Air India's Phuket expansion: A direct challenge to IndiGo's dominance
Thailand extends visa-free entry to Indian and Taiwanese tourists for six months Air India holds an advantage over IndiGo in terms of transferring passengers, as all its operations are under one roof. However, for international-to-international transfers, both airlines stand on equal footing. Seven of Thailand's top ten source markets are Asian countries, with the remaining three being Germany, the UK, and the USA.
None of these three countries have direct connections to Phuket, except for seasonal charters from the UK. This traffic is currently handled by Middle Eastern carriers. Air India's timings offer competitive two-way connections from London to Phuket, while connecting flights from other European and American cities have long layovers.
With its Phuket expansion, Air India has clearly signaled its intention to take on IndiGo head-on, the only airline offering nonstop flights from Delhi to Phuket. On average, 5,000 passengers fly nonstop between India and Thailand daily. Around 200 passengers fly nonstop to Phuket from Delhi, while the rest connect via Bangkok or use alternative modes of transportation.
Air India's offering allows passengers to combine multiple destinations without changing airlines. Also Read | IndiGo, Air India to source parts locally Air India will seek an edge over IndiGo through its interline arrangement with Bangkok Air. Significantly, Air India is entering a small, monopoly-controlled market currently dominated by IndiGo, which has a cost advantage over Air India and offers more frequencies and destinations in Phuket and Thailand.
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