IATA: Airport expansion will open door to new airlines in India

India’s aviation sector is poised for significant expansion, with strong demand, rising capacity and substantial aircraft orders, according to Willie Walsh, Director General of the International Air Transport Association (IATA). Speaking in Geneva on Tuesday, Walsh said that while the country has historically been a difficult place for airlines to thrive, the current momentum makes it “one of the most exciting markets in the world”.

India’s domestic air travel has grown rapidly, with the market now 32 per cent larger in 2025 than it was in 2020, measured in revenue passenger kilometres.

“It has increased by more than a third. That growth does not come without challenges, but India has facilitated that growth very effectively,” Walsh said. More than 1,500 new aircraft have been ordered by Indian carriers, and airport expansion is continuing nationwide.

Addressing recent operational disruptions and challenges, including those faced by IndiGo, Walsh said these were temporary and did not detract from the market’s long-term prospects. IATA represents nearly 360 airlines that operate more than 80 per cent of global air traffic, including Indian carriers Air India, IndiGo and SpiceJet.

Asked about concerns over a duopoly, with IndiGo and the Air India Group holding over 90 per cent of the domestic market, Walsh said expansion of airport capacity would create space for new entrants. “We will witness that over the coming years,” he said.

Walsh acknowledged that India has seen many airlines collapse after periods of strong growth. “Jet Airways and Kingfisher are obvious examples of carriers that had global ambitions, made big investments, but ultimately could not remain financially viable,” he noted.

However, he said the privatisation of Air India, acquired by the Tata Group in 2022, had been a “very positive development”, ending the distortions created by state ownership and improving the airline’s commercial competitiveness.

With PTI inputs