FLIGHT PATH

THE INDIAN AVIATION SECTOR IS PASSING THROUGH INTERESTING TIMES. WITH 600 NEW AIRCRAFT EXPECTED TO BE ADDED BY 2030, KEY AIRPORTS OF NAVI MUMBAI AND NOIDA SOON TO START OPERATIONS, AND MORE TIER II AND III CITIES TO BE ON THE COUNTRY'S AVIATION MAP, THERE ARE ENOUGH TAILWINDS FOR GROWTH. YET, THE TWIN HEADWINDS OF SUPPLY CHAIN CHALLENGES AND HIGH FUEL PRICES CONTINUE TO IMPACT AIRLINES' PROFITABILITY

- RICHA SHARMA

A MASSIVE GROWTH STORY is unfolding in the Indian aviation sector, riding on peoples' aspirations to fly. The order book of Indian carriers is now more than 2X the size of the current fleet, the highest ratio of any major market.

With an order book of over 1,750 new aircraft in the narrow and wide-body segments, Indian aviation players have been on an aircraft shopping spree from Airbus and Boeing. The current fleet stands around 800 and another 600 are expected to be added by 2030.

Two major players—IndiGo and Air India—on average, are adding one aircraft every week. The trend is expected to continue in 2025 and increase from 2026 onwards. Indian carriers are expanding their presence in the international sectors, too, with wide-body aircraft to cater to long-haul and ultra-long-haul routes.

Infrastructure is also expanding with newer airports being made, improved in-flight facilities, and smaller cities making it to the country's aviation map. The number of airports has almost doubled to 157 in the past decade and the aim is to increase it 2.5X by 2047.

Besides, two major airports—Navi Mumbai and Noida International—once operational, are expected to ease the traffic burden in Mumbai and Delhi, while also providing better connectivity options.

What's driving the sector?

Rising travel demand and increased capacity deployment have helped the domestic air passenger traffic in India grow at 6-10%, according to various agencies.

“The growth is attributed to various factors such as rising incomes, growing fleet, and expanding network,” Pushan Sharma, Director-Research of consulting firm CRISIL Market Intelligence & Analytics, tells Business Today.

“With the latest technology, fuel efficiency, and comfort features, the new aircraft will modernise the Indian aviation industry, reducing operating costs and emissions while enhancing the passenger experience,” says Sharma.