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Air India, AirAsia to carry each other's passengers in case of flight disruptions

The deal between the two Tata-owned airlines will be valid for two years

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Tata group airlines Air India and AirAsia India have signed an agreement enabling them to carry each other's passengers in case of disruption of flights. The arrangement, valid for two years, will enable the provision of alternative first available flights to minimise inconvenience to passengers.

According to the 'interline considerations on irregular operations' (IROPs) agreement, the decision of the airport manager on accepting the airline would be final regarding the availability of seats.

News reports claim that the coming days will see greater synergy between Air India, AirAsia India and AI Express. The Tatas also have a 51 per cent stake in Vistara, which is a joint venture with Singapore Airlines, which has the remaining 49 per cent.

The total fleet of the four carriers – Air India, Air India Express, AirAsia and Vistara – add up to 233 aircraft.

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"The Tatas now have multiple airlines, with each competing for market share," Capt GR Gopinath, founder of Air Deccan, was quoted by a newspaper. "Each company has a different work ethos, different models of aircraft, three setups of engineering, logistics, inventory, operations, marketing and finance, and several CEOs and boards. You cannot create anything more complex or costly."

Kapil Kaul, chief executive, Asia Pacific Aviation, however, has a more positive view of the emergence of the Tatas on the aviation front. "Given that the Tatas have a very long-term view and patient capital, most of the challenges can be overcome, but people-related and expected hyper-competitive environments remain the most critical one."

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