TravTalk India Online Magazine
India is now the third largest domestic aviation market globally. The country’s airline capacity is expected to double from its 2014 level and reach 230 million departing seats by this year end, as per the OAG report.
Surbhi Sharma
India’s aviation market is undergoing a major transformation post pandemic and has made remarkable progress. Elaborating on this achievement, Mayur Patel, Head of Asia, OAG Aviation, said, “India has positioned itself as the third largest domestic aviation market in the world. The country has witnessed substantial growth in the domestic sector with a steady increase in the travel demand. This achievement showcases the country’s expanding middle class and rising disposable income in the hands of people.”
Sharing the factors behind the achievement, Mayur said that the Government of India’s efforts to liberalise the aviation sector, coupled with the entry of low-cost carriers, have played a crucial role in driving this growth. “The rise of budget airlines has made air travel more affordable and accessible. Furthermore, the implementation of the Regional Connectivity Scheme (RCS) has enhanced the connectivity to remote areas, promoting regional tourism and economic development,” Patel said, adding that the aviation sector is poised for further growth in the coming years.
As per the OAG report, India’s airline capacity is expected to double from its 2014 level and reach 230 million departing seats by this year end. The domestic airline capacity has historically increased more quickly than its international counterpart, with an average annual growth of 8.7 per cent.
The report stated that the growth potential for India’s aviation sector in the next 10 years is essentially two-fold; there is considerable opportunity for the domestic market to continue to expand and provide more equitable services to the world’s largest population than it presently does, and for Indian outbound services to flourish. Aviation growth is typically driven by economic growth, with traffic often growing at 1.5-2 times the rate of GDP. The GDP per capita in India has risen from US $1,500 in 2014 to $2,731 in 2024.
