Indian Airlines Poised to Capture Half of International Passenger Market by 2028

Indian air carriers are set to take off in the international market, with a projected 50% share by FY 2028 according to credit rating agency CRISIL. This significant growth is attributed to massive aircraft orders by major players like Tata Group’s Air India, IndiGo, and Akasa.

Dominating the Skies: Factors Behind the Indian Airlines International Market Share Rise

Historically, foreign airlines dominated the international passenger market in India

• Stronger Financials: Airlines like IndiGo boast healthy balance sheets, allowing for strategic investments.
• Network Expansion: Over the past 15 months, Indian carriers have added a staggering 55 new international routes, exceeding 300 in total. This includes direct flights to popular long-haul destinations, reducing travel time and layovers.
• Strategic Investments: Airlines are focusing on both short and medium-haul routes, along with widebody and long-range narrowbody aircraft to cater to diverse travel needs.
• Codeshare Agreements: Partnerships with major global airlines offer seamless onward connectivity for passengers.

Capitalizing on Advantages

CRISIL highlights several inherent advantages Indian carriers possess:

• Superior Domestic Reach: Extensive domestic networks connect smaller Indian cities with international destinations, offering one-stop convenience.
• Geographic Hub Potential: India’s strategic location positions it perfectly for connecting passengers between Europe, the Middle East, Africa (EMEA6), and Asia Pacific regions.

Looking Ahead: Growth and Investment

Ankit Kedia, Director at CRISIL Ratings, emphasizes the airlines’ focus on strategic investments:

• Fleet Expansion: Acquiring widebody and long-range narrowbody aircraft will fuel network expansion.
• New Routes and Non-Stop Flights: Airlines are introducing new international routes and offering direct flights to key destinations.

This proactive approach is expected to translate into a Compound Annual Growth Rate (CAGR) of 14-15%. In the international segment for Indian airlines over the next four years. Indian carriers are well on their way to capturing half of the international passenger market share by FY 2028.

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