The upcoming Air India Express (AIX) Delhi-Amritsar route, set to launch on March 30, 2025, is raising concerns about internal competition within the Air India Group.
With nearly identical scheduling to parent company Air India (AI), the decision contradicts effective airline network planning strategies, potentially reducing revenue efficiency and weakening market positioning.
Overlapping Schedules Impact Network Strategy
The new AIX service mirrors Air India’s existing flights on the Delhi-Amritsar route, creating direct competition between two carriers under the same corporate umbrella.
Planned Flight Schedules:
- Air India Express (AIX)
- Delhi to Amritsar: IX1998 | Departs 11:10 | Arrives 12:30
- Amritsar to Delhi: IX1999 | Departs 13:00 | Arrives 14:00
- Air India (AI)
- Delhi to Amritsar: AI491 | Departs 11:00 | Arrives 12:20
- Amritsar to Delhi: AI492 | Departs 13:00 | Arrives 14:20
The 10-minute difference in Delhi departure times and identical return schedules eliminate frequency diversity, resulting in self-cannibalization rather than network optimization.
Risks of Internal Competition
The overlapping schedules could lead to several negative consequences for both airlines:
- Yield Dilution: Both airlines will compete for the same passengers, potentially driving down fares and reducing overall revenue per available seat.
- Limited Network Synergy: While Air India connects passengers through its extensive domestic and international hub at Delhi, AIX primarily serves point-to-point routes, restricting its contribution to Air India Group’s broader network.
- Inefficient Capacity Allocation: Instead of spreading flights across different time slots to capture more market demand, both airlines will operate flights with similar aircraft capacities—Air India’s 182-seat A321 and AIX’s 180-seat A320—leading to suboptimal load factors.
Alternative Strategies for Better Network Efficiency
AIX could have adopted several alternative strategies to avoid overlapping with Air India’s existing service:
- Time Slot Diversification: By scheduling flights in the early morning or late evening, AIX could have expanded overall passenger options instead of splitting demand.
- Network Integration: Aligning schedules with Air India’s hub-and-spoke model at Delhi would have provided seamless connections to domestic and international destinations rather than creating isolated point-to-point services.
- Product Differentiation: AIX could have introduced unique service elements or pricing structures to justify operating on the route, rather than replicating an existing Air India service.
The Need for Strategic Adjustments
According to India’s Directorate General of Civil Aviation (DGCA), airlines must adopt data-driven scheduling strategies to ensure optimal route utilization and network efficiency.
The current AIX scheduling misstep contradicts these principles, potentially weakening the competitive positioning of the Air India Group.
With the March 30, 2025 launch approaching, industry experts suggest that adjustments are needed to optimize network performance and revenue generation. If left unaddressed, this decision could erode Air India Group’s market position rather than strengthen it.
For official updates on India’s aviation policies, visit the Ministry of Civil Aviation and DGCA.
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