Indian Airlines Set to Dominate International Passenger Traffic by FY'28: CRISIL Report
Indian Airlines Set to Dominate International Passenger Traffic by FY'28: CRISIL Report
As per a recent report by CRISIL, Indian airlines are poised to claim a significant portion of the international air passenger market, projecting a remarkable surge in market share by the financial year 2027-28.
Rapid Growth Anticipated
CRISIL predicts a substantial increase in the share of Indian airlines in international passenger traffic, encompassing both originating and terminating flights as well as those in transit through the country. The projection indicates a notable rise of 700 basis points, reaching approximately 50 per cent by FY'28, up from 43 per cent in the previous fiscal year.
Factors Driving Growth
This upward trajectory is attributed to various factors. Indian carriers are expected to bolster their fleet and expand their international routes, leveraging their strong domestic network as a competitive advantage over foreign counterparts. CRISIL underscores the profitability of the international segment, further strengthening the business profiles of Indian airlines.
Post-Pandemic Resurgence
Following the challenges posed by the pandemic, India's international air travel has witnessed a notable revival, surpassing pre-pandemic levels. CRISIL observes a marked increase in Indians' inclination towards international leisure travel, propelled by rising disposable incomes, eased visa regulations, and enhanced air connectivity.
Government Support and Economic Trends
The government's initiatives to position India as a tourism hub are also expected to boost inbound traffic. CRISIL forecasts a robust compound annual growth rate (CAGR) of 10-11 per cent in international passenger traffic over the next four fiscal years, highlighting a significant acceleration compared to pre-pandemic growth rates.
Strategic Initiatives by Indian Carriers
Indian airlines have been proactive in expanding their international footprint. They have introduced new routes, including direct flights to popular long-haul destinations, thereby reducing travel time and enhancing convenience for passengers. Additionally, they are augmenting their fleet and leveraging codeshare agreements to offer seamless connectivity.
Natural Advantages and Strategic Positioning
CRISIL emphasizes the inherent advantages of Indian airlines, including superior domestic connectivity and geographical positioning conducive to facilitating air connections between regions. These factors position India as a potential hub for international travel.
Future Projections
Looking ahead, CRISIL anticipates a continued growth trajectory for Indian airlines in the international segment. With strategic investments in fleet expansion and route development, Indian carriers could achieve a remarkable CAGR of 14-15 per cent, solidifying their market share at 50 per cent by FY'28.
In conclusion, CRISIL's report underscores the promising outlook for Indian airlines in the international aviation landscape, driven by strategic initiatives, favorable economic trends, and inherent competitive advantages.