India to become world’s 3rd largest air market by 2025
The commercial aviation market is undergoing unprecedented disruption in India. The country is preparing to become the 3rd largest player in the world and is multiplying initiatives in terms of investments, regional links, the relaxation of security rules and the criteria necessary to operate international flights.
The improved performance of the airlines around the world could be due to the new rules imposed by the DGCA (General Directorate of Civil Aviation) in September 2016. According to the new regulation, if the flight does not take off within five minutes after the fire green of air traffic control, it will have to be pushed back to the back of the queue where it will have to wait for the next slot available to take off.
Previously, on Indian soil, if a flight scheduled for takeoff at a particular time did not leave in time, it also delayed other flights in the queue. With this new procedure, companies that are well organized and take off on time are not bothered by others. Indian airlines are now making efforts to avoid arriving late on the track.
At the same time, in Indian commercial aviation, there has been a clear increase in flight frequencies, routes and passengers. The International Air Transport Association (IATA) had published an interesting report in 2017 that foresaw significant future tourism trends around the world. The prediction that India is expected to overtake the UK as the third largest air market by 2025 is pleasing the hotel industry and tourism businesses.
In terms of market size, the United Kingdom will move from third to fifth place. India will overtake the United Kingdom as the third largest air market in the world by 2025. In 2026, the country (India) will have 337 million new passengers and a total of 478 million air travellers. It will be more than Japan (just under 225 million) and Germany (just over 200 million) combined. Of these numbers, growth is expected to come primarily from the Asia-Pacific region. This are will be the source of more than half of the new passengers over the next two decades.
These forecasts encouraged the Indian government to improve the aviation sector, as it has obviously been doing for a few years. India’s government is realizing the potential of this industry and the large middle class population of India of about 35 million people who now enjoys relatively increased purchasing power. In order to make flights affordable for a large proportion of middle class people, air fares have been reduced by 18% since 2016. Air India is also preparing to be privatized…