Regional Demand Reshapes India's Fleet

India's regional aviation market is expanding rapidly, driven by strong Tier-2 and Tier-3 demand and a surge in new routes and airports.

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This growth is reshaping fleet needs, with regional sectors expected to shift toward 90-114-seat aircraft by 2030. ADITY SHEKHAR, Regional Vice President, Sales, Embraer, dissects the issues.

India's regional network is still dominated by turboprops on tier-2 and tier-3 routes, while Embraer has a much stronger role in regional connectivity in markets like the US. What have been the main barriers to wider E-Jet deployment in India so far – economics, regulation, leasing, or airline strategy?

We believe it's a matter of evolution. India's regional aviation sector is experiencing rapid growth, particularly in Tier 2 and Tier 3 cities. While Tier 1 routes are growing at a relatively stable 0.2 per cent CAGR, regional routes are growing at 7 per cent. So far, under the government's UDAN scheme, we've seen 625+ routes operationalised, and the total number of airports doubled to 159 (in 2024). As a result, we have also seen the growth of regional airlines like Star Air, amongst others. The new UDAN scheme aims to add 120 new airports and enable travel for more than 4 crore passengers.

This growth in regional demand will necessitate a reevaluation of current aircraft capacity. By 2027, we expect that regional routes will require 90-seater aircraft, and by 2030, that demand will increase to 114-seaters. That is where Embraer's E175 regional jet, E190-E2 and E195-E2 small narrowbody jets can come in and serve those categories. The E175 is the backbone of regional connectivity in the US and offers efficiency, reliability and performance. The E-Jets E2, which is the world's quietest and most fuel-efficient aircraft, offers enhanced performance, efficiency and the capability to operate from challenging airports with shorter runways or low pavement strength.

With IndiGo and Air India placing record narrow-body orders, is Embraer exploring partnerships or fleet opportunities with Indian carriers?