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Indian Airlines to Increase Share of International Traffic

Strategic Insights

— 1 min read

As the Indian aviation ministry grants fresh flying rights to several domestic airlines, the country's airlines are expected to increase their share of the international traffic from India from 40% to 50% over the next two years. Indian airlines, led by Jet Airways, have been granted rights to operate flights to several international destinations, including Europe, South Asia, and the Middle East. The increased flying rights are expected to lead to a resumption of expansion in the Indian aviation industry.

Key Takeaways:

  • Indian airlines are expected to increase their share of international traffic from India from 40% to 50% over the next two years.
  • Jet Airways has been granted rights to operate flights to several international destinations, including Europe, Rome, and Amsterdam from Mumbai.
  • SpiceJet will add eight Boeing 737 and eight Bombardier Q400s this year, and will focus on adding more flights to its existing international routes.
  • IndiGo will start low-cost flights from August, adding 14 A320s this year to the 34 it has, and will focus on closer international routes in West Asia and South East Asia.
  • Air India is expected to join the Star Alliance of global airlines, nominated by Lufthansa.
  • Kingfisher Airlines will join OneWorld, nominated by British Airways.
  • European carriers are more concerned about West Asian carriers' expansion plans than those of Indian carriers.

Statistics:

  • Indian airlines have a 40% share of international traffic from India currently.
  • The share is expected to increase to 50% over the next two years.
  • Jet Airways has been granted rights to operate flights to 21 international destinations.
  • SpiceJet will add 16 aircraft this year, including eight Boeing 737 and eight Bombardier Q400s.
  • IndiGo will add 14 A320s this year.
  • Air India has 116- aircraft.
  • Kingfisher Airlines has 88 aircraft.

Sources:

  • Two people familiar with the development, who did not want to be identified.
  • Kapil Kaul, chief executive officer, South Asia, for the aviation consulting firm Centre for Asia Pacific Aviation (Capa).
  • Sudheer Raghavan, chief commercial officer, Jet Airways.
  • Neil Mills, chief executive officer, SpiceJet.
  • Vikram Krishnan, expert at US-based consulting firm Oliver Wyman.
  • Internal, company-specific data and documents.

RT: 1, NYSE: JET

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