An Analysis of Air Transport in India

References

[1] Alderighi M, Cento A, Nijkamp P, Rietveld P (2004). The entry of low-cost airlines: Price competition in the European airline market. Tinbergen Institute Discussion Paper No. 04-074/3.

[2] Alderighi M, Cento A, Nijkamp P, Rietveld P (2005). Network competition – the coexistence of hub-and-spoke and point-to-point systems. Journal of Air Transport Management, 11(5), 328–334.

[3] Anfofum AA, Saheed ZS, Iluno C (2015). Air transportation development and economic growth in Nigeria. Journal of Economics and Sustainable Development, 6(2).

[4] ASCI Research and Consultancy (2009). Competition issues in the air transport sector in India. ASCI Research and Consultancy.

[5] Brueckner JK (2002). Airport congestion when carriers have market power. American Economic Review, 92(5), 1357–1375.

[6] Brueckner JK (2008). Slot-based approaches to airport congestion management. Working paper.

[7] Burghouwt G, Hakfoort J, Ritsema van Eck J (2003). The spatial configuration of airline networks in Europe. Journal of Air Transport Management, 9(5), 309–323.

[8] Dhawan B (2015). Geography of transport and trade. Anmol Publications, pp. 1–159.

[9] Gawali PM (2015). State transport in India: MSRTC. Himalaya Publishing House, pp. 1–10.

[10] Gibbs C (2014). Top 100 ranking airports: Global mobile readiness index. Ted Rogers School of Management, Ryerson University.

[11] Huber H (2015). Network structure, capacity growth and route hierarchies: The case of China’s air traffic system revisited. Working Paper 2015-04-03, Indian Institute of Management, Ahmedabad.

[12] Huber H (2016). India’s air traffic system evolution and role of network structure. Economic and Political Weekly, 51(40).

[13] Ito H (2013). Incumbent responses to lower cost entry: Evidence from the U.S. airline industry. Paper presented at the Southern Economic Association Meetings.

[14] Jantachalobon N, Vanichkobchinda P (2013). A model of airport hub in Southeast Asia. Conference paper, I-SEEC 2013.

[15] Jin F, Wang F, Liu Y (2004). Geographic patterns of air passenger transport in China 1980–1998: Imprints of economic growth, regional inequality, and network development. The Professional Geographer, 56(4), 471–487.

[16] Martín JC, Voltes-Dorta A (2009). A note on how to measure hubbing practices in airline networks. Transportation Research Part E, 45(1), 250–254.

[17] Mootein NP (2012). Open sky policy for developing countries with emphasis on the small island developing states. Global Journal of Human Social Science, 12(4).

[18] Mukherjee A, Sachdeva R (2003). Maritime and air transport services: India’s approach to privatization. Transport and Communications Bulletin for Asia and the Pacific, 73.

[19] Natarajan L (2007). Marketing. Margham Publications, pp. 77–96.

[20] O’Connell JF, Williams G (2006). Transformation of India’s domestic airlines: A case study of Indian Airlines, Jet Airways, Air Sahara and Air Deccan. Journal of Air Transport Management, 12(6), 358–374.

[21] Reynolds-Feighan A (2010). Characterisation of airline networks: A North American and European comparison. Journal of Air Transport Management, 16(3), 109–120.

[22] Senguttuvan PS (2006). Fundamentals of air transport management. Excel Books, pp. 1–30.

[23] Shaw SL, Lu F, Chen J, Zhou C (2009). China’s airline consolidation and its effects on domestic airline networks and competition. Journal of Transport Geography, 17(4), 293–305.

[24] Thirunavukkarasu A, Nedunchezian VR (2015). An analysis on domestic airlines capacity performance in India. International Journal of Management, 6(12), 38–49.

[25] Transportation Research Board (1999). Entry and competition in the U.S. airline industry: Issues and opportunities. Special Report 255. National Research Council.

[26] Wei W, Hansen M (2006). An aggregate demand model for air passenger traffic in the hub-and-spoke network. Transportation Research Part A, 40(10), 841–851.

[27] Windle R, Dresner M (1999). Competitive responses to low cost carrier entry. Transportation Research Part E, 35(1), 59–75.

@article{1724427,
      author = {Vignesh M.},
      title = {An Analysis of Air Transport in India},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {10},
      number = {4},
      pages = {4423-4491},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1724427.pdf},
      abstract = {India’s air transport sector experienced rapid growth, structural transportation, and policy-driven expansion, positioning the country among the world’s fastest-growing aviation markets. Domestic passenger traffic arose sharply, supported by economic growth, rising middle-class incomes, and liberalisation measures such as the revised National Civil Aviation Policy and regional connectivity schemes. The significant increases in air fleet size, airport infrastructure development, and cargo volumes, alongside challenges including airline profitability, safety oversight, and infrastructural bottlenecks at major hubs.

Enables a comprehensive assessment of how India’s air transport evolved from post-crisis recovery to a high-growth, reform-driven phase in period of air transport.
This study examines the performance and structural dynamics of India’s air transport sector drawing on official statistics from the Ministry of Civil Aviation, Airports Authority of India (AAI), and industry reports. India’s aviation market exhibited robust growth, consolidating its position as one of the fastest-growing civil aviation markets globally. Total passenger traffic at Indian airports reached million, reflecting year-on-year increase, driven by strong domestic demand, expansion of low-cost carriers (LCCs), and rising disposable incomes. Domestic passenger traffic alone grew, continuing a decade-long compound annual growth rate (CAGR).

Aircraft movements, both domestic and international, also arose significantly, with total movements reaching millions. Freight traffic registered steady expansion, with domestic and international cargo growing at CAGRs. The period saw heightened private sector participation, fleet expansions by carriers like IndiGo, SpiceJet, and Air India, and infrastructural upgrades at major airports including Mumbai, Bengaluru, Chennai, and Kolkata.

The analysis further highlights operational metrics such as high average load factors, low cancellation rates, and persistent challenges including customer service complaints, infrastructure bottlenecks, and regulatory constraints. Policy initiatives such as the liberalised foreign direct investment (FDI) regime and regional connectivity schemes (e.g., UDAN, launched in late 2016) began to shape market access and route development.

Overall, marked a pivotal years in India’s air transport evolution-characterised by double-digit growth, increasing competition, and strategic investments-laying the groundwork for the country’s projected emergence as the world’s third-largest aviation market by upcoming year.},
      keywords = {aviation market; air fleet; freight traffic; aircraft; AAI; CAGR; LCC; air transport; FDI},
      month = {October},
  }