Tag Archives: Indian air travel

India’s aviation is undergoing a period of unmatched growth. To meet the soaring demand for Indian air travel, the sector will need to make significant investments in infrastructure and equipment. According to a report by S&P Global Ratings, Indian airlines will need to spend $150 billion to finance outstanding orders for 1,700 aircraft. Additionally, $24 billion will be required to build new airports and expand existing ones. This substantial investment is essential to accommodate the projected doubling of domestic passenger traffic to 300 million by 2030. The Indian government authorities aim to double the number of airports by 2030, creating world-class aviation hubs that can compete with established centres like Singapore, Dubai, and Doha. S&P Global Ratings believes that the timing is favourable for the aviation sector to raise capital. Rising passenger traffic, relatively cheaper domestic financing rates, and supportive government policies on foreign ownership are expected to boost funding prospects. While borrowings for airlines and airports will increase, the reliance on aircraft lessors and domestic banks could help mitigate the financial burden.  

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