India Domestic Travel Industry Thrives With A Remarkable 4.6% Surge Boosted By IndiGo, Air India And Akasa Airlines

Thursday, July 4, 2024

India aviation sector is soaring with major airport expansions and significant airline fleet enhancements in 2024.

In May 2024, Indian aviation witnessed a notable expansion, with domestic sectors showing significant growth. Passenger traffic increased by 1.8% year-on-year, while available seat kilometers (ASK) grew by 4.6%. Despite an 8.2% increase in seat capacity, passenger load factor (PLF) decreased slightly by 3.0 percentage points, stabilizing at 88.6%. According to IATA (The International Air Transport Association)

Top Airports in India

1. Indira Gandhi International Airport (Delhi)
Indira Gandhi International Airport remains India’s aviation frontrunner. In 2024, it was ranked the tenth busiest globally by OAG. The airport set a new record by handling 73.6 million passengers in the fiscal year 2023-24, maintaining its status as the busiest in Asia by passenger volume. Its seating capacity surpassed 3.6 million, the highest in the world.

2. Chhatrapati Shivaji Maharaj International Airport (Mumbai)
Celebrated for its architectural marvel, this airport is not only a hub for international and domestic travel but also a cultural gateway. In 2024, it handled a combined passenger traffic of 52.7 million, marking it as the second busiest in India. The airport saw a 12% increase in air traffic movements, reaching 324,972 ATMs.

3. Kempegowda International Airport (Bengaluru)
As the nerve center of India’s Silicon Valley, Bengaluru’s primary airport mirrors the city’s technological and modern ethos. The airport served over 37.5 million passengers in 2024, connecting to every inhabited continent directly, except Antarctica.

4. Rajiv Gandhi International Airport (Hyderabad)
Consistently ranked among India’s top for service quality, Hyderabad’s airport combines efficient operations with customer-centric amenities, making it a preferred choice for both domestic and international travelers.

5. Netaji Subhas Chandra Bose International Airport (Kolkata)
This airport has significantly evolved with extensive upgrades enhancing the passenger experience and increasing its capacity. It serves as an important hub in Eastern India, linking several domestic and international destinations.

The growth in Indian aviation is underpinned by the performance of these top airports, which are not only gateways to the nation but also critical cogs in India’s economic engine. Their expansion and efficiency play a pivotal role in accommodating the rising passenger and cargo traffic, propelling India’s position in global aviation.

India’s Aviation Infrastructure and Key Airports

India’s commitment to enhancing its aviation infrastructure is evident through the advanced facilities and extensive networks of its top airports. These hubs not only connect India to the world but also underscore the nation’s dedication to fostering economic growth through improved aviation connectivity.

Prominent Airlines Enhancing Global and Domestic Connectivity

1. IndiGo
India’s largest airline, IndiGo, commands a 61.6% share of the domestic market as of May 2024. Known for its punctuality, IndiGo transported over 100 million passengers in 2023, maintaining a vast network that spans significant domestic and international routes.

2. Air India
As India’s flag carrier, Air India plays a crucial role in linking major global cities. It transported over 18 million passengers in FY 2023, reflecting its importance in both domestic and international markets.

3. Akasa Air
Akasa Air, launched in 2022, is a burgeoning force in the budget airline sector. The airline has recently placed an ambitious order for 150 Boeing 737 MAX jetliners, valued at approximately $20 billion. This order, comprising a mix of 737 MAX-8 and 737 MAX-10 variants, is scheduled for delivery between 2027 and 2032, signifying Akasa Air’s long-term commitment to expanding its domestic network.

4. SpiceJet
SpiceJet caters to a budget-conscious demographic, offering low-cost fares across a comprehensive domestic and selected international network. It remains a popular choice for economical travel.

5. Vistara
Vistara is synonymous with premium service and timely operations. With the recent addition of its seventh Boeing 787-9, completing an order for 56 aircraft, Vistara now operates a fleet of 70 aircraft, offering a luxurious and punctual flying experience.

Regional Influence and Strategic Fleet Expansion

The Asia-Pacific region has seen a notable 27.0% increase in demand year-on-year as of May 2024. This surge is led by Indian carriers, who are instrumental in driving regional aviation growth, with a 26.0% increase in capacity and an 81.6% load factor.

Fleet Development Highlights:
The recent fleet expansions highlight the ambitious growth strategies of Indian airlines. Air India and IndiGo combined have placed orders for 970 aircraft from Boeing and Airbus in 2023. Tata Group’s Air India accounted for 470 of these planes, while IndiGo’s massive order for 500 Airbus aircraft underscores its growth trajectory. Akasa Air’s significant investment in 150 Boeing jetliners marks a strategic move to bolster its service offerings and operational capabilities.

The strategic enhancements in India’s aviation sector, characterized by significant investments in airport development and airline fleet expansion, are set to propel India’s status in the global aviation market. These developments not only improve the travel experience but also strengthen India’s economic position by boosting its aviation sector.

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