India becomes world’s 3dr largest domestic aviation market

New Delhi: India has emerged as the world’s third-largest domestic aviation market, following the United States and China.

This development is based on data from aviation analytics firm Official Airline Guide (OAG), highlighting significant growth in India’s aviation sector due to the expansion of fleets by airlines such as IndiGo and Air India.

According to OAG, India’s domestic airline capacity has seen a remarkable increase over the past decade, doubling from 7.9 million seats in April 2014 to 15.5 million in April 2024. This growth has propelled India past Brazil, which now holds the fourth position with 9.7 million airline seats, and Indonesia, which ranks fifth with 9.2 million seats.

India has posted the highest annual average capacity growth rate among the top five countries over the last decade, at 6.9 percent. This is followed by China at 6.3 percent and the United States at 2.4 percent.

IndiGo and Air India, with over 1,000 planes on order combined, dominate the Indian market, accounting for 90 percent of domestic seats. OAG noted that India’s shift to low-cost carriers (LCCs) has been the most pronounced among the top five aviation markets.

In April 2024, LCCs made up 78.4 percent of India’s domestic capacity. This is significantly higher compared to other major markets, with Indonesia at 68.4 percent, Brazil at 62.4 percent, the US at 36.7 percent, and China at 13.2 percent.

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