A competitive aviation sector is truly giving wings to India's rapidly growing economy
India is the third largest aviation market globally, thanks to robust infrastructure, new state-of-the-art airports, multiple airlines, and a large passenger base. In May, the ministry of civil aviation said that domestic airlines saw an annual growth of 43% in terms of passengers carried. The sector contributes to 5% of GDP and 4 million jobs.
India's civil aviation market is dotted with multiple airlines: Air India, Indigo, Vistara, Akasa Air, Spice Jet, AirAsia India, Alliance Air and Air India Express, which ensures competition and a wide choice for passengers. The sector is competitive and gained traction after the takeover of Air India by the Tata Group. Jet Airways and Go First are in a revival mode, and a new airline, Fly91, is scheduled to be launched in November.
After the takeover by Tata Group, Air India, the erstwhile national carrier, has been rebranded, upgraded and modernised. The ambitious plans comprise having one low-cost airline (after the merger of Air Asia India and Air India Express) and one full-service airline (the merger of Air India and Vistara). In June, Air India signed purchase agreements to acquire 470 aircraft from Airbus and Boeing.
The deal, which is worth $70 billion based on list prices, is one of the largest aircraft orders in civil aviation history. Indigo, another leading and dominant player, has also seen healthy growth. Its market share rose to 61.4% in May, the highest in 16 years.
It also ordered 500 A320 planes with Airbus, the world's largest-ever single-tranche aircraft acquisition. CCI plays a crucial role in maintaining a level playing field and ensures compliance with competition laws. It approved the acquisition of the entire shareholding of Air Asia India by Air India
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