India set to become one of world’s most exciting aviation markets: IATA chief

India, long viewed as a difficult market for airlines to thrive in, has all the conditions to become a remarkably strong aviation market, and many of the current challenges are only temporary, according to IATA chief Willie Walsh.

Walsh, Director General of the International Air Transport Association (IATA), a global body representing nearly 360 airlines and more than 80 per cent of worldwide air traffic, noted that the association’s members include Air India, IndiGo and SpiceJet.

Walsh hails India’s rapid aviation surge

With significant growth potential and rising air traffic demand, Indian carriers are preparing to expand capacity, with more than 1,500 aircraft currently on order and new airports being developed across the country.

Welcoming investments in airport infrastructure and by airlines in additional aircraft, Walsh said India's domestic market is now 32 per cent larger in 2025 than in 2020.

Also Read: Amid Bihar's GAY airport row, a look at quirky codes around the globe

"It (Indian domestic market) has increased by more than a third in terms of revenue passenger kilometres... That growth does not come without challenges... India has facilitated that growth, which has been a great example... It is one of the most exciting global markets," Walsh said.

Airport expansion to attract new entrants

Against the backdrop of Indigo flight disruptions and other challenges, the IATA chief said he sees some of the issues being faced in the Indian market as temporary.

At a media roundtable in Geneva on Tuesday (December 9), Walsh noted that all the ingredients for a fantastic market exist in India.

"I don't think we would be critical of them for the fact that other airlines have not entered the market, or where we are today as well. They have survived and continue to operate well. So, I think the market will change over time," he said.

Also Read: Airlines want testing to replace quarantine; IATA working with WHO

The response came in to a query on duopolistic tendencies in the fast-growing Indian market, where Indigo and the Air India Group hold over 90 per cent of the domestic market share.

"I think with the expansion of airport capacity, we will facilitate new entrants into the market. And that's something that we will witness over the coming years as well," he said.

Air India privatisation seen as positive

Over the years, many airlines have been shuttered in India after taking off with ambitious plans and even flying for decades.

Acknowledging that India has historically been a challenging market for airlines to succeed in, the IATA DG said many airlines have grown, then struggled financially and disappeared.

"Jet Airways and Kingfisher being two very obvious examples of what we saw as global carriers with global ambitions, which made big investments and sought to grow but struggled to be financially viable and, regrettably, have disappeared," he said.

Also Read: IndiGo’s extreme market muscle makes it too big to fail or regulate

Walsh also mentioned that the privatisation of Air India has been a very positive development, as the airline's state ownership had distorted its commercial operating environment.

Tatas acquired loss-making Air India from the Indian government in January 2022.

(With agency inputs)