Stagnant Growth and Missed Opportunities
India's widebody aircraft fleet has remained stagnant over the past 15 years, a stark contrast to the expanding fleets of international carriers like Emirates, Qatar Airways, and Singapore Airlines. This disparity has allowed these foreign airlines to efficiently transport a substantial volume of international passengers to and from India through their one-stop flight services.
This lack of growth in India's widebody fleet has resulted in missed opportunities for the country's aviation sector. Despite a significant increase in India's GDP and GDP per capita, the capacity for long and ultra-long haul flights has remained virtually frozen. This has limited the potential for India to become a major hub for international travel.
Currently, Indian carriers operate only 67 widebody planes, which is less than 10% of their total fleet. In comparison, Emirates and Qatar Airways operate 260 and 216 widebody planes, respectively. This difference in capacity has allowed foreign airlines to capture a significant portion of the international travel market to and from India.
The lack of widebody aircraft has also impacted the pricing dynamics in the Indian aviation market. Indian passengers are price-sensitive when it comes to traveling on Indian carriers, but less so when it comes to foreign carriers. This suggests that Indian carriers have an opportunity to achieve a price premium in their home market by offering non-stop connectivity and improved product and service quality.
To address these challenges, Indian carriers need to take several steps. They need to overhaul their commercial capabilities to effectively sell seats on long-haul flights. They also need to rebalance their international passenger mix to attract more passengers from overseas. Additionally, they should re-assess their corporate travel programs to ensure they are offering the right incentives and benefits to attract corporate customers.
By taking these steps, Indian carriers can reclaim market share from foreign airlines and establish India as a major hub for international travel. This will not only benefit the aviation sector but also contribute to the overall economic growth of the country.