India's Aviation Market Poised for Take-Off

India's aviation market, long challenging for airlines, is set for rapid growth with over 1,500 new planes ordered and airport expansions. Willie Walsh of IATA highlights temporary issues and sees investment and privatization positively impacting the market, despite historical struggles of carriers like Jet Airways and Kingfisher.

The Indian aviation sector, long considered a challenging terrain for airlines, is on the brink of a potentially transformative phase. According to Willie Walsh, Director General of the International Air Transport Association (IATA), India holds all the necessary components to evolve into a thriving market with current challenges deemed temporary.

The country's burgeoning air traffic demand has led Indian carriers to significantly expand their fleets, with over 1,500 new aircraft on the order. Additionally, growth in airport infrastructure is being facilitated, aiming to cater to the increasing domestic market, which is projected to be 32% larger in 2025 compared to 2020.

Walsh notes that while historical challenges have seen many airlines, like Jet Airways and Kingfisher, struggle financially and disappear, the privatization of Air India is a promising development. Despite the dominance of IndiGo and the Air India Group in the domestic market, Walsh foresees opportunities for new entrants as capacity expands.

(With inputs from agencies.)