Future of Airlines in India - India Report

29.10.2024 - 06:05 / skift.com / Narendra Modi / Pieter Elbers / Pedro Sanchez / Bulbul Dhawan

The Indian aviation sector is poised for significant growth, and civil aviation minister Kinjarapu Rammohan Naidu believes the country might need 4,000 additional planes over the next two decades to cater to the demand. Currently, Indian airlines are operating around 800 planes and have an order book of over 1,200 aircraft. 

The minister, while speaking at Airbus’ India and South Asia Headquarters, added that in the next 20 years, 200 more airports will be developed in the country. During the event, civil aviation secretary Vumlunmang Vualnam said air-passenger traffic in India is expected to double in the next five years. Last year, India recorded 220 million air passengers. 

Made In India Planes: The minister said the government’s long-term plans for the aviation sector include efforts to design and manufacture planes in India. On Monday, Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated the TATA Aircraft Complex in Vadodara to manufacture C-295 aircraft. 

Modi said that this will make way for a Made in India civil aircraft and that the factory will play a key role in the design and manufacture of civil aircraft to meet the requirements of Indian travelers. 

India has the third-largest domestic aviation market in the world, according to aviation analytics firm OAG. The domestic airline capacity in India in April 2024 was about 15.6 million, up from 8 million in April 2014. The firm noted that over the past 10 years, the Indian domestic market grew at an annual rate of 6.9% and was one of the fastest-growing markets in the world. 

Over the past few months, two new airlines have received regulatory approvals to commence operations as more players are seeking to enter the booming market. Last week, IndiGo CEO Pieter Elbers noted that the sector is projected to grow at a fast pace, and that infrastructure on the ground and in the air need to keep up. He was optimistic about the growth of the sector despite the airline posting a quarterly loss for the first time in two years. 

The Indian government is planning to invest INR 920 billion ($11 billion) in airport infrastructure for construction of new airports and expansion of existing ones. It is looking to have 200 operational airports by 2025, up from 157 airports at present. 

Hilton has signed its first property in Udaipur, Rajasthan. The 118-room hotel will be operated under the Hilton Hotels & Resorts brand and is expected to open in 2026. 

The chain is currently operating two hotels in Rajasthan – Hilton Jaipur and DoubleTree by Hilton Jaipur Amer. Due to its position as a premier wedding destination in India, Rajasthan has been the focus of several major hotel chains for some time, including Marriott