Soaring Skies: Global Airlines Flock to India’s Travel Boom

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Global airlines are increasingly launching new flights and expanding their schedules in India, betting on the South Asian giant’s potential to become one of the hottest travel markets in the next decade. This optimism was evident at the industry’s largest gathering of global airline CEOs and aircraft leasing companies in Dubai last week, where India was a focal point, driven by surging domestic and international air travel.

India is among the fastest-growing major aviation markets. Government data projects that the domestic air travel market, which reached a record 152 million passengers in 2023, is expected to double to 300 million passengers. Meanwhile, international traffic is set to grow even faster, with estimates from aviation research group CAPA India suggesting it will reach 160 million passengers by 2030, up from 64 million last year.

To capitalize on this growth, Turkish Airlines is considering new flights between its southern beach town of Antalya and India. According to Chairman Ahmet Bolat at the International Air Transport Association (IATA) summit, these routes may be operated through Sun Express, a carrier jointly run with Lufthansa, or via its Indian codeshare partner IndiGo.

Similarly, Hungary-based budget carrier Wizz Air is aiming to launch its first flights to India next year, as stated by CEO Jozsef Varadi at a separate aviation conference in New Delhi, organized by CAPA India.

India’s two biggest airlines, budget carrier IndiGo and Tata Group’s Air India, are responding to this optimistic outlook by placing record orders for hundreds of new planes. These new aircraft, set for delivery over the next decade, will significantly bolster the country’s fleet.

India’s total aircraft fleet is projected to more than double to over 1,500 by 2030, up from around 700 currently. This expansion is primarily financed through sale and leaseback deals, making the Indian market highly attractive to aircraft lessors. Firoz Tarapore, CEO of Dubai Aerospace Enterprise, noted the unparalleled demand growth in India, expressing strong interest from the lessor community in participating in this market.

The Indian government is supporting this aviation boom with an investment of about $12 billion in new and upgraded airports. IndiGo CEO Pieter Elbers, who relocated to India two years ago from his previous role as CEO of Dutch carrier KLM, highlighted India’s burgeoning presence on the world stage at the IATA meeting.

However, some international airlines are experiencing frustration due to limited market access. Emirates and Turkish Airlines have expressed a desire for more flight capacity rights in India, but Prime Minister Narendra Modi’s government is prioritizing domestic carriers. Emirates President Tim Clark warned that restricting access to foreign carriers could compromise economic strength.

Much of India’s travel growth is expected to come from its extensive diaspora of 35 million people, primarily residing in North America, Europe, and South Africa. Additionally, a growing number of young, adventurous Indian travelers with rising incomes are contributing to the market expansion. Independent aviation analyst Brendan Sobie emphasized that the coming decade is poised to be India’s period of significant growth, potentially mirroring the travel surge China experienced in the decade prior to the COVID pandemic.

In conclusion, the Indian aviation market is on the brink of substantial growth, driven by both domestic and international demand. With significant investments in infrastructure and ambitious expansion plans by airlines, India is set to become a key player in the global aviation industry.