Mon Dec 23 08:14:51 UTC 2024: ## Indian Aviation Sector Soars in 2024, Faces Challenges Ahead

**New Delhi/Mumbai, December 23, 2024** – The Indian aviation sector experienced a year of significant growth and transformation in 2024, marked by mega-mergers, record passenger numbers, and new airline launches, while also grappling with supply chain issues and safety concerns.

The year saw the completion of two major mergers: Air India’s acquisition of Vistara, creating a behemoth with over 120,000 daily passengers, and the integration of Air India Express and AIX Connect. These mergers, along with Air India’s massive order for 100 more Airbus aircraft (adding to an existing order of 470), solidify the Tata Group’s ambition to build a world-class global airline. IndiGo, celebrating its 18th anniversary, also expanded its international reach and placed a substantial order for wide-body aircraft. Conversely, Jet Airways’ liquidation was finalized after five years of grounded operations.

Despite the positive developments, challenges remain. Supply chain disruptions, Boeing issues, and engine problems continue to hamper aircraft deliveries. The sector also faced a surge in hoax bomb threats, with 999 reported incidents by November 14th. Safety concerns were also raised with several trainer aircraft crashes and a fatal roof collapse at Delhi’s Terminal 1. Furthermore, the virtual duopoly of IndiGo and the Air India Group, controlling over 90% of the domestic market, raises concerns about competition.

Looking ahead to 2025, the sector anticipates continued growth, with projected domestic air traffic reaching 164-170 million passengers. The focus will be on expanding wide-body aircraft fleets, increasing international connectivity, and establishing India as a global aviation hub. Two new airports, Noida and Navi Mumbai, are expected to open, easing congestion at Delhi and Mumbai. The recent passage of the Bharatiya Vayuyan Vidheyak 2024 aims to modernize regulations and boost domestic aircraft manufacturing. While the prospects are deemed “exceptional” by industry leaders, navigating these challenges will be crucial for sustained growth in the years to come.

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