Why Global Airlines Are Flocking To India’s Surging Travel Market?

Published on June 14, 2024

By: Rana Pratap

Global airlines are surging to India’s thriving travel market, driven by rapid growth, a vast population, strategic location, and supportive government initiatives.

Global airlines are launching new routes and expanding flight schedules in India, positioning the country as a hot travel market expected to flourish over the next decade, according to airline officials and industry analysts.

India, among the fastest-growing aviation markets, was a focal point at the recent global gathering of airline CEOs and aircraft leasing companies in Dubai, driven by a surge in both domestic and international air travel.

Government data indicates that India’s domestic air travel market could double to 300 million passengers from a record 152 million in 2023. International traffic is poised to grow even faster, with estimates from aviation research group CA India projecting it to reach 160 million passengers by 2030, up from 64 million last year.

In response to this growth, Turkish Airlines is considering flights between its southern beach town of Antalya and India, stated Chairman Ahmet Bolat at the International Air Transport Association summit. The airline may operate the route through Sun Express, a joint venture with Lufthansa, or via its Indian codeshare partner IndiGo.

IndiGo, India’s largest airline, has placed a firm order for 30 Airbus A350-900 aircraft to expand its international network to long-haul destinations. In June, IndiGo further announced an order for 500 narrow-body planes from Airbus.

In February last year, Tata Group-owned Air India ordered 470 planes—250 from Airbus and 220 from Boeing. Air India has purchased 190 Boeing 737 MAX, 20 Boeing 787 Dreamliner, and 10 Boeing 777X airplanes, with options for 50 additional 737 MAXs and 20 787-9. Since then, Akasa Air, Air India, and IndiGo together have placed orders for 1,120 planes.

Hungary-based budget carrier Wizz Air aims to commence its first flights to India next year, CEO Jozsef Varadi announced at a CA India-organized aviation conference in New Delhi.

To build its fleet, Akasa Air has placed an order of 226 Boeing 737 MAX airplanes. SpiceJet has also placed orders for several aircraft, including 155 new Boeing 737 MAX 8, 9, and 10 airplanes, with purchase rights for 50 additional airplanes.

The positive outlook has spurred other major airlines to take interest. Etihad Airlines, Emirates Airlines, Flynas, and Riyadh Air are also eyeing expansion in the Indian market, looking to capitalize on the increasing demand for air travel.

India’s aircraft fleet is expected to exceed 1,500 by 2030, up from around 700 currently, with most planes financed through sale and leaseback deals, making the country highly attractive to aircraft lessors. To support this expansion, the government is investing approximately $12 billion in new and upgraded airports.

Despite the excitement, some major international airlines, like Emirates and Turkish Airlines, are frustrated by limited market access. They seek increased flight capacity rights in India, but the Indian government prioritizes domestic carriers.

India’s travel boom is largely fueled by its extensive diaspora of 35 million people, mostly living in North America, Europe, and South Africa, along with a growing number of young, adventurous Indian travelers with rising incomes.