Future of Airlines in India – India Report

The Indian aviation sector is poised for significant growth, and civil aviation minister Kinjarapu Rammohan Naidu believes the country might need 4,000 additional planes over the next two decades to cater to the demand. Currently, Indian airlines are operating around 800 planes and have an order book of over 1,200 aircraft. 

The minister, while speaking at Airbus’ India and South Asia Headquarters, added that in the next 20 years, 200 more airports will be developed in the country. During the event, civil aviation secretary Vumlunmang Vualnam said air-passenger traffic in India is expected to double in the next five years. Last year, India recorded 220 million air passengers. 

Made In India Planes: The minister said the government’s long-term plans for the aviation sector include efforts to design and manufacture planes in India. On Monday, Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated the TATA Aircraft Complex in Vadodara to manufacture C-295 aircraft. 

Modi said that this will make way for a Made in India civil aircraft and that the factory will play a key role in the design and manufacture of civil aircraft to meet the requirements of Indian travelers. 

India has the third-largest domestic aviation market in the world, according to aviation analytics firm OAG. The domestic airline capacity in India in April 2024 was about 15.6 million, up from 8 million in April 2014. The firm noted that over the past 10 years, the Indian domestic market grew at an annual rate of 6.9% and was one of the fastest-growing markets in the world. 

Over the past few months, two new airlines have received regulatory approvals to commence operations as more players are seeking to enter the booming market. Last week, IndiGo CEO Pieter Elbers noted that the sector is projected to grow at a fast pace, and that infrastructure on the ground and in the air need to keep up. He was optimistic about the growth of the sector despite the airline posting a quarterly loss for the first time in two years. 

The Indian government is planning to invest INR 920 billion ($11 billion) in airport infrastructure for construction of new airports and expansion of existing ones. It is looking to have 200 operational airports by 2025, up from 157 airports at present. 

Hilton Set to Debut in Udaipur

Hilton has signed its first property in Udaipur, Rajasthan. The 118-room hotel will be operated under the Hilton Hotels & Resorts brand and is expected to open in 2026. 

The chain is currently operating two hotels in Rajasthan – Hilton Jaipur and DoubleTree by Hilton Jaipur Amer. Due to its position as a premier wedding destination in India, Rajasthan has been the focus of several major hotel chains for some time, including Marriott International, Accor, Hyatt, and Indian Hotels Company (IHCL). 

Hilton is now ramping up its development in the state. It signed its first debut Waldorf Astoria in India in 2023 and the property is set to come up in Jaipur. India’s third Conrad Hotels & Resorts property has also been signed in Jaipur.

Mumbai Airport Brings Back Cheerful Dog Squad

The Chhatrapati Shivaji Maharaj International Airport (CSMIA) has brought back its ‘Pawfect’ initiative. Under the initiative, passengers traveling through the airport’s Terminal 2 Departure area will be greeted by dogs at Domestic Level 3 and after immigration on select days. 

‘Pawfect’ aims to emotionally support travelers through a group of nine trained dogs. The airport was running the program before the pandemic and has now decided to relaunch it to help travelers dealing with stress and travel anxiety, CSMIA said in a statement. 

Yatra, Aramco Asia Renew Corporate Travel Partnership

Online travel company Yatra has renewed its partnership with Aramco Asia as a corporate travel management partner. The extension is valid for three years and during the partnership, Aramco Asia will use Yatra for corporate travel logistics such as flight bookings, hotel accommodations, and ancillary services.

The OTA is focusing on growing its corporate travel profile. In an earnings call earlier this year, Yatra’s CEO and co-founder Dhruv Shringi talked about corporate customers being a point of focus. Earlier this month, Yatra said that it has integrated New Distribution Capability (NDC) into its booking system to make air travel bookings smoother and more tailored for its corporate customers.

SriLankan Airlines to Start Daytime Bangalore-Colombo Flight

SriLankan Airlines is set to commence a new daytime flight between Bangalore and Colombo this week, targeting Indian holidaymakers and business event attendees. With this, the airline will operate 10 weekly flights between the two cities. 

Between January and September, India was the top source market for Sri Lanka: over 286,000 Indians traveled to the island nation accounting for nearly 20% of the total tourists. The country has allowed visa-free entry to Indians, and earlier this year, Sri Lanka’s tourism minister Harin Fernando had told CNBC that Sri Lanka was benefiting from the fallout between Maldives and India. 

Apeejay Surrendra Park Opens Heritage Hotel in Chettinad

Apeejay Surrendra Park Hotels Limited has announced the opening of THE Lotus Palace Chettinad in Tamil Nadu. The 15-room heritage palace hotel is under THE Park Collection brand and has been conserved and restored by the hotel chain. 

The move is in line with the company’s expansion strategy and bolsters its presence in the heritage luxury segment, said Vijay Dewan, Managing Director of Apeejay Surrendra Park Hotels. The hotel chain currently operates 30 hotels under five brands. The company is planning to double its room inventory over the next five years.