In a move that underscores India's burgeoning position in the global aviation landscape, airlines worldwide are ramping up their operations, anticipating a substantial growth phase in Indian air travel over the next decade. The recent convergence of industry leaders in Dubai, featuring key global airline CEOs and aircraft leasing companies, placed India at the forefront of strategic planning.
According to government data, India's domestic air travel market is predicted to double to 300 million passengers from a record 152 million in 2023. Simultaneously, international passenger traffic is set to more than double, reaching 160 million by 2030 from the current 64 million, based on estimates from the aviation research group CAPA India.
One of the most assertive players in this anticipated boom is Turkish Airlines. The carrier is evaluating new routes between Antalya, a southern beach destination in Turkey, and India. The proposed operations could be executed through Sun Express, which Turkish Airlines co-owns with Lufthansa, or via its Indian codeshare partner, IndiGo. Hungarian budget airline Wizz Air is also on track to launch its inaugural flights to India next year, projected by CEO Jozsef Varadi during an aviation summit in New Delhi.
As a testament to the robust outlook, India's leading airlines, budget carrier IndiGo and Tata Group's Air India, have undertaken record aircraft orders. The nation's total fleet is expected to surge to 1,500 aircraft by 2030, from the current fleet of around 700. Much of this expansion is facilitated by sale and leaseback agreements, presenting a lucrative proposition for aircraft lessors.
Firoz Tarapore, CEO of aircraft leasing firm Dubai Aerospace Enterprise, highlighted the exceptional demand growth in India, noting, "The demand growth is unlike what we see in any other jurisdictions." Tarapore underlined the attractiveness of the Indian market for lessors given its consistent uptick in demand and stable fare pricing.
In parallel, the Indian government is aligning its infrastructure with this growth trajectory by investing approximately $12 billion in new and upgraded airport facilities. Pieter Elbers, CEO of IndiGo, pointed out India's strategic ascension on the global stage, emphasizing that enhanced domestic airline capabilities are a key priority for policymakers.
Nonetheless, this rapid expansion has not been without contention. Major international airlines like Emirates and Turkish Airlines have expressed dissatisfaction over restricted access to the Indian market. Emirates President Tim Clark argued that such limitations might hamper the broader economic benefits of foreign carrier engagement.
An essential driver of this travel market surge includes India's vast diaspora, which numbers around 35 million across North America, Europe, and South Africa. Additionally, a younger generation of affluent Indian travelers is expected to significantly contribute to this growth wave.
Independent aviation analyst Brendan Sobie remarked, "This coming decade is India's decade for growth," predicting a trajectory akin to China's aviation boom preceding the COVID-19 pandemic.
