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India is world’s fastest growing aviation market as double-digit domestic growth continues


The Indian market continues to be seen as an area of "huge opportunity and huge potential”, IATA CEO and Director General, Tony Tyler said upon the release of the revised full-year financial forecast this month, adding that India is the fastest growing aviation market in the world at present, followed by Brazil, driven by rapid domestic growth.

However, IATA warned that infrastructure and taxation woes could hurt the industry. “There are some issues in India, particularly in infrastructure and so on, which are possibly a problem and constraint for the industry there. We encourage the Government to make the necessary investment. But the potential for these markets is enormous,” Mr Tyler said. While noting the Airports Economic Regulatory Authority (AERA) had a “critical role to play in bringing much needed regulation to this area”, Mr Tyler expressed concern about the “high levels of taxation” in the country as well as other charges paid by international carriers at Indian airports. [1229 words]

Unlock the following content in this report:


  • 40 million pax in first eight months of 2011. 27 consecutive months of traffic growth
  • 88% traffic growth in past eight years
  • Kingfisher largest standalone carrier in Aug-2011. IndiGo closing in and larger than Jet Airways and Air India
  • LCC penetration more than doubled in pax five years to 46% of the market
  • Load factors weaken in Aug-2011
  • OTP rate of 88% in Aug-2011
  • Buoyant growth but not without challenges

Graphs and data:

  • India domestic passengers: eight months to Aug-2011
  • Indian carriers domestic passenger numbers and passenger number growth: Aug-2009 to Aug-2011
  • Indian carriers domestic passenger numbers and passenger number growth: Jan-2006 to Aug-2011 (June in light blue, trend line in green)
  • India domestic market share by carrier: Aug-2011
  • Indian domestic passenger traffic: Aug-2011
  • Capacity vs. demand levels: Aug-2010 to Aug-2011
  • Indian carriers seat factor: Aug-2011
  • India domestic on-time performance rate: Aug-2011
  • Reasons for delays in Aug-2011
  • India on-time performance rate of foreign carriers to/from India: Aug-2011
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