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Potential and Challenges of Indian Aviation IATA Releases Comprehensive Report on Indian Aviation
06 September 2018

Delhi - The International Air Transport Association (IATA) released a comprehensive report on India’s aviation market. The report focuses on the challenges of realizing the economic and social benefits of an Indian aviation industry that has tremendous potential for continued high-speed demand growth.

Key findings of the report include:

  • Indian aviation is growing fast
    • In 2010, 79 million people traveled to/from/or within India. By 2017 that doubled to 158 million. That number is expected to treble to 520 million by 2037.
  • Air transport makes a significant economic contribution to India
    • Aviation in India supports 7.5 million jobs: 390,000 directly, 570,000 in the value chain, and 6.2 million in tourism.
    • Aviation contributes some US$30 billion annually to India’s GDP.
  • India will be the third largest domestic market (behind the US and China)
    • Domestic load factors are high, hitting a record 90% in February 2018.
    • The 98 million domestic passenger trips in 2017 equal 7.3% of India’s population.
    • After adjusting for inflation, average domestic fares fell by more than 70% since 2005.
    • The number of domestic airport pairs is 700 (a 50% increase on 2015 levels).
    • Low cost carriers account for about 70% of domestic seats.
  • India’s international market is growing more slowly than domestic
    • In 2017 there were about 60 million international journeys to/from India.
    • Low cost operators account for about 25% of international capacity.
    • India is directly linked to 304 international destinations, up from 230 in 2008.
    • About 41% of India’s direct international connectivity is to the Middle East—much of it to super-connector hubs of UAE and Qatar.
  • The Indian outbound air cargo market topped 1 million tonnes in 2017 (+16.9% on 2016)
    • UAE is India’s largest cargo market (30%); Ethiopia is the fastest growing of the main markets (+114% on 2016).
    • Delhi and Mumbai are India’s largest cargo hubs; Mumbai and Chennai are the fastest growing (+18.1% and +17.2% respectively).
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