Focus on regional connectivity schemes will pave the way for many smaller airlines to enter the market
India’s aviation industry is expanding quickly due to rising demand and substantial change, particularly in the wake of the epidemic. India is now the third-largest domestic aviation market in the world, behind the United States and China, as a result of the industry’s evolution into a vibrant and competitive sector. The middle class’s increased disposable income and infrastructure improvements—particularly the rise in the number of operational airports, which stands at 157 in 2024—a nearly 60% increase from 2015—are the main drivers of this remarkable growth in the domestic sector.
Based on current data, domestic traveler numbers have increased by over 100% during the last ten years, largely due to considerable fleet expansions by Indian airlines. According to credit rating agency ICRA, domestic air passenger traffic in the nation increased by 5.1% annually in May of this year to an anticipated 138.9 million, a remarkable 14% increase above pre-COVID levels.
Industry experts claim that the remarkable transformation of air travel in India—from an elite privilege to a more accessible mode of transportation for a wider demographic—is also due to younger travelers who are eager to see new places and the influence of social media influencers who encourage many to travel and discover unusual destinations. Workable policies from the civil aviation ministry, airlines, and other significant aviation players are supporting this growth, which makes the sector a vital link between people, cultures, and prosperity.
“A number of factors, notably the growth of air services to smaller cities, have contributed to the shift in the category of air travel from “Exclusive” to “Inclusive.” Additionally, this has increased trade, tourism, and business travel, which has helped these areas’ economies flourish and create jobs. By giving citizens more options for healthcare, work, and education, increased accessibility has also improved their quality of life, according to Jaideep Mirchandani, chairman of Sky One, a large global aviation company.
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.
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.
