According to a survey, India is predicted to be a major player in airline expansion in the future due to its expanding population and people’s desire to travel. According to a study by the Netherlands-based ING Bank NV, airlines Indigo and Air India have placed historically big orders for new aircraft in anticipation of India’s expected good structural growth figures.
“The country plans to open a range of new airports, and strategically located countries – such as the UAE, with the world’s second-largest airport in terms of passenger traffic in Dubai – are anticipating strong transit passenger growth from Asia,”
The Statement
The long-term global growth projection, which spans 20 years, has usually been tempered in the post-pandemic era to a range of 3–4% annually instead of 5–6%, with Europe experiencing the lowest growth figure, according to the analysis that focuses on the outlook for the global aviation sector.
It went on to say that one of the primary causes is that flying will get much more expensive due to increased pollution charges.
The first sector to recover was domestic travel inside large nations, with average travel levels having already returned to pre-pandemic levels last year. However, regional variations are common, the research noted, adding that traffic numbers in China and the US began to rise in 2024 above pre-pandemic levels.
“China and India’s domestic travel will keep driving airline expansion worldwide (more on this below). More significantly, though, is that lagging international (and intercontinental) travel is making a strong comeback, which will drive airline mileage in 2024 “
The Statement
The research further stated that India is becoming a “powerhouse for future airline growth” due to a growing population and a desire to travel.
Air India and IndiGo have declared intentions to buy as many as 170 wide-body aircraft in a little more than a year. When Air India, IndiGo, and Akasa Air’s narrow-body aircraft orders are taken into account, the order book rises to well over 1,200 aircraft—and that’s in less than 14 months, starting in February 2023.
About 90% of passenger traffic is caused by a mere 10% of the world’s population who belong to upper-middle and higher income categories, according to the May 16 research.
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The report acknowledged that there is a significant relationship between household wealth and airline travel, as well as a growing trend in travel, especially in Asia.
The middle class is growing, and household incomes are rising, which is driving up demand for airline travel. The significance of this surpasses that of population growth. Younger generations seem to travel more than older generations do, which increases the potential in nations like Indonesia and India despite environmental issue
The Statement
