Akasa Air, a low-cost airline that launched in August 2022, has been rapidly expanding its network to 25 cities, including international destinations such as Doha, Jeddah, and Riyadh. The airline has placed an order for 226 planes with Boeing and has already received 24 deliveries, with the rest expected by 2032. The airline’s business model focuses on using narrow-body planes for high asset utilization and cost control, which has contributed to its success so far. Plans for further expansion include adding flights to South Asia and Southeast Asia, as well as increasing connectivity to Tier 2, 3, and 4 cities in India.
India recently saw a change in its tourism and aviation ministers, with Gajendra Singh Shekhawat taking over as the new tourism minister and Kinjarapu Rammohan Naidu as the new civil aviation minister. The Modi government’s return to power is expected to continue the policies and developmental efforts of the past decade, with a focus on promoting domestic tourism and enhancing regional connectivity. The number of airports in India has more than doubled in recent years, with initiatives such as the regional UDAN scheme aimed at making air travel more accessible to smaller towns.
In other aviation news, Air India is set to launch direct flights between Bengaluru and London Gatwick, becoming the first Indian airport to have direct connectivity to both Heathrow and Gatwick airports in London. The service, which will operate five times a week starting on August 18, will use a Boeing 787 Dreamliner jet for the route. Additionally, online travel company Ixigo recently launched an IPO, which was subscribed 1.95 times on the first day, indicating strong investor interest in the travel industry.
Cleartrip, an online travel agency, has partnered with Adani One to offer bus travel options to customers, expanding connectivity in Tier 2 and 3 markets. This partnership adds to their existing collaborations for flights and hotels, providing a wide range of travel options to users. Furthermore, the state of Telangana is positioning itself as a destination wedding hub, aiming to attract investors to develop tourist destinations in partnership with the private sector. India as a whole is promoting itself as a premier wedding destination, with the 2023-2024 wedding season estimated to generate revenue of $75 billion.
Overall, the Indian aviation and travel industry is seeing significant growth and development, with airlines like Akasa Air expanding their networks and services both domestically and internationally. The government’s focus on promoting domestic tourism and enhancing connectivity is driving further investment and innovation in the sector. Collaborations between companies like Cleartrip and Adani One are enhancing travel options for customers, while states like Telangana are capitalizing on the growing trend of destination weddings to attract visitors and boost regional tourism. India’s position as a key player in the global travel industry is only expected to strengthen in the coming years.
