India has emerged as the third largest market for domestic air travel, but the penetration of international air travel lags behind, according to Kapi Kaul, the chief of CAPA India. Kaul emphasized the need for regulatory reforms and warned that without corrective measures, the capacity pipeline for international air travel could further diminish.
Speaking at an event organized the JRD Tata Memorial Trust, Kaul highlighted the low penetration of international air travel in India, despite its ranking as the third-largest domestic market. He pointed out that India’s seats per capita consumption is significantly lower than that of countries like Australia.
Kaul expressed optimism about the long-term growth prospects of Indian aviation, stating that the country has only scratched the surface of international travel. He predicted that as India’s economy grows, its aviation sector will also expand, potentially rivaling the size of the United States.
The privatization of Air India, which occurred nearly two years ago, was lauded Kaul as a landmark reform that has set the stage for a promising decade for Indian aviation, particularly in conquering international markets.
Highlighting the impressive growth in international passenger volumes at Indian airports over the past 15 years, Kaul emphasized the need to strengthen regulatory institutions such as the Directorate General of Civil Aviation and the Bureau of Civil Aviation Security. He called on the government to implement bold reforms to ensure a smooth flight into the future.
Overall, Kaul’s remarks underscored the opportunities and challenges facing the Indian aviation industry, as it seeks to expand its presence in the global air travel market.