Rebuilding the Air India brand is hard, says IATA

New Air India has strong promoters and stakeholders, but it’s a long way from competing with airlines like Etihad and Emirates, IATA DG Willie Walsh said. “I think it is a very strong development for Air India. The combined entity of Air India and Vistara and particularly with Singapore Airlines taking 25.1% stake in the combined entity has to be seen as a positive development," Walsh said. But he cautioned that the recently privatized national carrier has a long way to go to rebuild its brand, which he said has been diminished over the last 25 years, losing significant domestic market to other carriers. IndiGo is the largest domestic airline in India with a market share of 56.7% as of October, followed by Vistara at 9.2%, Air India at 9.1%, and AirAsia India at 7.6%. The Tata group-run Air India brand now has four airlines under its umbrella—Air India, AirAsia India, Vistara and budget international carrier Air India Express. “If you look at where Air India was historically and where it is today, it is a long way to recover the lost ground that Air India has experienced over the last 25 years. So, if you look at how the Middle East hubs have developed during that period and what has happened to Air India during that period, they have gone in opposite directions," Walsh said.<br/>