The aviation sector, fact being told, is among the fastest growing, constantly buzzing and deeply competitive business landscapes worldwide.
The rate at which travel in the post-pandemic age has increased-and increased manifold- offers unbridled hope and at the same time, tons of work for the global aviation industry that by 2030, is expected to be at USD $ 1631 billion (as per Zion Market Research).
And somewhere here lies a massive advantage for the airlines based in India, a country popularly considered among the tiger economies of the world.
Apparently, there is buzzing news that will be considered with great interest especially where Indian airlines are concerned. So the big question is- what is this development and why has it got the Indian Aviation sector interested?
Here is what you need to know:
It turns out that according to a survey and report carried out and furnished by CRISIL, as much as half of the nation’s international air passenger traffic will be handled or catered by Indian airlines.
And this pertains to the financial year 2027-28.
So, fundamentally speaking, the share of Indian airlines in handling international passenger traffic- which includes travel originating and terminating as well as traffic transitioning across the country- surging at a notable rate.
These notable improvements are tied to a string of factors, most notably-
A) Additional aircrafts being deployed by Indian airlines
B) The adoption of new routes by Indian airlines where international travel is concerned
Having said that, CRISIL’s report also highlighted the fact that the business profiles of several Indian carries is bound to grow big and become impressive with such a development due to their rising share in international traffic.
It ought to be noted- international traffic yields more profit than domestic travel.
As a matter of fact, India’s international passenger traffic has undergone a sea change from the pandemic-hit times to the present day.
Not an exaggeration.
Here’s a fact. In the fiscal year 2021, India’s passenger traffic was in its desperate and worst-hit times, being a paltry figure of 10 million. Today, circa fiscal year 2024, with passenger traffic originating from and going out of the country surging, the figure stands at 70 million.
A major insight from CRISIL’s report happens to share the following-
“A noticeable shift in spending patterns has emerged after the pandemic, as evident in the increasing inclination of Indians towards international leisure travel!”
Today, the landscape of Indian airlines has undergone considerable change which is adding to their overall popularity.
Not only do several air carriers have codeshare agreements with several international partners (for offering onward connectivity), several names among the Indian airlines are aiming to deploy an added fleet for both- medium and long-haul travel.
Indian airlines are noted for having a superior domestic connectivity than their overseas counterparts, which if you think about it, only serve a select pool of Indian cities and not every length and breadth of the country!
In contemporary times, the domestic travel has increased manifold with several Indian air carries having regular Tier-2 and Tier-3 connectivity, which augurs well for the overall growth of the aviation space in the country.
Among the other key findings from CRISIL that tends to paint an optimistic picture around the Aviation sector of India is this-
The natural geographical location of India also bodes well for its connectivity to other regions. The air connections between Africa and Middle East also tend to fall well with respect to India’s standing on the global map. All of which indicate that the country is positioned well to potentially become a global aviation hub as far international travel is concerned.
The network expansion strategy coupled with a planned fleet addition by different Air carriers in the country are collectively pointing to a bright spot previously less evidenced in the Indian Aviation space.
Indeed, these are interesting and promising times for the India.
