Indian Economy News

Indian aviation set to soar in 2025 with more planes, flights, and airports

  • IBEF
  • December 24, 2024

The Indian aviation sector is set for dynamic growth in 2025, marked by mega-mergers, fleet expansions, and infrastructure advancements. Notably, Air India finalised its merger with Vistara on November 12, creating a unified airline partly owned by Singapore Airlines, which now connects 90+ destinations and serves over 1,20,000 passengers daily. The Tata Group also integrated Air India Express and AIX Connect, forming distinct full-service and low-cost carriers. Fleet expansion remained a priority, with Air India ordering 100 additional Airbus aircraft in December, complementing its previous 470-plane order. IndiGo, which turned 18, expanded its fleet with wide-body A350-900 planes and introduced business-class seats. As domestic air traffic is projected to rise to 164-170 million passengers by March 2025, the sector focuses on increasing wide-body aircraft and strengthening direct international routes to establish India as a global aviation hub.

Despite these advancements, challenges persist. Supply chain disruptions and engine issues have impacted aircraft deliveries, and the liquidation of Jet Airways marked a sombre chapter. Safety concerns were highlighted by a roof collapse at Delhi’s Terminal one and 999 hoax bomb threats received by airlines till November 14. On December 5, the passage of The Bharatiya Vayuyan Vidheyak 2024 replaced the 90-year-old Aircraft Act, aiming to boost manufacturing and ease of doing business in aviation. Two new airports, Noida and Navi Mumbai, are set to commence operations in 2025 to ease congestion at Delhi and Mumbai airports. Meanwhile, SpiceJet secured US$ 352.6 million (Rs. 3,000 crore) to address financial challenges. Akasa Air ordered 150 Boeing 737 MAX aircraft, denying recent safety allegations. With transformative changes underway, the sector is on a long-term trajectory toward becoming a global aviation powerhouse.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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