IndiGo, which operates on the no-frills philosophy, has perfected its model of keeping costs low since 2006. The airline is one of the biggest customers of the A320/320neo family, with 1,340 of these ordered and over 350 in operation.
16.04.2024 - 10:49 / skift.com / Jyotiraditya Scindia / Air India / Bulbul Dhawan
The domestic air passenger traffic in India during the 2023-24 financial year is estimated to stand at 154 million, according to credit rating agency ICRA. This figure surpasses the pre-Covid figure of 142 million domestic air passengers recorded in the 2019-20 financial year. The agency further stated that domestic air passenger traffic witnessed a 13% increase from last year.
“ICRA’s outlook on the Indian aviation industry is stable, amid the continued recovery in domestic and international air passenger traffic, and relatively stable cost environment and expectations of the trend continuing in fiscal year 2024-25,” the agency said.
Growth of Indian aviation sector: The aviation industry in India is undergoing changes as the market is underserved. Indian aviation minister Jyotiraditya Scindia earlier this year said that the country is expected to be one of the least penetrated of the 20 largest markets by 2030 despite its rapid growth.
The Airports Authority of India (AAI) is planning to invest INR 300 billion ($3.6 billion) over the next five years to build and revamp the airport infrastructure in the country. Meanwhile, the Adani Group is looking to infuse INR 600 billion ($7.25 billion) in its airport business over the next five to 10 years to expand seven of the existing airports in its portfolio.
Recently, terminal buildings at 12 airports were inaugurated across the country, and with it, the annual passenger capacity at Indian airports is set to increase by 60 million.
Tourism Australia has been witnessing a surge in Indian arrivals from the business and meetings, incentives, conferences and exhibitions (MICE) events. Nishant Kashikar, country manager – India and Gulf, Tourism Australia said, “Our Bid Fund Program, supporting international business event bids, has already secured five significant events from India, worth over AUD$26 million (nearly $17 million).”
Tourism Australia partnered with travel management company FCM Meetings and Events India and Singapore Airlines to network with Indian companies.
In 2023, business travel spending in India increased by nearly 25% year-on-year, while the projected growth for 2024 is 18%.
Low-cost airline Akasa Air has announced Prayagraj as the latest destination added to its network. The airline will fly to the destination daily from Mumbai starting May 25 this year, it said in a statement. This is the 22nd destination in Akasa Air’s network, and is the fourth city in Uttar Pradesh that the airline will operate in.
Akasa Air commenced its operations in August 2022, and over the past 20 months, it has expanded its network to 22 cities. It also commenced its international operations in March this year, flying between Mumbai and Doha in Qatar.
IndiGo, which operates on the no-frills philosophy, has perfected its model of keeping costs low since 2006. The airline is one of the biggest customers of the A320/320neo family, with 1,340 of these ordered and over 350 in operation.
Indian budget carrier IndiGo has placed its first-ever order for widebody aircraft, with an order of 30 Airbus A350-900 jets. The move is expected to help expand IndiGo’s international network to long-haul destinations.
India recorded a cruise tourism footfall of 470,000 in the 2023-24 financial year – its highest ever. Domestic tourists accounted for nearly 80% of this, as international cruise tourism in India has yet to revive to pre-Covid levels.
More than 81% of the Indian GenZs – aged between 18 and 25 years – start planning their first international trips as soon as they secure a job or receive their first paycheck, online travel agency Skyscanner has revealed in a new report. Indians are historically known to start saving as soon as they are employed and have been conservative with their travel spends. These findings highlight how the youth, especially the growing middle class, is changing the tourism landscape in the country.
Indian travelers have an increased interest in weekend getaways and spiritual tourism, according to online travel agency MakeMyTrip’s first-ever travel trends report. Searches for destinations with or around religious spots increased by 97% in the last two years, the platform stated in the report, which was released on Monday.
India is becoming a convenient hub for travel between Southeast Asia and the Middle East, IndiGo Chairman V Sumantran said during his address at a college in Chennai. He also cited the example of several airlines carrying passengers from places such as Bangkok to Jeddah or Dubai by connecting through Indian cities.
The Tourism Authority of Thailand on Thursday hosted a group of more than 8,000 incentive visitors from India. The delegation is part of the authority’s goal of receiving at least 1.7 million Indian visitors this year, it said in a statement.
Hyatt Hotels definitely has its eyes on India and the focus specifically is on domestic Indian leisure travelers. “The leisure travel market is primarily driven by Indians traveling within India and discovering the country,” said CEO Mark Hoplamazian during his recent visit to the country.
The Indian civil aviation ministry has advised domestic airlines to assess risks before flying on international routes as tensions in the Middle East are growing. The civil aviation regulatory body is working with the airlines and the ministry of external affairs to navigate the situation, civil aviation secretary Vumlunmang Vualnam has said.
The travel and tourism industry in India is projected to generate revenue of nearly $24 billion in 2024, according to industry promotions body India Brand Equity Foundation. At an estimated annual growth rate of 9.6% between 2024 and 2028, the industry is also expected to reach a market volume of $34.25 billion by 2028.
“Ninety percent of the success of hotel companies is linked to two things – demography and emerging middle class,” Accor chairman and CEO Sébastien Bazin said at the recent hospitality conference, HICSA 2024. This is especially true for India, he said, which has accounted for 25% of the emerging middle class in the past 10 years.
Vistara CEO Vinod Kannan has outlined a roadmap for the airline’s impending merger with Air India, following staff concerns and recent operational disruption.