• Wed. Oct 5th, 2022

India: Indian airline industry takes off after COVID turmoil

ByKimberly A. Brochu

Aug 23, 2022
The aviation industry in India has been steadily growing, which has spurred the increase in speed among airlines in the country due to increased competition.

Akasa Air’s first commercial flight took place on the Mumbai-Ahmedabad route, marking the company’s debut in a highly competitive airline market.

Akasa, founded by the late Rakesh Jhunjhunwala, is a low-cost airline that plans to compete head-on with established players like Indigo,

and GoFirst using a fleet of 72 Boeing aircraft.

Akasa started its operations with the aim of connecting major cities in India with their outlying communities. Their plan is in line with the government’s UDAN program for regional connectivity, which aims to make air travel more accessible to the general public by lowering ticket prices.

Union Civil Aviation Minister Jyotiraditya Scindia recently said: “Over the last five years, we have gone from 2013 to 2014 from almost 6 crore passengers to almost 14.5 crore passengers We predict that by 2027 India will have 40 crore passengers a year This is the kind of phenomenal growth and if this phenomenal growth is to be made possible then it can only be made possible by a number of ‘actors entering the sector’.

Air India, IndiGo, SpiceJet, Air Asia India, Go First and Vistara are the biggest. Tata Group took control of Air India in a $2.4 billion equity and loan deal in January, wrapping up years of efforts to privatize the financially-struggling airline.

is back in business three years after a cash crunch grounded it. The airline will relaunch in September. The Ministry of Civil Aviation predicts that the new competition will create 100,000 new jobs in two years.

Businesses have been hit hard by the travel ban imposed during the coronavirus outbreak. With the easing of regulations, domestic air travel in India has seen a dramatic increase, with more than 57 million passengers carried by airlines in the first half of this year.

GP Rao, former Managing Director of Air India, said: “India is experiencing a phenomenal renaissance after COVID restrictions, although the industry started very slowly, but it has gained momentum and is in full swing. If you look at the Indian aviation market, it is the fourth after the United States, China and the United Kingdom”.

He added: “Now we expect India to overtake the UK. Now, thanks to the UDAN program, the airlines have started operating more than 600 routes and because of this, more than 10 million people have benefited from it”.

Observers say the sky is the limit for India’s aviation sector.

The Airports Authority of India, the executing agency, has awarded 948 routes under the Regional Connectivity Scheme – UDAN, out of which 405 routes involving 65 airports were operationalized as of March this year.

With more routes and airports opening, the airline industry is expected to see robust growth.

This brings more investment opportunities for the country, thus also improving the employment potential. This is another Brand India story that is developing rapidly.