All Nippon Airways and Japan Airlines Partner with IndiGo and Air India to Meet Surging Passenger Demand and Boost Travel Between Japan and India

Tuesday, October 8, 2024

All Nippon Airways Co. (ANA) and Japan Airlines Co. (JAL) have recently teamed up with major Indian airlines in a bid to capture the increasing passenger demand between Japan and India. These partnerships aim to tap into the massive Indian market, which boasts a population of over 1.4 billion, and where passenger numbers are expected to rise significantly due to the country’s strong economic growth.

Expanding Reach through Code-Sharing Alliances

In response to this surge in demand, both ANA and JAL have entered code-sharing agreements with top Indian airlines, allowing passengers to travel seamlessly between the two countries and beyond.

Starting October 27, JAL will kick off its code-sharing partnership with IndiGo, India’s largest airline, offering routes between Haneda Airport and Delhi, as well as Narita Airport and Bengaluru. This move will allow JAL passengers to fly on IndiGo-operated flights while earning JAL mileage points, enhancing travel convenience and rewards. In addition, JAL plans to extend this code-sharing arrangement to include domestic flights within India, opening up easy transfers to key cities like Chennai, which currently lack direct connections from Japan.

Similarly, ANA launched its own code-sharing arrangement with Air India in May. This partnership covers ANA’s routes between Haneda and Delhi, Narita and Mumbai, as well as Air India’s Narita-Delhi service. Thanks to this agreement, ANA saw a 20% increase in passenger numbers between June and August, compared to the previous year.

Tsuneya Katagiri, ANA’s chief representative in India, highlighted the airline’s goal of expanding code-sharing to domestic flights within India. He said, “We want to capture the growing demand from business travelers and tourists in both countries by offering more convenient options for travel.”

Soaring Passenger Traffic Between Japan and India

Passenger traffic between Japan and India has been growing rapidly, and these airlines are expanding operations just in time to accommodate the surge.

According to the Japanese Embassy in India, the number of Japanese companies operating in India reached 4,901 in 2022—a 2.7-fold increase compared to a decade ago. With more Japanese businesses establishing a presence in India, the number of business travelers is expected to increase as well.

Tourism between the two countries is also booming. Data from the Japan National Tourism Organization shows that the number of Indian tourists visiting Japan in 2023 more than doubled compared to a decade ago, reaching 166,394 visitors. As India’s economic growth continues to raise income levels, the number of visitors is expected to rise even further.

India’s overall air traffic is also expanding at a rapid pace. In fiscal 2023 (April 2023 to March 2024), the country recorded 220 million air passengers on both domestic and international routes, surpassing pre-pandemic levels. This growth has been a key focus for Indian Prime Minister Narendra Modi, who has emphasized the importance of expanding the country’s air traffic network. The government is actively working to develop and expand existing airports while building new ones to support this surge in demand.

The Growing Competition in India’s Aviation Market

India’s aviation market is now the third largest in the world, after the United States and China. With this growth comes increased competition among airlines for air passengers, and major carriers are positioning themselves to take advantage.

IndiGo, which began as a low-cost carrier in 2006, has seen phenomenal growth over the years. Today, it operates domestic routes to more than 85 cities and international routes to over 30 cities. With a 60% market share in India’s domestic sector, IndiGo remains independent, unaligned with any international airline alliance, which gives it flexibility in its operations and partnerships.

Air India, on the other hand, has a long history, having been founded in 1932. After years of financial difficulties as a state-run company, the airline came under the control of the Tata Group, India’s largest business conglomerate, in 2022. Air India is now part of the Star Alliance, which includes ANA, and has plans to expand further, with Singapore Airlines set to invest in the carrier as part of its transformation.

These partnerships between Japanese and Indian airlines are arriving at just the right time, with more passengers than ever flying between the two nations. The strategic code-sharing agreements allow both ANA and JAL to offer their passengers more destinations and greater flexibility, ensuring that they are well-positioned to benefit from the increasing demand. With business and tourism booming, these collaborations will further strengthen the economic and cultural ties between Japan and India, setting the stage for even more growth in the future.

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