Jaideep Mirchandani, Group Chairman of Sky One says that domestic growth and infrastructure development will help Indian aviation maintain its momentum in the coming year
India’s aviation sector is witnessing rapid growth, with significant increases in both domestic and international passenger numbers. Jaideep Mirchandani, Group Chairman of Sky One believes that with substantial infrastructure development, enhanced regional connectivity, and strategic government initiatives, Indian aviation will likely experience continued momentum in 2025.
Here’s Mr Mirchandani’s recap of the key trends India’s aviation sector witnessed this year:
Domestic Aviation Growth
According to data from the Civil Aviation Ministry, domestic air passenger traffic has seen a significant rise, with October 2024 recording an increase to around 138.5 lakh passengers, marking a 6.3 percent increase over September’s 130.3 lakh. This reflects a 9.6 percent growth over October 2023. International travel is also on the rise. Official data shows that Indian carriers reported 162.6 lakh international passengers in the first half of 2024, a 16 percent increase over last year and an impressive 46.5 percent jump from pre-COVID levels in 2020. One reason for this surge is the growing desire among India’s youth to explore new destinations, with affordable fares making air travel a convenient choice.
New Routes and Airports
According to government data, the number of operational airports in India has doubled from 74 in 2014 to 157 in 2024, with plans to expand this to 350-400 by 2047. The Regional Connectivity Scheme -Ude Desh ka Aam Nagrik (RCS-UDAN) has also been instrumental in connecting underserved and unserved airports across the country by reviving existing airstrips and airports. Official data indicates that 583 RCS routes are now operational, linking 86 airports, including 13 heliports, two water aerodromes, and 12 greenfield airports. International airports in Delhi, Mumbai, Hyderabad, and Bengaluru have achieved Level 4+ Airports Council International (ACI) Accreditation and are undergoing expansion. Moreover, the Noida International Airport is expected to begin operations in the coming year.
Rise of Spiritual Tourism
In 2022-2023, the travel and tourism industry contributed about US$199 billion to India’s GDP. According to professional services company Colliers, spiritual tourism holds a 30% market share in the country’s travel and tourism sector and accounts for 60% of the domestic tourism market. Various reports predict that India’s spiritual tourism market will be worth around US$59 billion by 2028. We have also seen airports emerging in smaller cities such as Shirdi and Kushinagar, primarily aimed at the convenience of pilgrims. The increase in passenger numbers at airports in Amritsar, Ayodhya, Varanasi, Dwarka, Puri and Tirupati further indicates the growing popularity of spiritual tourism in India.
Emergence of New Airlines
The emergence of new airlines will benefit business travellers as well as domestic passengers. The latest entrant to Indian skies, Shankh Air, has already announced plans to offer convenient travel options for workers in Greater Noida, Meerut, Ghaziabad, Faridabad, and southern Gurgaon. New entrants like Air Kerala, Alhindair will soon offer convenient travel options across South and North India. The increase in the number of flights, especially in the domestic sector, will enhance connectivity on inter- and intra-state routes. This will also help passengers in cities with relatively high demand by providing more direct connectivity options and filling gaps in the market with additional choices.
