Indian Aviation Set for Major Growth in 2025, Despite Supply Chain Challenges
India’s aviation sector is poised for an exciting 2025, with significant developments on the horizon, including new aircraft, airlines, airports, and long-term plans for expanding connectivity. The year will see the aviation landscape marked by mergers, new airline takeoffs, expanded fleets, and the continued push to make India a global aviation hub.
A key milestone in 2024 was the completion of the Air India-Vistara merger, forming a major player in the Indian skies. The merger has created a full-service carrier and a low-cost carrier, marking Tata Group’s ambitious goal of building a world-class aviation company with an Indian identity. This has been complemented by Air India’s order for an additional 100 Airbus aircraft, bringing its total to 470 aircraft orders across Airbus and Boeing. India’s largest airline, IndiGo, turned 18 in 2024, marking the occasion with the introduction of business class on select flights. It continues to expand its international footprint with new routes and codeshare agreements. The airline also placed an order for 30 wide-body A350-900 aircraft, adding to its impressive order book of nearly 1,000 planes. However, the sector faces challenges as supply chain disruptions, Boeing issues, and engine problems delay aircraft deliveries. Despite this, the domestic air traffic forecast for fiscal 2025 is strong, with expectations of growth to 164-170 million passengers.
On the infrastructure front, two new airports—Noida and Navi Mumbai—are expected to be operational by 2025, alleviating congestion at Delhi and Mumbai airports. These developments are crucial as India’s air traffic continues to surge. While the future looks promising, there are concerns over the duopoly of IndiGo and Air India, which together control over 90% of the domestic market share. Smaller carriers like SpiceJet and Akasa Air face financial challenges and safety concerns but continue to make strides. Regulatory changes are also on the cards, with the passing of The Bharatiya Vayuyan Vidheyak 2024 to modernize the aviation sector and boost aircraft manufacturing in India. The industry remains focused on balancing growth with challenges such as hoax bomb threats, regulatory gaps, and pilot fatigue. In 2025, India’s aviation sector is expected to take off to new heights, offering more options for passengers while addressing the growing pains of a rapidly expanding industry.
