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Indian domestic market facing scrutiny over recent fare

hikes

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Air India Express to complete retrofitting jets with

economy

seats by the beginning of fiscal year 2027

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Plans to deepen partnership with international low-cost

carriers

By Abhijith Ganapavaram

NEW DELHI, March 28 (Reuters) - The head of Air India

Express said on Friday that the increased capacity Indian

carriers expect to add in coming years will outpace demand,

which may potentially bring down ticket prices, as the airline

industry comes under criticism for rising fares.

India's domestic air travel sector is among the fastest

growing in the world, but just two carriers - IndiGo and Air

India, parent of Air India Express - control about 90% of the

market.

Criticism around rising fares has been growing. Earlier

this year, India's aviation regulator, the Directorate General

of Civil Aviation (DGCA), was forced to step in and ask airlines

to cut fares after prices soared during the Hindu Maha Kumbh

festival.

"The capacity that we expect coming into the market, not

just over the next year, but over the next several years, in all

probability, will stay ahead of the demand," Managing Director

Aloke Singh told reporters, when asked about air fare concerns.

His comments come days after an Indian parliament committee

recommended giving the DGCA the power to regulate air fares,

currently based on demand and supply considerations.

Indian airlines are expected to add 96 aircraft to their

fleet this calendar year, according to data from consultancy

Cirium Ascend, slightly less than in the previous two years.

Express will add about 15 aircraft to its fleet in the next

fiscal year, which begins on April 1, with some procured from

Air India, Singh said. It is also working on a "long term" fleet

plan, he said, without elaborating.

Capacity should rise by about 45% next year, enabling the

airline to carry an average of 2.5 million passengers per month,

up from 2 million passengers the previous year, Singh said.

Express added about 37 planes last year, consisting of

Boeing's ( BA ) 737 MAX jets and Airbus A320neo and

A320ceo aircraft.

The company plans to complete the addition of economy class

seats to its aircraft by the beginning of fiscal year 2027,

Singh said.

The carrier is also looking to deepen arrangements with

international low-cost airlines Scoot, Jazeera Airways and Air

Arabia, among others, allowing passengers more options.