Tag Archives: Indian airlines

Willie Walsh, Director General, International Air Transport Association (IATA) expressed confidence that India would ease bilateral flying rights, especially as Indian carriers like Air India and IndiGo broadened their fleets with wide-body aircraft. He underlined the benefits of such agreements, highlighting that an increase in the rights will enable Indian airlines to offer more direct international connections.

Believing that more competition will make air travel cheaper, KR Naidu, Civil Aviation Minister, GoI, said that the govt wants more airlines in India and doesn’t want a duopoly situation. We are facilitating new airlines to come in even if they are looking to start with one or two aircraft and are ready to provide support and aid to them to start their business, he said.

According to the 2024 Cirium Fleet Forecast, the Indian passenger aircraft fleet is forecast to rise from 720 at the end of 2023 to more than 3,800 over the next 20 years. The data analytics firm for the aviation industry said that aircraft growth will drive Indian airlines’ share of Asia-Pacific’s entire passenger fleet from 8% today to 18% in 2043.

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.  

In a significant step, India airlines are bracing up for an increased flight frequency in the upcoming summer schedule, beginning from March 31 by operating 24,275 weekly domestic flights. According to the DGCA, the number of weekly departures is set to rise by 2.30 per cent compared to the ongoing winter schedule, where scheduled carriers are operating 23,732 flights.

According to a recent report by Booking.com & McKinsey, Indian airlines have ordered more than 1,000 units of aircraft, bringing the total number of planes between 1,500 and 1,700 units by 2030, to prepare for the growing appetite for travel.

The current International Air Transport Association (IATA) report announced that the domestic demand for Indian airlines increased 14.8% in June and was 1.3% higher than in June 2019. Post-COVID recovery momentum continued in June for passenger markets.

Indian airlines achieved a 36th consecutive month of double-digit domestic traffic growth as demand rose by 16 per cent, according to data released by the International Air Transport Association (IATA). The demand for domestic travel climbed 7.6 per cent this August as compared to August 2016, on pace with the 7.5 per cent growth recorded in July. Capacity rose 6.9 per cent and load factor increased 0.6 percentage points to 84.5 per cent. All markets reported demand increases with the exception of Australia. The international passenger demand for August rose 7.0 per cent compared to August 2016. All regions recorded increases, led by airlines in Latin America. Capacity climbed 6.1 per cent and load factor edged up 0.8 percentage points to 84.5 per cent. “Following the strong summer traffic season in the northern hemisphere, 2017 is on course to be another year of strong traffic growth. However, some important demand drivers are easing, particularly lower fares. As we head towards the end of the year we still expect growth to continue, but potentially at a slower pace,” said Alexandre de Juniac, Director General and CEO, IATA. The global passenger traffic data for August indicated that demand climbed 7.2 per cent as compared to August 2016. The total capacity increased by 6.3 per cent and load factor climbed 0.7 percentage points to 84.5 per cent, which was just below the record for the month set in 2015.

According to Boeing Co, Indian airlines are expected to order up to 2100 new aircraft worth $290 billion over the next 20 years. “The increasing number of passengers combined with a strong exchange rate, low fuel prices and high load factor bodes well for India’s aviation market, especially for the low-cost carriers,” Dinesh Keskar, Senior Vice President-Asia Pacific and India Sales, Boeing Commercial Airplanes reportedly said. The company expects passenger growth of about eight percent in South Asia, dominated by India, over the next 20 years, compared with the world average of about 4.7 percent. Keskar added that Boeing could increase the projection next year depending on how India’s regional connectivity scheme pans out. The company also said that it expected single-aisle planes, such as the next generation 737 and 737 Max, to account for the bulk of the new deliveries, with India likely to take 1,780 such aircraft. Boeing expects worldwide demand for 41,030 aircraft over the next 20 years, putting India’s share of the total at about 5 percent. Source: IANS