India Resists Calls For More Access To Airports, Domestic Airlines To Focus On Expansion

Aerospace companies have been asked to step-up local production and stepping up efforts to match up with major global aviation markets

Aviation minister Jyotiraditya Scindia urged domestic carriers to fly long-haul and help establish new hubs as it seeks to recapture control of Indian travel from foreign rivals. The outlook dampened the hopes of foreign airlines looking for more access to airports.

It is also asking aerospace companies to step-up local production and will soon finalise rules to safeguard rights of lessors on repossession of jets, in a bid to level up with major global aviation markets, reported news agency Reuters.

“We are going to see an explosion of air traffic in India in the years to come,” Scindia told the agency and added that he wanted domestic carriers to look at international expansion with greater focus.

India remains one of the fastest-growing aviation markets in the world as the demand for air travel is outstripping the supply of planes, but the majority of the international traffic is captured by global carriers with efficient hubs.

India is looking to tap into these economic gains by pushing the growth of its airlines and airports. Air India last month placed a record order for 470 jets and is making an aggressive push in the international market. Domestic rival IndiGo is also in talks for a new order of more than 500 planes, reported Reuters even as it waits to take delivery of the same number from an older order.

Scindia also said India was not aiming to increase air traffic quotas with Gulf states and instead wanted Indian carriers to offer non-stop long-haul flights on larger planes. The minister said Air India’s widebody plane order and IndiGo’s twin-aisles to some destinations were signs that “transition” had begun.

He stated India is working towards handling the transportation needs of its 1.3 billion population by building new airports in the country’s remotest parts and expanding capacity at major ones.

Domestic and international passenger traffic through six major metro airports is expected to more than double to 420 million over the next five years and India’s fleet is set to grow to over 2,000 planes from 700 today, Scindia said.