This week, an important event took place in New Delhi, where key figures from the Indian aerospace sector gathered for a discussion on maximising the country’s regional aviation potential. Organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Ministry of Civil Aviation, the round-table brought together industry experts and decision-makers to explore the opportunities and challenges in the aviation sector. The goal was to unlock the immense potential that regional aviation holds for India.
Civil Aviation Minister Kinjarapu Rammohan Naidu, alongside other senior ministry officials, was present at the event. Among the participants was ATR’s Senior Vice President of Commercial, Alexis Vidal, who addressed the audience on the significance of regional aviation in meeting the travel needs of India’s diverse communities. Vidal emphasised the need for more point-to-point connections between secondary and tertiary cities, a strategy that would support the Indian government’s UDAN initiative, aimed at boosting air travel in underserved areas.
Several key points were raised during the discussion. The regional market segment is of particular importance, as 90% of intercity travel in India – accounting for 90 million trips each week – occurs within a range of 100-400 nautical miles. However, only 3% of these trips are currently made by air, revealing a substantial gap in air travel penetration. The demand for regional intercity travel is already significant, with a potential for 80 million additional air passengers annually. This growth could be achieved by increasing the frequency of flights on existing routes and developing new air connections. Additionally, with 40% of intercity trips originating from areas without active airports, there is a clear opportunity to expand airport infrastructure and improve access to air travel.
The event highlighted that many Indian travellers are first-time passengers, who opt for air travel over slower alternatives like trains or buses. However, these travellers are highly sensitive to pricing, particularly in a low-fare environment where the middle class is growing and seeking affordable travel options. In this context, ATR aircraft stand out for offering the lowest cost per trip and superior fuel efficiency compared to similar-sized regional jets, making them an attractive choice for airlines operating in such a competitive market.
India’s aviation market is growing rapidly, currently recognised as the fastest growing in the world. It is also ATR’s second-largest market globally, with a fleet of 70 aircraft in operation with carriers such as Indigo, Alliance Air, and Fly91.
The fact that ATR was the sole sponsor of this event, in collaboration with the Indian Government and FICCI, underscores a mutual dedication to strengthening regional air connectivity in India. This partnership is setting the stage for a future where air travel becomes a primary mode of intercity transport, driving economic growth and societal progress across the country.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
