India's aviation industry is witnessing a significant expansion, leading globally in airplane purchases with over 1,000 jets ordered this year. The country's investment in its aviation infrastructure has been substantial, with new airports emerging nationwide, and Indira Gandhi International Airport in New Delhi is on track to become the world's second busiest airport.
Despite these advancements, regular air travel remains inaccessible for about 97% of Indians due to high costs. This issue highlights the need for profitable growth in the sector over the next few years, as pointed out by CAPA India.
The Tata Group has played a crucial role in the industry's development, having privatized Air India and placed large orders with Airbus and Boeing (NYSE:BA). However, profitability in the sector remains elusive, even for key beneficiaries like Boeing and Airbus.
Smaller airports such as Darbhanga are revolutionizing local travel despite their basic facilities. GMR Airports has overseen significant improvements at Indira Gandhi International Airport since 2006. IndiGo, India's largest carrier, has also placed substantial orders for new planes.
Under Prime Minister Narendra Modi's government, the number of airports has doubled, with Aviation Minister Jyotiraditya Scindia promising further expansion. Notable developments include the all-bamboo Terminal 2 at Kempegowda International Airport in Bengaluru.
However, smaller airlines like Akasa Air are facing difficulties due to pilot shortages. The bankruptcy of Go First further underscores the sector's challenges.
A report by CAPA India emphasizes the low passenger seats per capita in India compared to China and America, suggesting potential for further growth in the sector.
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