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Indian airlines turn their attention to regional market


With the second phase of growth in Indian aviation expected to come from Tier-II and Tier-III cities, almost all domestic airlines are looking to connect these smaller cities for expansion. The regional market is currently under-penetrated and demand is growing at nearly double the pace at the metros amid escalating disposable incomes and economic growth. Airports Authority of India (AAI) expects air traffic from non-metro airports to rise to 45% of total air traffic in India in the next few years, up from 30% at present.   

To support this regional growth, greenfield airport development is occurring at Tier-II and Tier-III cities. There are currently 14 approved greenfield airports projects in India, 13 of which are in regional centres. The only exception is the much-delayed Navi Mumbai Airport. The Government has also launched a plan to develop an indigenous-manufactured aircraft to support continued expansion in this arena. [4088 words]

Unlock the following content in this report:


  • Untapped potential and government incentives a benefit of regional expansion
  • SpiceJet planning five more regional hubs
  • GoAir to focus on Tier-II/III cities rather than international services
  • Jet Airways and Air India also seeing regional potential 
  • India developing its own regional aircraft
  • Indian Government outlines status of greenfield airports
  • India's first private regional airports by mid-2012
  • Conclusion

Graphs and data:

  • In service and on order regional/commuter fleet of BRIC nations: Oct-2011
  • RTA-70 initial design
  • India’s greenfield airports: status as at Mar-2011
  • Development of 35 non-metro airports in India
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