Indian aviation poised for growth in 2025: Domestic passengers to soar to 170 mn by March, new airlines & more
India's aviation sector is poised for significant growth in 2025, driven by mega-mergers, fleet expansions, and new airlines, despite challenges like supply chain disruptions and safety concerns.
FollowNew Delhi: The Indian aviation industry is poised for substantial expansion in 2025, driven by mega-mergers, fleet expansions, and increasing demand for air travel. The sector is expected to witness significant developments, including the growth of direct overseas flights, the introduction of new airlines, and efforts to reduce carbon emissions.
One of the most significant developments in the Indian aviation sector is the completion of the Air India-Vistara merger, creating an integrated airline that will fly over 120,000 passengers daily and connect more than 90 destinations. This merger, along with the integration of Air India Express and AIX Connect, has created a full-service carrier and a low-cost carrier of scale for the Tata Group.
Air India has also placed an order for 100 more Airbus aircraft, comprising 10 wide-body A350s and 90 narrow-body A320 family planes. This is in addition to the orders for 470 aircraft that Air India had placed with Airbus and Boeing last year.
The Indian aviation sector is also witnessing the launch of new airlines, with Akasa Air being one of the notable examples. The airline has placed an order for 150 more Boeing 737 MAX aircraft and is expected to expand its operations in the coming year.
IndiGo, the country's largest airline, has also introduced business class seats in select flights and is expanding its international connectivity with new routes and codeshare partnerships.
Despite the significant growth prospects, the Indian aviation sector is not without its challenges. Supply chain disruptions are impacting aircraft deliveries, and issues at Boeing and engine problems are compounding the woes for airlines.
The sector is also grappling with concerns related to pilot fatigue, safety issues, and the virtual duopoly of IndiGo and Air India Group, which together have over 90% domestic market share.
India's domestic air traffic is projected to jump to 164-170 million by March 2025 and the long-term focus will be on increasing wide-body aircraft, providing more direct overseas flight connectivity and thereby making the country a global aviation hub.
The Indian government has taken several steps to promote the growth of the aviation sector. The Parliament has passed The Bharatiya Vayuyan Vidheyak 2024, which replaces the 90-year-old Aircraft Act and aims to improve the ease of doing business in aviation.
The government has also announced plans to develop two new airports, Noida and Navi Mumbai, which are expected to be operational in 2025.
The Indian aviation sector is expected to witness significant growth in 2025, driven by increasing demand for air travel, fleet expansions, and the introduction of new airlines. However, the sector will also need to address the challenges related to supply chain disruptions, pilot fatigue, and safety issues.
As Air India's Campbell Wilson noted, the transformation of the Indian aviation sector is a "Test match and not a T20." The sector is in for the long haul, and 2025 is expected to be a significant year in its growth journey.
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