26 March 2021
26. March 2021 Commercial Aircraft

How air-traffic growth offers huge international potential for Indian carriers

A350 XWB in flight

 

Airbus shares a long-standing relationship with the Indian aviation industry and has worked collaboratively with the sector to catalyse its growth for the past 50 years.

The Covid pandemic continues to have a huge impact on the aviation sector. In India, with a population of almost 1.3 billion and a growing middle-class eager to travel, domestic aviation is already picking up, while long-haul travel is set to follow over the next few years.

India is the single biggest market for the A320neo Family, with about 900 aircraft ordered between two of the country’s biggest carriers, IndiGo and GoAir. The country, which currently has 99 operational airports, is set to reach 200 airports by 2040. Meanwhile, air cargo is projected to quadruple to 17 million tons in the same timescale.

India is an ideal halfway-point between the Far East and the West, offering an additional pivotal access point to major world capitals and populations. This, together with the global Indian diaspora and immense international business links, means the market for international long-haul travel will also thrive.

Today, the share of revenue captured by Indian carriers serving the country’s international air traffic is just 36%; many of the widebodies serving the Indian market are Airbus aircraft but the proportion flying with Indian carriers is small. With the integration of new-generation Airbus aircraft, providing airlines with lower fuel burn, lower costs and greater range, Indian carriers are in the best position to capture a larger share of this ever-growing market, which is not only profitable but has huge potential for growth.

Airbus can offer Indian carriers two of the most modern, cost-effective and environmentally-sustainable widebody aircraft on the market today, specifically designed for comfort and the passenger in mind.

The A350 is an aircraft with the range, economics, passenger capacity and comfort perfectly suited for long-haul travel, offering direct flights from India to both the US East and West Coasts - potentially linking the strategically-important IT hubs of Silicon Bengaluru and Silicon Valley.

Airbus’ other latest widebody - the A330neo - is the perfect fit for flights from India to Europe’s major commercial centres, as well as destinations in South-East Asia and Australia, including Sydney.

Throughout the Covid crisis, cargo has been a key and stable source of revenue for carriers worldwide. Airlines have been using Airbus’ widebody aircraft for such missions but India’s fleet is mainly composed of single-aisle aircraft. This provides huge potential for Indian carriers to build capacity on cargo to service this growing demand for worldwide freight transportation.

Our most advanced and reliable widebody aircraft could be a strategic enabler for Indian airlines to grow in a profitable way, diversify their operations and become more resilient in their journey to recapturing international market share.

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