ON THE CUSP OF GROWTH

The growth of regional airlines in India will increase the market for regional jetliners.

- MIKE RAJKUMAR

The market for regional jets is growing globally due to the increased demand for air travel. The growth of regional air travel in India has been slower to take off due to the high cost environment for commercial aviation which prevails in the country. However, it is quite certain that as the civil aviation market in India continues to grow, there could emerge a sizeable opportunity for sales of regional jets. Regional jets not only offer more efficient connectivity to passengers but also delivers a sizeable competitive economic advantage as compared to using larger singleaisle jetliners such as the Airbus A320neo and Boeing 737 MAX aircraft.

According to a market report released in July 2023 by Allied Market Research, the global regional jet market which was valued at US$5.7 billion in 2022, is projected to reach US$10.6 billion by 2032, growing at a compounded annual growth rate (CAGR) of 6.4 percent from 2023 to 2032. As per the report, the, 80-125 seat regional jet segment is projected to manifest the highest CAGR of 8.3 percent from 2023 to 2032. The 80-125 seat regional jet segment is likely to grow in India as well, in the coming years.

Regional Carrier Expands

One of the most successful Indian regional carriers, Star Air announced an ambitious expansion plan in early November. Capt. Simran S Tiwana, CEO of Star Air, spoke about the airline’s long-term growth strategy, stating, “The addition of these new Embraer E175 aircraft marks a pivotal step in our journey. As we expand our fleet to 25 aircraft, we reaffirm our commitment to reaching more underserved markets and setting new standards in air travel. Each milestone in this expansion brings us closer to connecting more of Real India, offering fast, efficient, and high-quality flying experiences for our passengers."