“On the domestic city pairs we operate, we want to be at least one-third of the capacity share. That is the way we are growing our network because we need a certain scale and size to compete with a large competitor. Otherwise, you are insignificant. This business is about size and scale. This size and scale are better if they can be focused on certain routes. So, it’s depth first and breadth later,” he stated.
He said that currently, only about 4 per cent of the total capacity of Air India Express falls under the “large narrow-body (A321 planes)” category. “We will actually go up to almost 30 per cent in a four to five-year period. This will give us a huge unit cost advantage (as fuel consumption per passenger will decrease),” Singh noted.