IATA: India's aviation market poised for fantastic growth despite temporary issues

International Air Transport Association (IATA) Director General Willie Walsh has expressed strong optimism regarding India's commercial aviation sector, despite its historical reputation as a challenging market for airlines. Speaking in Geneva, Walsh highlighted that India possesses all the necessary components to evolve into a "fantastic market," asserting that any current operational issues are merely temporary. This perspective comes as Indian carriers are significantly expanding capacity, with over 1,500 new aircraft on order, complemented by substantial investments in new airport infrastructure across the nation.

Walsh underscored the remarkable growth within India's domestic aviation market, which is projected to be 32 percent larger in 2025 compared to 2020, reflecting more than a one-third increase in revenue passenger kilometers (RPK). He acknowledged that such rapid expansion inevitably brings challenges, referencing recent disruptions faced by carriers like IndiGo. However, Walsh maintained that the Indian market has effectively managed this growth, positioning itself as one of the most dynamic global aviation markets.

Addressing concerns about duopolistic tendencies, where IndiGo and the Air India Group collectively command over 90 percent of the domestic market share, Walsh indicated that ongoing airport capacity expansion is expected to facilitate the entry of new competitors in the coming years. He also reflected on India's past, where numerous airlines, including prominent examples like Jet Airways and Kingfisher, launched with ambitious plans only to struggle financially and cease operations. Walsh concluded by praising the privatization of Air India by the Tata Group in January 2022, viewing it as a positive development that has rectified the commercial distortions previously caused by state ownership.