India has emerged as the third largest market for domestic air travel, but its international air travel numbers are lagging behind, according to CAPA India chief Kapi Kaul. Speaking at an event organized by JRD Tata Memorial Trust, Kaul highlighted the need for regulatory reforms to address this issue, warning that the capacity pipeline will decrease further if corrective measures are not taken.
Kaul pointed out that India’s international air travel penetration is the lowest among the top 20 domestic markets, despite its position as the third-largest domestic market. He emphasized the disparity in per capita consumption of air travel seats compared to countries like Australia, and highlighted the untapped potential for growth in the international travel sector.
The privatization of Air India, which took place nearly two years ago, was described by Kaul as a “landmark reform” that will contribute to the promising future of Indian aviation in the international market. He also emphasized the need to strengthen institutions such as the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS), and urged the government to implement bold reforms to ensure a smooth flight into the future.
Kaul also shared statistics showing a 10% compound annual growth rate in international passenger volumes at Indian airports over the 15 years leading up to FY19, reaching 69.5 million. He expressed confidence in the potential for Indian aviation to conquer international markets in the coming decade, particularly as the country’s economy continues to grow.
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