Foreign Airlines Upgrade Capacity and Aircraft on Indian Routes Amid Rising Competition

Foreign airlines are investing in the Indian market with new products and services amid increasing competition with domestic carriers Air India and IndiGo. These changes come alongside a recovery in outbound travel, which had seen a dip in the June-end quarter due to the West Asia crisis.

Malaysia Airlines and Swiss are deploying their Airbus A330neo and Airbus A350 aircraft to Delhi and Mumbai respectively during the winter season. Meanwhile, SAS Airlines from Denmark will operate its higher capacity Airbus A350 on the Mumbai route in the summer schedule. Erik Westman, Executive Vice President and Chief Revenue Officer of SAS, stated that the airline's focus for summer 2027 is on adding capacity where clear demand is visible.

Malaysia Airlines currently operates 80 weekly flights to ten Indian cities, experiencing growth across leisure, corporate, and visiting friends and relatives travel segments. The airline flies the A330neo featuring business class suites with privacy doors and a new entertainment system to various international destinations. From mid-January, it will introduce the aircraft on one of its two Delhi flights, offering a consistent product experience for passengers traveling between India, Australia, and New Zealand.

Swiss, part of the Lufthansa Group, launched its maiden service between Zurich and Bengaluru on October 27. From December 15, the airline will deploy an Airbus A350 aircraft on the Mumbai route, offering a redesigned business class cabin with increased comfort and privacy. The aircraft's more powerful engines are expected to reduce travel time between Mumbai and Zurich by around 25 minutes to 8 hours and 10 minutes. Jens Fehlinger, Chief Executive Officer of Swiss, noted that India is a market with enormous potential and that Bengaluru serves as a leading technology and innovation hub.

Domestic carriers are also updating their offerings. Air India has begun deploying new and retrofitted Boeing 787 aircraft on various routes in Asia, Europe, and Toronto. Over the next two months, the airline will deploy these products on the Bengaluru-London and Mumbai-Tokyo routes. IndiGo has similarly increased its focus on IndiGoStretch, its business class product. Willie Walsh, Chief Executive Officer of IndiGo, remarked in a post-second-quarter conference call that the airline had previously been hesitant about promoting the premium product, but it has received strong encouragement as more people experience it.

Union Tourism Ministry data indicates that while the first two months of calendar year 2026 saw growth in outbound travel, March and April experienced a decline of over 20 percent in departures of Indian nationals for leisure, business, education, pilgrimage, and diaspora visits. Traffic volume has since recovered, showing a negative growth of 2 to 4 percent between June and August. Thomas Cook India reported a 30 percent growth in forward bookings for outbound leisure trips in a post-second-quarter conference call, pointing to positive market momentum.

According to Rajiv Mehra, General Secretary of the Federation of Associations in Indian Tourism & Hospitality, traditional markets like Thailand, Singapore, Dubai, and western Europe are seeing growth, while newer destinations such as Armenia, Kazakhstan, and Uzbekistan are gaining popularity due to proximity and cost-effective flight options.

"The increased deployment of modern aircraft and upgraded services by foreign carriers on Indian routes highlights the strategic importance of the Indian aviation market. As outbound travel recovers, both international and domestic airlines like Air India and IndiGo are actively competing for market share by enhancing premium offerings and network capacity. This competition ultimately benefits consumers with better connectivity and product choices across key international routes." — Dr. Shishir Gupta, Founder & CEO, StartupLanes