The article discusses the concept of first-mover advantage in the aviation industry, where early market entrants are expected to gain a lasting advantage through brand recognition, customer loyalty, and demand establishment. However, in the Indian aviation market, this theory is challenged. According to aviation expert Ravreet Singh, financial strength and strategic planning often outweigh the timing of market entry.
The article cites the example of the Amritsar-Hyderabad route, where Air India Express (IX) launched daily flights in November 2023, followed by IndiGo Airlines (6E) in April 2024. Despite being the first to enter the market, Air India Express was ultimately forced to abandon the route due to mounting losses, citing IndiGo’s aggressive pricing and capacity expansion. IndiGo, on the other hand, upgraded its fleet from A320neo to A321neo in April 2025, solidifying its position on the route.
The article highlights that Air India Express’s failure to sustain its position was due to its limited financial resources, whereas IndiGo’s superior cash reserves enabled it to endure short-term losses. IndiGo’s extensive network in Hyderabad also provided crucial feeder traffic connections, increasing demand sustainability. In contrast, Air India Express operated solely on point-to-point traffic, limiting its ability to withstand competitive pressure.
The article concludes that timing is not always everything in the aviation industry. Accurate market assessment and strategic planning are essential, as even well-funded carriers can face continued losses in fundamentally weak markets. Airlines that combine financial backing, network synergies, and strategic market timing outperform those that rely solely on early-mover positioning. The case study of IndiGo and Air India Express demonstrates that strategic patience and financial strength are key to success in the competitive aviation industry.