India

Championing regional air mobility in India

In a remarkable event held in New Delhi this week, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Ministry of Civil Aviation, experts and key decision makers from the Indian aerospace industry came together to share a round-table discussion on how to best unlock the country’s immense regional aviation potential.

With Civil Aviation Minister Kinjarapu Rammohan Naidu and other senior members of the Ministry of Civil Aviation in attendance, ATR’s SVP Commercial Alexis Vidal had the opportunity to highlight the essential role of regional aviation to meet the Indian communities’ travel needs and advocated for increased point-to-point links between secondary and tertiary cities, to support the Indian government’s UDAN initiative.

Many Indian passengers are first-time travelers, who choose air transport over slower or less comfortable options such as trains or buses, which also makes them very price sensitive. In such a low-fare environment, with a pressing need to join secondary population centers, and a burgeoning middle-class asking for affordable connectivity, ATR aircraft provide an excellent business case, offering the lowest cost per trip and unmatched fuel efficiency compared to similar-size regional jets.

As India stands as the world’s fastest growing aviation market, it is also ATR’s second largest market globally, boasting a fleet of 70 aircraft, operated by Indigo, Alliance Air and Fly91.

Key messages included:

Importance of the regional market segment: 90% of intercity trips by all modes (90 million trips per week) are within the 100-400NM range, highlighting the crucial nature of this segment to Indian travel needs.
Air Travel Potential: Presently, only 3% of trips within the 100-400NM range are conducted by air, indicating significant room for growth in air travel penetration.
Catching up with existing demand: Levels of already existing regional intercity travel going by ground indicate that there is an untapped potential of 80 million additional air passengers per year, which could be served by increasing flight frequencies on existing routes and creating new air connections.
Expanding Airport Accessibility: With 40% of intercity trips originating from areas lacking active airports, there is a notable opportunity for the expansion of air infrastructure.

ATR’s sole sponsorship of the event on behalf of the Indian Government and FICCI underscores a shared commitment to bolstering regional connectivity in India, setting the stage for a future where air travel becomes a primary, responsible and affordable mode of intercity transportation, fostering economic growth and societal development nationwide.