India Becomes the 5th Largest Aviation Market Globally in 2024

Main conclusions of the report

IATA reports that India experienced an 11.1 percent increase compared to 2023, surpassing Japan, which managed 205 million passengers.

In 2024, the US continues to be the largest aviation market globally, with 876 million passengers, an increase of 5.2 percent compared to the previous year.

China ranked as the second-largest passenger market, with 741 million travelers, reflecting an 18.7 percent increase compared to 2023.

The UK ranked 3rd with 261 million passengers, while Spain ranked 4th with 241 million.

The numbers encompass all international and domestic travelers entering or leaving each nation.

Airport Pair Evaluation:

The Asia-Pacific region led the rankings for the busiest airport pairs.

Jeju–Seoul (South Korea) ranked as the top global route with 13.2 million travelers.

Mumbai–Delhi secured the 7th position worldwide with 5.9 million travelers.

Fundamental Elements of Aviation Change

Legislative Changes for Fundamental Transformation:

The Protection of Interest in Aircraft Objects Bill, 2025 aligns India's aircraft leasing framework with the Cape Town Convention, lowering leasing expenses and enhancing investor trust.

Bharatiya Vayuyan Adhiniyam, 2024: Substitutes the colonial-era Aircraft Act of 1934. It promotes Make in India, streamlines licensing, and aligns guidelines with international benchmarks such as the Chicago Convention and ICAO standards.

Growth of Infrastructure and Enhancement of Capabilities:

Terminal Enhancements: Groundwork established for new terminals in Varanasi, Agra, Darbhanga, and Bagdogra.

Greenfield Airports: 12 have become operational since 2014 (e.g., Shirdi, Mopa, Shivamogga), with Navi Mumbai and Noida (Jewar) expected to begin operations by early 2025–26.

CAPEX Investment: ₹91,000 crore designated for National Infrastructure Pipeline (NIP); ₹82,600 crore utilized by Nov 2024.

Infrastructure Growth

Government Programs to Aid the Aviation Industry

UDAN Scheme: Improves regional air connectivity by making air travel economical for ordinary people.

National Civil Aviation Policy (NCAP): Supports MRO, airport expansion, and aircraft leasing in India.

Green Airports Policy: Promotes renewable energy adoption, waste minimization, and carbon neutrality goals.

Future Direction for Fuel Pricing Reform: Make air travel more affordable by rationalising state-by-state Aviation Turbine Fuel (ATF) taxes.

Sustainability Focus: Promote electric aircraft, carbon offsets, and Sustainable Aviation Fuel (SAF).

Training and Skilling: Through organisations like the National Aviation University, increase the scope of aviation skill development initiatives.

International Hub Strategy: Construct full-service international hubs at a few Indian airports to compete with Singapore, Dubai, and Doha.