The aviation industry is abuzz with excitement as international carriers announce plans to increase routes to India, the world’s most populated nation. At the International Air Transport Association (Iata) annual general meeting in New Delhi, several airlines unveiled plans to start or increase services to and from India. Delta Air Lines, for instance, will begin non-stop services from Atlanta to New Delhi and has also announced a code-sharing pact with low-cost specialist IndiGo, alongside partners Air France-KLM and Virgin Atlantic Airways.
India’s rising middle class and growing economy make it an attractive market for airlines. The country is already the world’s third-largest domestic aviation market, and its 1.4 billion people are expected to drive future growth. Virgin Atlantic CEO Shai Weiss described India as “the most exciting market right now,” and his airline is betting on the country’s long-term potential. British Airways CEO Sean Doyle also expressed optimism, citing the large Indian diaspora in the UK and the potential for direct services to the US.
However, some industry experts have raised concerns about a possible “race to the bottom” as airlines undercut each other to fill seats. This could lead to excess capacity and thinner margins for carriers. Nevertheless, Doyle believes that market asymmetry will eventually work itself out, and demand will catch up with capacity.
IndiGo, India’s largest airline, has emerged as a major winner, inking partnerships with global industry giants such as Delta, Virgin Atlantic, and Air France-KLM. The airline has also codeshares with Qantas Airways, British Airways, and Japan Airlines. CEO Pieter Elbers hinted at deeper collaborations with Delta and its partners, saying that IndiGo has “passed the stage of dating” but is not yet ready for “marriage.”
Despite the optimism, India’s tightly regulated aviation sector poses a significant hurdle for foreign airlines. Flight rights to the country are based on bilateral agreements, which limit the number of seats carriers can operate. Emirates President Tim Clark warned that these policies risk hindering India’s aspirations to become a global player and should be revised to allow for greater flexibility and growth.
Overall, the Indian aviation market is poised for significant growth, driven by the country’s rising middle class and increasing demand for air travel. While there are challenges to be addressed, the influx of international carriers and partnerships between airlines is expected to bring more options and competition to the market, ultimately benefiting consumers.