India's Aviation Demand Outpacing Airline Capacity Growth: Ram Mohan Naidu

Speaking at an event in New Delhi, Naidu said India's revenue passenger kilometres (RPKs) had increased at a compound annual growth rate (CAGR) of 7.3 per cent over the past decade, compared with 7 per cent growth in available seat kilometres (ASKs) offered by airlines.

“This means the market is growing faster than the seats,” the minister said, highlighting the need to expand capacity and improve connectivity.

India is currently the world's third-largest domestic aviation market, with growth being driven by rising incomes, improved regional connectivity and increasing demand for air travel. The government is also seeking to position India as the world's third-largest aviation market overall in the coming years.

As part of its plans to accommodate rising demand, the government has been expanding the country's airport network. According to Naidu, the number of operational airports has risen from 74 in 2014 to more than 166 at present.

The government has set a long-term target of expanding the airport network to 400 airports by 2047. Naidu said 66 airports are currently under development, while another 100 are planned over the next decade.

The minister also announced that India will host Routes Asia 2027, a major global aviation networking and route-development event, from March 16 to 18 next year.

Naidu said hosting the event would help strengthen India's regional and international air connectivity and provide further momentum to the country's aviation sector.

“Routes Asia 2027 is going to be held in India from March 16 to March 18. It is a very important global aviation event, especially when the globe is trying to connect to each other,” he said.

Naidu noted that India's position as the world's third-largest domestic aviation market and its ambition to become the third-largest aviation market globally made improved connectivity increasingly important.

He also pointed to India's recent hosting of major aviation and international events, including the ICAO Asia-Pacific Ministerial Conference, the BRICS Summit and the IATA 81st Annual General Meeting.

“We have expanded the airport network in the country, and the next step for us is to improve the connectivity,” the minister said.

The government is therefore focusing on expanding airport infrastructure while strengthening routes between cities and regions, with the aim of ensuring that aviation capacity keeps pace with the country's growing demand for air travel.