Air India to open second hub in south India in a bid to improve operations

The hub may come up in Bengaluru or Hyderabad and will work primarily to strengthen its operation in Mumbai

Air India is soon expected to open a second hub in the southern part of the country as it aims to strengthen both international and domestic operations, according to a report by Mint on Tuesday. Currently, the Tata-owned airline's only hub is located in New Delhi.

The new hub may be established in either Bengaluru or Hyderabad and will primarily focus on bolstering its operations in Mumbai. Both Air India and Air India Express will utilise this hub for domestic and international flights, Mint reported.

Airlines use hubs as transfer points to fly passengers to their final destinations. The core operations of an airline revolve around its hub. For example, Emirates has its hub in Dubai, Cathay Pacific in Hong Kong, and British Airways in London.

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With the establishment of this new hub, Air India also aims to capture a larger market share in airports other than New Delhi, including smaller ones.

The Centre has been encouraging airlines to open more aviation hubs to facilitate one-stop international connectivity via India to other overseas destinations. According to the Centre, this will also boost investments and commerce within India.

According to Mint, Air India plans to expand its flights in Tier-II and Tier-III cities via Air India Express. Recently, the airline's Chief Executive Campbell Wilson stated that the company is planning to establish a low-cost stronghold on domestic routes. This aligns with the broader goal of revitalising the airline by refurbishing its entire fleet by the end of 2025.

The airline has placed an order for 470 new aircraft.