Can India become an aviation transit hub?
Mint explains: A transit hub is an airport that provides smooth connectivity from one foreign destination to another. Ideally, a transit hub should enable a seamless transfer experience to someone flying from country A to country C via country B. A transit hub often requires a stronghold of a large carrier with a widespread network so that the airline can offer one-stop connectivity to passengers with a wait time of no more than 2 to 3 hours between flights.
Under this, a hub-and-spoke model is at play where traffic is concentrated and then distributed to final destinations at affordable price points and minimum wait period. In 2018-19, Indian airlines had a share of 40.2% of air passenger traffic to and from India, as per data from the Directorate General of Civil Aviation. This share has now increased to 44% in 2022-23.
On the other hand, the share of overseas airlines has decreased to 56%. In the short and medium-haul segments, India now has low-cost carriers in the international segment. Apart from IndiGo, Akasa is expected to fly to foreign destinations in the next few months.
Therefore, aviation watchers believe that India has the potential to become a transit hub that is economical and offers basic services to begin with. The Air India group and IndiGo are two players with the potential to turn the transit hub dream into a reality. The two have ordered nearly 1,500 aircraft to be delivered through the decade and beyond.
Nearly 95% of the fleet to be inducted are narrow-body planes that can cover 5 to 8 hours of travel, including destinations in Europe. The plan is to start with New Delhi. A group representing the government, the Delhi airport and airlines have hired a consultant to come up with best practices in
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