Reports suggest that Indian airlines like Air India and Indigo are strategically adding new aircraft to their fleet and launching new international routes thereby cutting down travel time.
According to the CRISIL report, Indian airlines have the advantage of excellent domestic connectivity compared to their foreign competitors, which serve only select Indian cities. This enables Indian carriers to offer end-to-end international connectivity to passengers from Tier 2 and Tier 3 cities on a single ticket.
“Rising disposable incomes, easing of visa requirements, increasing number of airports and increased air travel connectivity are boosting international travel,” said Manish Gupta, senior director and deputy chief rating officer, CRISIL Ratings.
The government's focus on making India a tourism hub is also expected to boost inbound traffic.Ankit Kedia, Director, CRISIL, said, “To capitalize on the growth in international travel, Indian airlines are investing in widebody and long-haul narrowbody aircraft for network expansion, adding new international routes and long-haul routes to key destinations.” Launching long distance non-stop flights." Rating.
Thus, international passenger traffic is likely to register a compound annual growth rate (CAGR) of 10-11 per cent in the next four financial years, compared to 5 per cent CAGR in the four years before the pandemic, he said.
Indian airlines have added 55 new international routes in the last 15 months, taking the total number of flights to over 300, the report said.
These include direct flights originating from more cities to popular long-haul destinations in the United States, Europe and Australia, effectively reducing flight times and eliminating layovers, CRISIL said.
The report said India's geographical location between Europe, the Middle East, Africa (EMEA) and Asia Pacific regions will help the country emerge as a hub of international travel.
According to the CRISIL report, Indian airlines have the advantage of excellent domestic connectivity compared to their foreign competitors, which serve only select Indian cities. This enables Indian carriers to offer end-to-end international connectivity to passengers from Tier 2 and Tier 3 cities on a single ticket.
“Rising disposable incomes, easing of visa requirements, increasing number of airports and increased air travel connectivity are boosting international travel,” said Manish Gupta, senior director and deputy chief rating officer, CRISIL Ratings.
The government's focus on making India a tourism hub is also expected to boost inbound traffic.Ankit Kedia, Director, CRISIL, said, “To capitalize on the growth in international travel, Indian airlines are investing in widebody and long-haul narrowbody aircraft for network expansion, adding new international routes and long-haul routes to key destinations.” Launching long distance non-stop flights." Rating.
Thus, international passenger traffic is likely to register a compound annual growth rate (CAGR) of 10-11 per cent in the next four financial years, compared to 5 per cent CAGR in the four years before the pandemic, he said.
Indian airlines have added 55 new international routes in the last 15 months, taking the total number of flights to over 300, the report said.
These include direct flights originating from more cities to popular long-haul destinations in the United States, Europe and Australia, effectively reducing flight times and eliminating layovers, CRISIL said.
The report said India's geographical location between Europe, the Middle East, Africa (EMEA) and Asia Pacific regions will help the country emerge as a hub of international travel.
