Business

There are unexpected places where airlines are making a big comeback.

Air India had been mired in debt and under-funded state management for decades. No-one wanted even a piece of the iconic but loss-making carrier.

There are unexpected places where airlines are making a big comeback.

There are unexpected places where airlines are making a big comeback.

However, a deal was made in 2021, right as the outbreak was ending and airlines were placing large bets on retaliation travel after borders reopened.

They were accurate. The recovery has really begun, and air travel is off to a fantastic start in 2024. There have been forecasts of weaker growth in the US, where post-pandemic expenditure is anticipated to level down. However, in Asia, on the opposite half of the planet, things are not the same.

At a recent aviation event in Singapore, Campbell Wilson, the CEO of Air India, told the BBC, “If we look at the size of the opportunity in India, it’s already the world’s most populous country.”

Its geographic benefit lies in its ability to link different parts of the planet. Furthermore, the market is severely underserved.

According to aircraft manufacturer Airbus, India’s domestic aviation market is predicted to grow five times by 2042, with approximately 685 million journeys taken by Indians annually. That would rank the South Asian country third in the world, behind China and the US, for the fastest-growing civil aviation markets.

It extends beyond India. Analysts anticipate that Indonesia, which is currently ranked 13th in the world in terms of passenger numbers, will rise to fourth place by the middle of the century. In the upcoming decades, air travel is also anticipated to soar in the Philippines, Thailand, and Vietnam.

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All of these are developing nations with young, expanding populations that have the means to travel. Global air traffic increased by 16% in the past year, and the evidence is in the data. However, industry estimates indicate that the increase was nearly twice as large in Asia.

In order to increase connectivity—which is crucial in large archipelagos like Indonesia and the Philippines—the governments in these regions are also making infrastructural investments.

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