India's Aviation Growth and Infrastructure Opportunities

As of 2023, India has become the most populous country globally, with an estimated population of 1.428 billion, surpassing China. In the same year, domestic airlines in India carried 152 million passengers, marking a significant 23.36% increase from 2022 when 123.2 million passengers traveled domestically. This upward trend underscores the immense opportunities for growth in India's domestic aviation market.

According to the Directorate General of Civil Aviation (DGCA), approximately 79.35 million domestic air passengers traveled in India during the first half of 2024 (January to June), illustrating a 4% increase compared to the same period the previous year. The Indian government aims to capitalize on this momentum by expanding its airport infrastructure, with 75 new airports built over the past decade and plans to increase the total to 220 in the next 5-7 years. Despite these developments, only about 3% of India's population, equating to approximately 42 million people, regularly use air travel due to its inaccessibility for many Indians.

India stands as one of the world’s fastest-growing civil aviation markets, with passenger traffic in 2024 reaching over 376 million, including nearly 69.6 million international passengers—a 15% increase from 2023 and surpassing the previous record in 2019.

Challenges Hindering Domestic Air Travel Growth

Despite the impressive growth in air travel, several factors hinder further expansion:

1. Airport Accessibility: Airports are often located far from city centers, necessitating early arrivals (3-4 hours before a flight) for security clearance and extended waiting times. This can be a significant inconvenience for passengers.

?2. High Costs of Onsite Necessities: The cost of necessities at airport shops can be exorbitant, sometimes three times higher than outside prices. This is often attributed to the high rental costs charged by airport owners, unlike the more affordable offerings at Indian railway stations.

3. Transportation Challenges: The lack of metro rail or rapid transit facilities at many airports forces passengers to rely on costly taxi services. Additionally, heavy traffic between city centers and airports adds further inconvenience.

?4. Limited Connectivity: While some airports are connected to the rail network, the quality and reliability of these connections need improvement.

Recommendations for Improving the Experience of Domestic Air Travel

?To enhance the convenience of domestic air travel and stimulate growth, the Indian government should focus on the following:

?- Infrastructure Development: Improve road and rail networks connecting airports to city centers, making travel more accessible and less time-consuming.

?- Streamlined Security Checks: Implement faster and more efficient security clearance processes to reduce wait times for passengers.

?- Enhanced Rail Services: Expand the availability and frequency of rapid transit and metro services to airports, alongside ensuring sufficient seat availability on high-speed trains like the Vande Bharat Express, ideally facilitating bookings closer to the date of travel.

India’s aviation sector has substantial growth potential, but this should not be pursued in isolation. Coordinated development of aviation infrastructure alongside road and rail connectivity is crucial for sustained progress and passenger convenience.

It goes without saying that the Indian domestic market is experiencing rapid growth. Several airline startups in India are preparing to introduce new initiatives. However, the question remains: how many of these startups have easy access to affordable capital?