🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

India's aviation minister urges airlines to add more long-haul jets

Published 03/25/2022, 07:34 AM
Updated 03/25/2022, 07:36 AM
© Reuters. FILE PHOTO: A woman walks past Air India airlines branding at a park in Mumbai, India, October 19, 2021. REUTERS/Francis Mascarenhas/File Photo
BA
-
SINGY
-

By Abhijith Ganapavaram and Chandini Monnappa

HYDERABAD, India (Reuters) - India's civil aviation minister urged Indian airlines on Friday to add more long-haul aircraft to their fleets and to increase flights abroad, as air travel rebounds from a two-year slump due to the COVID-19 pandemic.

Domestic passenger numbers are expected to exceed pre-pandemic levels within one year, Jyotiraditya Scindia said during an air show in the Indian city of Hyderabad.

But foreign carriers dominate international routes to and from India, which industry experts say is partly because Indian carriers do not have enough widebody, long-haul planes.

"Along with our thrust on narrow body aircraft, we must also increase our fleet of wide body aircraft. It is not enough to connect all points in India, we need to connect the world to India," the minister said.

India's aviation market is dominated by narrowbody planes operated by low-cost carriers like IndiGo. In 2019, Indian airlines operated more than 550 narrowbody planes and less than 60 widebodies.

Only two Indian airlines fly to long-haul destinations - Air India, the former state-run carrier acquired by Tata Group, and Vistara, a venture between Singapore Airlines (OTC:SINGY) and Tata.

Middle Eastern, European and other carriers take the bulk of passengers from India leaving domestic airlines with a small share of the international market.

This is partly because Indian carriers do not have enough widebody planes to compete, Remi Maillard, president and managing director at Airbus for India and South Asia, said at the air show, making a pitch for the Airbus A350 long-haul jet.

Maillard said he expected-long haul travel from India to grow "massively" in the next decade which would drive demand for bigger planes.

© Reuters. FILE PHOTO: A woman walks past Air India airlines branding at a park in Mumbai, India, October 19, 2021. REUTERS/Francis Mascarenhas/File Photo

The European planemaker projected India would need 2,210 new planes to meet growing air travel demand over the next two decades, with widebody planes accounting for 440 of them.

Airbus' rival Boeing (NYSE:BA) Co now dominates the widebody market in India.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.