu Dhabi, Doha, Dubai, and Singapore, hosting large and efficient international carriers.
Merger with Vistara
Regarding the imminent merger of Air India and Vistara (UK), Wilson notes that Singapore’s approval for the transaction is still pending, but it is anticipated to be granted “reasonably soon.” The merger also necessitates legal approval within India.
Wilson is overseeing the reorganization of the Tata Group’s airline assets. This involves the integration of Air India with Vistara and the merging of Air India Express (IX) with AIX Connect, previously known as AirAsia India (I5).
The completion of the merger was initially anticipated by March 2024.
Riyadh Air Future Plans
Douglas from Riyadh Air emphasizes that Saudi Arabia is keen to welcome travelers. However, visiting the country often involves transiting through major Persian Gulf hubs. With Riyadh Air set to launch in 2025, the airline aims to address this challenge.
Douglas raises the question, “How do you get to Saudi Arabia?” and notes that, unfortunately, it is not as straightforward as it should be at the moment. Establishing the new national carrier, Riyadh Air is envisioned as the solution to facilitate easier travel to Saudi Arabia.
During a subsequent panel discussion, Douglas highlights the substantial demand for travel between China and Saudi Arabia. He notes that such travel routes currently pass through Persian Gulf hubs and underscores China’s significance as a top priority in addressing this situation.
Douglas recalls a journey he and his colleagues undertook to four prominent Chinese cities in 2023. Surprisingly, none of these cities had a direct connection to Saudi Arabia.
Despite Air India being a longstanding legacy carrier and Riyadh Air being a newly established airline, both have secured substantial orders for widebody aircraft. Cirium fleets data shows Air India has orders for 64 widebodies, encompassing various Airbus and Boeing models. Concurrently, Riyadh Air has placed orders for 39 Boeing 787-9 units.
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