India'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.
