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Focus on regional connectivity schemes will pave the way for many smaller airlines to enter the market
India’s aviation sector is experiencing rapid growth, driven by increasing demand and significant transformation, especially after the pandemic. The industry has evolved into a dynamic and competitive market, making India the third-largest domestic aviation market in the world, after the USA and China. This remarkable growth in the domestic sector is fuelled by several factors, including the rise in disposable income among the middle class and infrastructure improvements, particularly the increase in the number of operational airports, which stands at 157 in 2024-a nearly 60 per cent increase from 2015. The government has announced plans to increase this number to 350-400 by 2047.
As per available statistics, domestic air passengers have more than doubled in the past decade, with Indian airlines significantly expanding their fleets. Credit rating agency ICRA reported that the country’s domestic air passenger traffic is growing at 5.1 per cent year-on-year and reached an estimated 138.9 million in May this year, which is significantly 14 per cent higher than pre-COVID levels.
Industry experts believe this tremendous transformation of air travel in India, shifting from an elite privilege to a more accessible mode of transportation for a wider demographic, is also due to younger travellers eager to explore new places and the impact of social media influencers who are inspiring many to travel and discover unusual destinations. The civil aviation ministry, airlines, and other key aviation stakeholders are supporting this growth with feasible policies, making the sector a crucial connector of people, cultures and prosperity.
“Air Travel has transitioned from ‘Exclusive’ to ‘Inclusive’ due to many reasons including the expansion of air services to smaller cities. This has also boosted business travel, tourism and trade, leading to job creation and economic growth in these regions. Increased accessibility has also improved the quality of life for residents by providing them with more opportunities for education, healthcare and employment,” says Jaideep Mirchandani, chairman of global aviation major Sky One.
He also lauded the role of the Regional Connectivity Scheme (RCS) -UDAN (Ude Desh ka Aam Nagrik) for bringing essential air travel access to previously isolated communities and boosting regional economic development. “Such schemes will not only contribute to the growth of the industry but will also see new airlines foraying into the market and strengthening the domestic sector. It will additionally provide small regional airlines with the opportunity to scale up their businesses,” adds M. Mirchandani.
According to statistics from the Civil Aviation Ministry, 583 RCS routes have commenced operations, connecting 86 airports, including 13 heliports and two water aerodromes under UDAN as of August 2024. More than 1.43 crore passengers have benefited from the scheme and over 2.8 lakh flights have operated under the UDAN scheme so far.
Mr Mirchandani says that, in addition to infrastructure development and regional connectivity, there should be a greater push for integrating sustainability efforts in aviation to maintain this growth. “Embracing greener practices, such as carbon-neutral airports and solar energy adoption, can ensure that the future of aviation in India is not only maintained intact but also reinforces its commitment to sustainability. This will contribute to long-term benefits for both the nation and the environment. We are already seeing some major steps in this regard, such as the Airports Authority of India (AAI) installing solar power plants at various airports,” he adds.
Strengthening international partnerships, in his opinion, can also help ensure the continued expansion and inclusivity of air travel in India, propelling the country to new heights in the domestic sector.
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