Category Archives: Aviation

ICRA’s report on India’s aviation industry says, April 2024 saw 132.8 lakh domestic air passengers, which was 0.6 per cent lower than 133.7 lakh in March 2024. However, it grew by 3 per cent on a y-o-y basis and was higher by 21 per cent than pre-COVID levels. The airlines’ capacity deployment in April 2024 was higher than April 2023 by 2 per cent.

Air India, India’s leading global airline, and Merlin Entertainments, a global leader in location-based, family entertainment, have entered a global partnership for Air India’s Flying Returns (FR) loyalty programme. Effective 08 May 2024, Flying Returns members will earn Reward Points when they buy tickets to Merlin Entertainments’ Madame Tussauds across nine locations around the world. Two more Madame Tussauds locations will be added for the offering in the coming weeks, thus covering all worldwide locations of the popular tourist attraction. The partnership is powered by GlobalTix, Asia’s leading travel technology company, which enables the booking transactions. Air India’s Flying Returns members can earn up to 16 FR points per INR 100/USD 1.2 spent across participating Madame Tussauds locations. As part of an exclusive launch offer valid on bookings made until 25 June 2024 and visits completed until 30 June 2024, Flying Returns members can earn double Reward Points at five Madame Tussauds locations, namely Singapore, Bangkok, Dubai, London and New York. During the limited period, Flying Returns members will also get a complimentary entry for one child (2-11 years) accompanied by two adults at select Madame Tussauds locations. Air India and Merlin Entertainments signed a Memorandum of Understanding (MoU) at a ceremonial event held at the iconic Madame Tussauds Dubai during the on-going Arabian Travel Market 2024. Flying Returns members can earn FR Reward Points on tickets to the participating Madame Tussauds locations by purchasing their tickets here: https://airindia.tickete.co/partner/madame-tussauds-flying-returns-air-india/ Dominique Sidley, Global Trade Strategy Director, Merlin Entertainments, stated: “We at Merlin Entertainments are excited about this partnership with India’s leading airline, Air India, and to welcoming the ‘Flying Returns’ members to our incredible attractions across the globe. India is a …

In a key development, CRISIL Ratings report revealed that Indian airlines are set to capture nearly 50 per cent of international passenger traffic by FY28 from 43 per cent in FY24. Along with that, the growth in domestic traffic is expected at 10-11 per cent over the same period.  India’s international passenger traffic grew to around 70 million in FY24, from 10 million in FY21.

As per International Air Transport Association (IATA), in March 2024, there was 13.8 per cent increase in global passenger demand vis-a-vis the same month in 2023. International passenger demand saw a rise of 18.9 per cent compared to March 2023, while domestic demand rose to 6.6 per cent, showcasing a positive landscape for aviation industry.

As per HVS Anarock, total air traffic in India reached 370 million in 2023, a 26 per cent increase over 2022. This includes 303 million domestic air traffic, and 66.6 million international air traffic, and 9.2 million foreign tourist arrivals. Fueled by favorable demographics, and increased investments both leisure and business travel increased in the country.  

Demand for travel is strong, says Willie Walsh, IATA’s Director General, adding, “That means making urgent progress to resolve supply chain issues and for airports and air traffic management to be fully staffed and operating at maximum efficiency. While airlines are prepared for customer care and assistance when operational issues arise, they are fed-up of bearing the cost when delays and cancellations are the result of poor preparation in other parts of the value chain.”

On 1 May, German taxes on flying increased by 19% to between EUR 15.53 and EUR 70.83 per passenger, depending on the route. The tax will make Germany less competitive in key economic areas such as exports, tourism, and jobs. It will further affect Germany’s air transport recovery from the pandemic, which is one of the slowest in the EU. Germany’s international passenger numbers, for example, are still 20% below pre-pandemic levels.

According to CAPA India, Delhi Airport is the largest airport in India and one of the ten-largest in the world, handling 74mn passengers in FY2024. The airport has the potential to become a major hub given its extensive terminal and runway infrastructure, well-developed airport hotel capacity, and favourable geographic location. Delhi is an asset of GMR Airports, the longest established and largest private operator in the country by passengers handled, whose portfolio includes four operating airports and one under development in India, as well as overseas projects in Greece, Indonesia and the Philippines.

As per CAPA India, almost 250 narrowbody aircraft are likely to be deployed on routes up to 5 to 7 hours range from India. This would be 2.5 times the current deployment of aircraft. This expansion will create significant network deployment and strategic challenges for airlines to be able to find sufficient markets for such capacity.

Ankit Hakhu, Director, CRISIL Ratings, said, “Taking off from the strong base of last fiscal, passenger traffic growth will continue its momentum in fiscal 2025 and rise more than 10% to over 415 million. Continuing economic growth, opening of more airports and improving regional connectivity are providing the tailwinds necessary for domestic traffic growth.”