The Indian aviation industry is experiencing growth and positive changes as it remains underserved while the market continues to expand. The domestic air passenger traffic in India is estimated to reach 154 million during the 2023-24 financial year, surpassing the pre-Covid figures. The sector is stable according to credit rating agency ICRA, which also forecasts a 13% increase in domestic air passenger traffic compared to the previous year. The stable outlook is supported by the recovery in both domestic and international air passenger traffic, along with a relatively stable cost environment that is expected to continue into fiscal year 2024-25.
The aviation industry in India is undergoing significant changes to address the market’s needs. The Airports Authority of India (AAI) plans to invest $3.6 billion in the next five years to build and revamp airport infrastructure, while the Adani Group is looking to inject $7.25 billion into its airport business to expand existing airports in its portfolio. Twelve new terminal buildings at airports in India have recently been inaugurated, increasing the annual passenger capacity by 60 million. With these developments, the Indian aviation market is poised for further growth and expansion.
India is witnessing an influx of business events from Indian travelers, with Tourism Australia experiencing a surge in Indian arrivals for business and meetings. The Bid Fund Program has secured five significant events from India worth over $17 million. Business travel spending in India has increased by 25% in 2023, with projected growth of 18% for 2024. Tourism Australia partnered with FCM Meetings and Events India and Singapore Airlines to network with Indian companies and promote business events from India to Australia.
Low-cost airline Akasa Air has announced Prayagraj as its newest destination, with flights operating daily from Mumbai starting in May 2024. This marks the 22nd destination in the airline’s network and the fourth city in Uttar Pradesh that will be served. Since its launch in August 2022, Akasa Air has expanded to 22 cities and initiated international operations between Mumbai and Doha. IndiGo has also announced daily direct flights between Chandigarh and Abu Dhabi, strengthening its operations in the Indian aviation market where it currently holds a 60% market share and continues to expand internationally through codeshare agreements with other airlines.
JüSTa Hotels and Resorts has opened a new boutique luxury property in Mussoorie, Uttarakhand, called jüSTa Hollow Oak. With 16 rooms, this is the fourth property by the company in the state. The company operates boutique hotels across India and plans to open new properties in Sariska, Varanasi, and Chail in the coming year, with additional properties in the pipeline. Air India has upgraded its customer care operations by deploying five new contact centers to offer round-the-clock assistance to customers worldwide. The national airline is rebranding and revamping itself post-acquisition by the Tata Group as it prepares for its merger with sister airline Vistara, signaling a new phase for the airline with new services and a fresh approach to customer care.
