Vistara-Air India merger to strengthen aviation sector

India’s aviation market is may be moving towards a duopoly following the merger of two full-service carriers Air India and Vistara, consultancy and research firm CAPA India opined on Tuesday. The merger, CAPA said, would strengthen the sector.

“The competitive dynamics in India are moving towards a two-pillar system around the Air India Group and IndiGo. The two carriers combined are in due course expected to achieve a domestic market share of 75-80%,” CAPA India said in a statement.