Sailing Skies: Unraveling the Dynamics of Domestic Aviation in India
Domestic Aviation in India
Introduction
The aviation industry in India has grown rapidly over the past decade. Domestic aviation plays a vital role in connecting different parts of the country and boosting tourism and business activities within India. This article explores the various aspects of domestic aviation in India including segments served, key players, recent trends and the future outlook.
Short Haul Routes Dominate Domestic Market
The bulk of domestic air traffic in India is on short haul routes less than 750 km due to high population density in major cities. The metro to metro routes connecting Delhi, Mumbai, Bangalore, Hyderabad see maximum traffic. Low cost carriers have further driven demand on these trunk routes by offering affordable fares. Some of the busiest domestic routes are Delhi-Mumbai, Delhi-Bengaluru, Mumbai-Chennai and Mumbai-Kolkata. Routes connecting metro cities to nearby smaller cities have also witnessed significant growth.
Growing Role of Low Cost Carriers
Low cost carriers like IndiGo, SpiceJet and GoAir have revolutionized domestic aviation in India. With their no-frills model and competitive fares, they have brought air travel within reach of the masses. IndiGo has emerged as the largest airline with around 50% of domestic market share. Their effective fleet utilization, timely aircraft deliveries and high passenger load factors have helped them undercut full service carriers. Low cost carriers now account for over 70% of total domestic passengers carried.
Full Service Carriers Face Challenges
While low cost carriers flourish, full service carriers like Air India and Vistara are finding the going tough. Air India suffers from high costs due to unnecessary routes, fleet issues and ill-planned international expansion. Vistara is still in growth phase building market share. High airport charges and taxes also affect viability of many routes for full service players. Carriers are forcing capacity cuts, cancelling loss making flights and trying to lower costs to survive in this competitive market.
Rising Regional Connectivity
The government's UDAN scheme has given a boost to regional air connectivity in India. Many new airports and heliports are being developed under the scheme in smaller cities. Over 100 routes have commenced connecting these regions. Carriers like Air Deccan and TruJet have mainly benefited. This has increased access to air travel in areas with poor road/rail infrastructure leading to more balanced regional growth. However, high ticket prices and lack of demand on some routes continue to impact viability.
Future Outlook
Overall, domestic aviation in India is expected to maintain its strong growth trajectory owing to rising incomes, nuanced demands and infrastructure push. Low cost carriers will lead fleet induction having larger order backlogs. Over 800 new aircraft are slated to join domestic fleets over next decade. This coupled with new airports will triple capacity to over 400 million passengers annually by 2030. However high fuel costs, cut throat competition and rising passenger taxes remain challenges. Consolidation in the industry is also expected with few large carriers dominating the market.
To summarize, domestic aviation has become a mass mode of transportation within India enabling greater business and economic opportunities nationally. While key routes are saturated, tremendous growth potential exists in smaller city connectivity and stimulative policies can unlock that demand. Interline partnerships, intermodal transport integration and utilizing emerging technologies will be future growth drivers for the sector paving the way for an advanced aviation landscape in the country.
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