8NOVEMBER, 2024TOP STORIESINDIA'S AVIATION BOOM CAN SUPPORT ANOTHER INTERNATIONAL HUB: AIR INDIA CEOIndia's airline industry is experiencing rapid growth, leading to speculation by Campbell Wilson, CEO of Air India Ltd., that the country could support at least one additional international hub apart from Mumbai and Delhi.Wilson stated, "India can be home to at least three hubs and plenty of point-to-point services," emphasizing the unique flow patterns within India and its strategic geographical location.With a burgeoning consumer class and robust economic expansion, India is poised to become one of the world's largest travel markets. The country's leading carrier, IndiGo, and emerging airline Akasa, along with other airlines, have collectively ordered over 1,100 aircraft, with investments exceeding $12 billion allocated for the construction of more than 72 new airports by 2025.Air India, in particular, has witnessed significant fleet expansion, with the delivery of one new aircraft every six days over the past six months. The airline is set to continue this trend over the next year, receiving a considerable number of new Boeing 777s, Airbus A350s, and Boeing 737 Maxs.Wilson highlighted the historical underserving of the Indian market, noting that at the time of privatization, Air India had only 43 wide-body aircraft compared to significantly higher numbers in other markets like Singapore and Dubai.As part of the Tata Group's efforts to revitalize Air India, plans are underway to merge low-cost carriers Air India Express and AIX Connect into a single entity and to combine Air India and Vistara into another. The merger between Air India and Vistara has received approval from the Competition and Consumer Commission of Singapore, signaling progress in the restructuring efforts. VOLKSWAGEN TO EXPAND ITS PREMIUM PRESENCE IN INDIAThe rapid expansion of the highway network and the increasing purchasing power of consumers in India are driving up vehicle sales in the country, according to Michael Mayer, Volkswagen's executive director of international sales. He noted that India has surpassed Japan to become the world's third-largest vehicle market, a development that would have been unthinkable a decade ago.Mayer highlighted the impressive growth in India's automotive sector, with consumers showing an inclination towards not just smaller, cheaper cars but also larger and premium vehicles. He attributed this trend to improved infrastructure, increased road trips, and a growing demand for comfortable travel experiences with families.India's highway expansion efforts, which are set to add 13,814 km of highways this fiscal year, have contributed significantly to the growth of the automotive market. Mayer pointed out that India's total highway network length now exceeds that of Germany, which has a little over 13,000 km of highways.In 2023, new vehicle sales in India, including passenger vehicles and commercial vehicles, increased by 7 percent to 5.07 million units, surpassing Japan for the second consecutive year. Mayer expressed optimism about India's automotive market, projecting a growth rate of 5-7 percent this year, and reiterated Volkswagen's commitment to the Indian market. He emphasized that Volkswagen will continue to introduce premium products in India over the coming years.
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