India’s civil aviation market poised for a double-digit growth in the next decade: Scindia

- December 15, 2022
| By : Patriot Bureau |

India's civil aviation sector has grown at 10.6 percent CAGR (Compounded Annual Growth Rate) over the last 10 years

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India’s civil aviation market is expected to increase by double digits over the next ten years, and the nation’s carriers need to have more wide-body planes to compete in the long-haul market, Civil Aviation Minister Jyotiraditya Scindia said.
At the ceremony to mark the launch of Air India’s direct service between Mumbai and San Francisco, he added that talks with airlines have taken place in an endeavour to turn Delhi into the nation’s first international hub.
“We have 86 international carriers coming into India and only 5 national carriers taking people to international destinations outside India. However, these 5 carriers that fly overseas hold 36 per cent market share. We have to look at increasing international to international traffic. That is why I have been urging all our carriers that we need to have more wide-body aircraft so that we can capture the long haul route market,” he said.
In addition, he said that Indian carriers account for only 2 percent of all foreign traffic when compared to the flag carriers of other nations.
Tata group acquired Air India in January of this year, as the airline is growing both its fleet and its flight schedule. Early in 2023, the airline will begin offering flights from Mumbai to New York, Paris, and Frankfurt.
“I am confident about the expansion plan Air India has in place for the long haul routes… Air India will forge ahead that will be in the interest of the country and the requirements of the country,” the minister said.
The minister noted that the country now has 145 airports, heliports, and waterdromes in the last eight years, adding that the civil aviation industry has undergone democratisation.
“From a low base of 63 million travellers in 2013-14, we reached 144 million travellers in 2019-20. A similar growth has been experienced on the international side. Today, India is the third largest civil aviation market in the world and is poised for double digit growth in the next decade,” he added.
The country’s civil aviation sector has grown at 10.6 per cent CAGR (Compounded Annual Growth Rate) over the last 10 years.

(With inputs from PTI)

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