Trends that will shape the Indian aviation industry in 2023

This year has been a very eventful year for the Indian aviation industry. Almost every major airline has made headlines for reasons ranging from the celebratory to the downright disappointing. But scratch the surface, and most of these stories contain trends (some new, some new) that start new conversations, change old perceptions, or simply signal things to come. You can see that some existing ones are also included.

Large orders herald aviation spring

Two of the most defining moments this year were when Air India and IndiGo placed orders for a large number of aircraft (about 1,000 in total). India’s aviation industry is often said to be the next big thing after the US and China, and Air India’s orders for 470 planes and IndiGo’s 500 planes have certainly accelerated that story.

While deliveries of these aircraft spanned several years, IndiGo and Air India continued to add aircraft to existing orders and through dry or wet leases. And now we’re ready for mass adoption.

Social media posts were updated regularly for flight attendant fly-in interviews and pilot roadshows. The industry, hit hard by the pandemic, was unable to quickly fill many positions well into 2023. Recruitment fever was so high that many Go First pilots, who found themselves in difficult situations after the airline’s grounding, were absorbed by other airlines within the company for several weeks.

Market duopoly?

In the early 2000s, low-cost airlines like IndiGo, SpiceJet, and Go First emerged and democratized the nation’s flying habits by making them affordable for millions of first-time flyers. In some ways, they have increased competition and destroyed the dominance of a small number of full-service airlines.

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And while planes today are undoubtedly more pocket-friendly than they were 20 years ago, IndiGo has surpassed 60% of the market share this year, with almost 30% jointly owned by the Tata Group of airlines. I can see why some people think that, given the fact that Worried. Will this lead to arbitrary practices or will other airlines step up this effort? Only time will tell.

Boeing regains lost ground in narrowbody segment

There was a time when the Boeing 737 had a huge presence in India. But once IndiGo dominated the market with its Airbus A320, and Air India and Go First also launched similar aircraft, the 737’s numbers became less impressive. The fact that major 737 operators such as Jet Airways went bankrupt and SpiceJet grounded several of the aircraft did not help either.

Photo: Air India Express

However, there was a milestone last year when Akasa ordered 72 737 MAX aircraft, and this year Air India has ordered 190 MAX aircraft for Air India Express, making it possible for the same aircraft to lose ground. I plan on getting it back. Akasa has said it will soon place a large triple-digit order, likely for the MAX, which means more 737s are expected to be introduced at Indian airports in the coming years.

Debate intensifies over pilot fatigue

Unpleasant conversations about pilot fatigue surfaced in August when three pilots, two of them Indian, suddenly died within days of each other. There were reports that hundreds of commercial pilots were planning to form an association to combat irregular flight schedules.

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India’s aviation watchdog, DGCA, has taken note of this and is considering proposing new rules to reduce night work hours and increase rest time for Indian pilots. IndiGo has also taken several steps to address the situation and conducted trials of technology consisting of wrist and ground devices that could help detect the pilot’s alertness level. A commercial pilot’s job will never involve a 9-to-5 routine, but it will likely mandate more flexible work hours.

Reviving grounded airlines remains nearly impossible

India’s infamous tag of being an airline graveyard remained intact even as other airlines bowed to the pressure. Go First ceased operations in May after months of financial strain compounded by the grounding of many aircraft due to P&W engine supply issues.

Photo: John1107 | Shutterstock

There have been several attempts to resume operations in recent months, but Go First’s path to revival has been similarly difficult, similar to that of previously bankrupt airlines such as Kingfisher Airlines and Jet Airways. appear. Even Jet is struggling to rebuild its operations, reaffirming the long-held belief that it is extremely difficult to rebuild an airline after bankruptcy.

Indian Airlines resilience

India’s size gives airlines a solid opportunity in the country, and the overall recovery in passenger numbers proved how resilient the sector is despite some challenges. . Passenger demand remained strong throughout the year and exceeded pre-pandemic levels. On November 19, more than 450,000 passengers took to the skies. This was the highest daily air traffic volume since COVID-19 and 7.4% above pre-pandemic levels.

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IndiGo has recorded two consecutive quarters of profit this fiscal year and, like Vistara and Air India, has significantly expanded its domestic and international footprint. Sixty new regional routes were also created, and three greenfield airports were brought into operation. In fact, India has successfully shaken off the lingering effects of the pandemic.

A credible challenge to IndiGo

No one is under any illusions that any airline currently poses a serious threat to IndiGo’s position as India’s leading airline. But for the first time in years, it seemed like there might be an airline powerful enough to match its size and ambitions in the near future.

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Tata Group-backed Air India aims to capture 30% of India’s domestic market, while also looking to expand its share on some of its most ambitious long-haul routes. I am. However, as we have seen, IndiGo is not one to rest on its laurels and is already showing signs of deviating from its traditional business strategy, including experimenting with wide-body aircraft and considering a premium class for the A321. . The stage seems to be set for a fierce battle between the two airlines over the next few years.

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