Dubai: India's aviation market is soaring, attracting major airlines and becoming a center of attention in the industry. This growth is fueled by a rising middle class with more disposable income, creating a surge in domestic air travel. Industry experts predict the domestic passenger market will double to 300 million by 2030.
Moreover, India has climbed the ranks to secure the third spot among the world's largest domestic aviation markets. Analysts predict that by 2024, India will surpass the UK, cementing its position as the third-largest air passenger market globally.
Airlines flock to India
This boom is attracting international airlines. "Turkish Airlines is evaluating flights between its southern beach town of Antalya and India," said Ahmet Bolat, chairman of Turkish Airlines, at The International Air Transport Association (IATA) summit. Bolat added the route could be run through Sun Express, a carrier it operates jointly with Lufthansa, or through its Indian codeshare partner IndiGo.
IndiGo orders new planes
IndiGo, a major Indian airline, is responding to the surge in demand. "India is taking its place on the world stage,"said IndiGo CEO Pieter Elbers, talking to reporters on the sidelines of the IATA meet. Elbers' comments come as IndiGo placed record orders for hundreds of new planes and plans to initiate direct flights to six new destinations in Africa and Central Asia starting in August.
Meanwhile, Air India, under the Tata Group's ownership, aims to increase flights to Europe, West Asia, and the U.S. Additionally, India's newest airline, Akasa Air, is also gearing up to commence international operations from December this year.
Fleet expansion and infrastructure investment
India's total aircraft fleet is anticipated to reach over 1,500 by 2030. The government is heavily investing in new and upgraded airports to accommodate this massive growth. This infrastructure investment makes India an attractive market for aircraft lessors.
"The demand growth is unlike what we see in any other jurisdictions," said Firoz Tarapore,CEO at aircraft leasing company Dubai Aerospace Enterprise, in a statement to Reuters. Tarapore added, "If you say that (fare) price discipline is good and demand is on a secular uptrend then I think it's a market that we as a lessor community will want to be part of that growth."
Challenges remain
While the future looks bright, some challenges exist. International airlines like Emirates are frustrated by limited access to the Indian market. "In the end, you are compromising the strength of your economy by restricting access not only of Emirates, but all foreign carriers," said Emirates President Tim Clark at a Dubai conference.
Looking Ahead: A travel powerhouse in the making
India's large diaspora of 35 million people, mostly living in North America, Europe and South Africa, and a growing crop of adventurous, young Indian travellers with rising incomes are expected to be key drivers of future travel growth.
Analyst Brendan Sobie said, "This coming decade is India's decade for growth," adding that India could experience the kind of travel surge China witnessed in the decade prior to the COVID pandemic. With its booming economy and strategic government investments, India is poised to become a major player in the global aviation industry.