India has achieved significant milestones in its domestic aviation sector over the past decade, emerging as the world’s third-largest market for domestic airlines by April 2024. This marks a remarkable ascent from its fifth position ten years ago, driven by robust growth and strategic developments under Prime Minister Narendra Modi’s leadership.
Growth Trajectory and Capacity Expansion
Over the past ten years, India has demonstrated the highest average annual growth rate in airline seat capacity globally, at 6.9%. This growth has catapulted India’s domestic airline capacity to approximately 15.6 million seats as of April 2024, surpassing both Brazil and Indonesia.
Dominance of Low-Cost Carriers (LCCs)
A significant factor in India’s aviation growth story is the dominance of low-cost carriers (LCCs), which command 78.4% of the domestic airline market. IndiGo, in particular, has seen a meteoric rise, doubling its market share to 62% over the last decade with an annual capacity growth rate of 13.9%.
Infrastructure Development and Passenger Trends
India’s aviation infrastructure has expanded significantly, with the number of airports more than doubling from 74 to 157 in the last decade. This expansion has been pivotal in accommodating the increasing number of domestic passengers, exemplified by the record-breaking single-day traffic figures post-pandemic.
Comparative Analysis with Other Markets
While the United States and China remain the largest domestic aviation markets globally, India’s trajectory stands out with sustained growth even amidst global challenges. This growth underscores India’s potential as a key player in shaping the future of the global aviation industry for years to come.