India's Aviation Boom Fuels Openings For New Airline Players

India's booming aviation market is attracting opportunities for new airline players as passenger numbers reach record heights.

A remarkable 174 million passengers traveled on Indian domestic and international flights in 2024.

Montreal:

The rapid expansion of India's aviation sector necessitates enhanced government supervision as airlines acquire thousands of new aircraft, creating market opportunities for new carriers, according to India's top aviation safety official in comments to Reuters.

Faiz Ahmed Kidwai, director general of civil aviation, emphasized the need for "increased responsibility, more comprehensive safety oversight, and additional manpower" during an interview at the UN aviation agency's triennial assembly in Montreal. This comes as India's commercial aircraft fleet has nearly doubled over the past decade, with orders for another 2,000 planes pending.

While India represents one of the world's fastest-growing aviation markets, the Air India crash in June has intensified scrutiny of the country's safety standards.

The nation also confronts pilot shortages, and a parliamentary committee recently cautioned that insufficient staffing at the air safety regulator could compromise safety. In July, the regulatory body reported identifying 263 safety-related deficiencies among Indian airlines.

Although IndiGo and Air India largely dominate the country's aviation landscape, increasing travel demand is creating opportunities for additional carriers.

"We believe there is room for more airlines because the sector's growth requires additional players," Kidwai stated.

"New carriers entering the market will certainly find opportunities."

The record 174 million domestic and international passengers who flew in India during 2024 represents significant growth, though still considerably less than China's 730 million passengers, according to International Air Transport Association data.

The June Air India crash, which claimed 260 lives in the worst aviation disaster in a decade, has cast a shadow over India's emergence as an aviation hub.

A preliminary investigation report released by the Indian government indicated pilot confusion in the cockpit shortly before the crash, after the plane's fuel engine switches had nearly simultaneously changed from run to cutoff position just after takeoff.

On Monday, the Supreme Court requested the government's response to a petition seeking an independent investigation into the crash. Kidwai confirmed that the investigation remains under the jurisdiction of India's Aircraft Accident Investigation Bureau, in accordance with international protocols.