Indian Carriers’ Share in International Travel Surges - India Report

10.09.2024 - 07:00 / skift.com / Tim Clark / Bulbul Dhawan

Indian carriers accounted for more than 45% of the international traffic to and from India during the April-June quarter. As compared to pre-pandemic figures, the share of Indian carriers in international traffic increased by over 10 points. 

IndiGo and Air India have witnessed a 20% increase in international passenger traffic compared to last year, most likely due to the government’s decision to restrict additional bilateral flying rights for foreign airlines.

On the contrary, the share of Middle Eastern carriers in the international traffic to and from India remained lower than pre-Covid levels, with Oman Air’s share having declined by over 40% during the quarter from 2019. 

This trend reinforces the call for changes in the current bilateral flying rights granted by India. Earlier this year, Emirates President Tim Clark had said that India is restricting its flying rights to give time to Air India and the Tata group amid its merger with Vistara.

“India is clearly protecting the merger of Air India and Vistara. I know from years of experience that protecting your national carriers to the detriment of the economy of the particular country is not such a smart move,” he had said. 

Clark has been urging India to sign an open skies accord with the UAE, but he is not the only one. Carriers in the Middle East countries, including Qatar and Turkey, have been seeking grants of more rights so that they can operate an increased number of flights to and from India.

On the other hand, Indian airlines including Air India and SpiceJet have been batting for India to maintain its current bilateral agreements. Air India CEO Campbell Wilson had said that its plans to invest in new aircraft will depend on the government’s policy on bilateral agreements and the seat capacity being granted. 

He said that Indian carriers have collectively ordered more than 1,000 aircraft on the basis of the belief that there would “be an economic return.” However, if more bilateral rights are granted to hubs in other countries, it would impact Indian airlines’ ability to fill seats on those aircraft, Wilson said.

Growth of Indian Carriers: According to a report by credit rating agency CRISIL Ratings released in May this year, Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year. Last fiscal year, this share was 43%. 

The agency said that the growth is being led by a noticeable shift in spending patterns post-Covid. Apart from this, easing visa requirements, growing number of airports, and enhanced air travel connectivity are boosting international travel. 

Mauritius Tourism Promotion Authority (MTPA) organized a three-city roadshow in Bengaluru, Hyderabad and Kolkata. During