New Delhi, May 6 The airlines in India are poised to capture 50 per cent share of the country’s international passenger traffic by 2027-28 with a 7 per cent jump in market share from 43 per cent at present, according to a CRISIL report released on Monday.
The report points out that Indian airlines, such as Air India and IndiGo, are strategically adding new aircraft to their fleets and launching new international routes which are cutting travel time.
According to the CRISIL report, Indian airlines have the advantage of superior domestic connectivity compared to their foreign competitors, which serve only select Indian cities. This enables Indian carriers to offer end-to-end international connectivity on a single ticket to travellers from tier 2 and tier 3 cities.
"Increasing disposable incomes, easing visa requirements, growing number of airports and enhanced air travel connectivity are boosting international travel," said Manish Gupta, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings.
The government's focus on making India a hub for tourism is also expected to provide a fillip to inbound traffic.
“To capitalise on the growth in international travel, Indian airlines are investing in widebody and long-range narrowbody aircraft for network expansion, adding new international routes and introducing long-haul non-stop flights to key destinations., said Ankit Kedia, Director, CRISIL Ratings.
Thus, international passenger traffic is likely to clock a compound annual growth rate (CAGR) of 10-11 per cent over the next four fiscals, against a mere 5 per cent CAGR in the four years before the pandemic, he added.
Indian airlines have added 55 new international routes over the past 15 months, which takes the total number of flights beyond the 300 mark, the report states..
These include direct flights originating from more cities to popular long-haul destinations in the United States, Europe, and Australia, effectively reducing flying time and eliminating layovers, CRISIL said.
India's geographic location connections between the Europe, Middle East, and Africa (EMEA) and Asia Pacific regions, would facilitate the country emerging as a hub for international travel, the report added.
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