Evaluation of Growth in Air Passenger Traffic in India

Abstract

Indian Aviation Industry is one of the fastest-growing aviation industries in the world. As per the International Air Transport Association (IATA) forecasts, India is likely to surpass the United Kingdom and will become the 3rd largest aviation market in the world by 2024-25. In India, during FY 2006-2019, the passenger traffic (domestic and international) grew at CAGR of 12.64% and with growth in the middle-class population, it is expected to grow exponentially shortly. In this paper, we have examined the reasons responsible for the rise in passenger traffic in India. We have also attempted to study past growth trends in air passenger traffic (domestic and international). We will examine factors such as an increase in the middle-class population, an increase in disposable income of individuals, aspiration of population, growth in tourism, better airport infrastructure, favorable investment policies including RCS-UDAN by Government of India (GoI), and their impact on growth in air passenger traffic. We will also attempt to investigate the impact of the recent COVID-19 pandemic on the growth of air passenger traffic and other major issues or challenges affecting the growth in passenger traffic in India