India civil aviation on the runway of rapid growth - Sky One FZE

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INDIAS CIVIL AVIATION ON THE RUNWAY OF RAPID
GROWTH
A burgeoning domestic sector will propel Indias
aviation to even greater heights in 2024, says
Jaideep Mirchandani, the group chairman of the
global aviation conglomerate Sky One
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Introduction
During the first week of December, in a session
of the Rajya Sabha, Union Minister of Civil
Aviation Jyotiraditya Scindia unveiled the
governments ambitious target to have a
staggering 42 crore people in India traveling by
airplane by the year 2030. This vision echoes the
exponential growth of Indias Civil Aviation
sector. According to the International Air
Transport Association (IATA), India will soon
become the third largest aviation market in the
world displacing the UK by 2026, and the
countrys passenger traffic will touch 442
million by 2025. Indias growth will be driven by
various factors such as robust economic expansion
and the increasing middle-class population,
fuelling air passenger traffic growth and
generating demand for bigger fleets of passenger
aircraft. This growth trajectory is intricately
linked to the burgeoning domestic aviation in the
country. In November 2023, Indias domestic air
travel reached unprecedented heights as carriers
transported 4,56,910 passengers, marking two
consecutive historic days, according to Civil
Aviation statistics. This count significantly
surpassed the previous years record of 5,506
flight movements in 2022, reaching 5,958 flight
movements on November 19, 2023.
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Notably, the growth in Indias aviation sector is
also evident from the substantial increase in the
number of airports. In the first 65 years of
Indian independence, there were 74 airports.
However, at present, there are 149 functional
airports, heliports, and water aerodromes, as
reported by the Civil Aviation Ministry.
Presently, with the Indian aviation industry
experiencing high, prominent global airlines are
attentively monitoring the country, eager to
harness the immense potential it offers. As we
approach the threshold of 2024, Indian civil
aviation positions itself at the forefront of
transformative developments, primed for
noteworthy growth and innovation. It is equally
intriguing to anticipate the key trends that will
mould the landscape of Indian aviation in the
years to come.
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Fleet Expansion and LCCs
The projected surge has led airlines to
strengthen their fleets by adding an estimated
150 aircraft in the coming months. The countrys
aviation fleet is reportedly set to expand by 25
per cent as well. Air India is expected to lead
with an addition of more than 91 aircraft next
year, followed by IndiGo with plans to add 35,
and Akasa Air poised to acquire 18 aircraft. If
these reports on fleet additions materialise, it
would mark one of the most significant expansions
in aviation history. Low-cost carriers (LCCs)
will emerge as a formidable force, fundamentally
altering the dynamics of domestic travel. The
remarkable surge in domestic travellers opting
for price-sensitive options aligns seamlessly
with the rapid expansion of LCCs. This
significant shift in consumer behaviour is
reshaping the narrative of air travel
accessibility within India.
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Infrastructure Development
The government signalling substantial investments
in infrastructure development is another positive
sign. With ambitions for 220 operational airports
by 2025, the industry is on the path of enhanced
air connectivity. This upswing in infrastructure
denotes not only a quantitative expansion but
also a qualitative shift towards a
technologically advanced, digitally connected
aviation ecosystem.
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Sustainable Solutions
That the country is also heading towards
sustainable solutions is evident in recent deals.
For instance, InterGlobe Enterprises (IGE), the
promoter of IndiGo is entering into a partnership
with California-based electric vertical take-off
and landing (eVTOL) vehicle startup Archer
Aviation to launch an electric air taxi service
in India by 2026. While electric aircraft are
still in the nascent stages of adoption, their
introduction heralds a future where
sustainability and aviation can coexist. This
trend is not only a response to environmental
imperatives but also a proactive step towards
aligning the industry with Sustainable
Development Goals.
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Technology for Customer-Centricity
Achieving success in a market like India not only
necessitates a deep understanding of local
cultures, business practices, and regulatory
environments but also the unique needs of the
customers. Airlines that embrace technology and
integrate it into their customer experience
strategy will reap significant benefits. The key
lies in using data to craft tailored experiences
for each passenger. By collating insights about
passenger preferences and travel history,
airlines can curate experiences to serve Indias
diverse demographics better.
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Bridging Skill Gaps
As the industry expands, it presents numerous
opportunities for skilled professionals including
world-class aviators. Simultaneously, there is a
growing need for expertise in AI (Artificial
Intelligence), data analytics, and automation to
navigate the evolving technological
landscape. Comprehensive training programs are
imperative to bridge the skills gap, providing
professionals with the knowledge to decode the
intricate interplay of technology and aviation.
Collaborative efforts between educational
institutions and industry stakeholders will play
a pivotal role in shaping a workforce capable of
steering the industry into the future. The
government is also expected to make various
policy decisions to ensure a sufficient supply of
experienced pilots and technicians to the global
workforce. In summation, it can be stated that
the Indian aviation industry is headed towards a
future characterized by transformative growth,
sustainability, and technological innovation.
With significant aircraft orders, digital
evolution, adoption of sustainable aviation
practices, resilience in the face of challenges,
and the increasing demand for a skilled
workforce, the industry is all set to soar and
conquer.
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