AVIATION SECTOR’S SWIFT TAKE-OFF!
While India's domestic air passenger traffic has seen a remarkable 56.82% growth in February 2023 compared to the previous year, the story is quite different when it comes to international air traffic.
According to Livemint, Emirates is dominating the market by being the largest foreign carrier in India as of October to December 2022, as mentioned in a report by the Directorate General of Civil Aviation. Now, the Indian aviation sector is looking for ways to capture a slice of the international passenger traffic pie. But how will they do it? Let's find out.
So, here goes the story, the United Arab Emirates (UAE) had been pushing India to increase maximum number of seats between the two countries by 50,000 a week, which currently is about 65,000 a week. They were doing this to expand their own airline's presence here. But, India was unwilling to grant more air traffic rights to the UAE. Why?
Well, India's aviation industry is slowly progressing towards a boom. But they are facing stiff competition from foreign carriers like Emirates and Qatar Airways, which have been taking away much of India's international air traffic.
After all, India to UAE is the 5th biggest route in terms of capacity worldwide. So, how can India let this opportunity slip from its hands?
To counter this, the Indian government has been promoting its own airlines and offering non-stop flights to longhaul destinations. Civil Aviation Minister Jyotiraditya Scindia rightly said, ‘The minute you give direct connectivity to international locations from Delhi, any passenger will prefer a direct flight than going through another country's hub’. Moreover, Indian aviation sector is set to depart on its booming journey after Air India placed an order for 470 jets. As per Times of India, India’s civil aviation minister said that Air India's widebody plane order and IndiGo's plans to fly twin-aisle planes were signs that the transition had begun.
What’s Happening?
What is the Indian Aviation Space Doing?
What’s Next?
India is taking its aviation dreams to the skies with an ambitious plan to invest nearly Rs 980 billion in airport infra over the next two years. This huge amount would be invested in ordering hundreds of new planes to meet a surge in travel demand, and the pressure is on to upgrade existing facilities. But that's not all. According to a Times of India report, the Indian Civil Aviation minister predicts that air traffic in India will explode in the coming years, thanks to a booming economy, rapid urbanisation, and the growing aspirations of people.
It's an exciting time for aviation in India, and the sky is the limit!
Teji Mandi (TM Investment Technologies Pvt Ltd) is a SEBI registered Research Analyst (RA). Information in this article should not be construed as investment advice. Please visit www.tejimandi.com to know more.