The Union Government will continue its focus on expanding air connectivity and airport infrastructure in India. Addressing the Parliament on vote on account on Thursday, February 1, Union Finance Minister Nirmala Sitharaman said, "The aviation sector has been galvanised in the last 10 years. The number of Airports have been doubled to 149. Rollout of connectivity to tier-2 and tier-3 cities under the Udan scheme have been widespread. 517 udan routes are carrying 1.3 crore passengers."
"Expansion of existing airports and development of new airports will continue expeditiously. Indian carriers together have placed an order of 1000 new aircraft," she added.
At the Paris Air Show 2023, India's largest airline in terms of market share and fleet size IndiGo, placed an order of 500 Airbus aircraft. The order by IndiGo is the largest order of commercial aircraft in the history of aviation. Before IndiGo, Tata Sons owned Air India placed an order of 470 aircraft with Airbus and Boeing.
As per Union Civil Aviation Minister Jyotiraditya Scindia, India added 70 airports in the last 10 years, taking the total to 149 airports. The government envisions to have 200 airports and 2000 aircraft in India in years to come.
Vinay Dube, Founder and CEO, Akasa Air said, “The Interim Budget presented by Hon’ble Finance Minister is a fine reflection of new India and will strengthen India’s position as a global economic powerhouse. We would like to acknowledge the government’s efforts towards galvanising the nation’s aviation industry, by doubling the number of airports and fostering holistic air connectivity that enabled 1.3 crore Indian citizens to travel by air. The focus on inclusive and sustained growth is a welcome move and will catalyse India’s progress."
"As India’s fastest-growing airline with an orderbook of over 200 aircraft, we are energised by the government’s continued focus on enhancing air transport infrastructure to make air travel accessible for a greater number of Indians.”
Shamsher Dewan, Senior Vice President & Group Head - Corporate Ratings, ICRA Limited said, "The Interim Budget for FY2024-25 has reiterated its focus on improving air connectivity through airport infrastructure development, given the growing air traffic demand especially in tier-2 and tier-3 cities. New routes offered by airlines, coupled with large aircraft orders to cater to growing air travel demand will further boost domestic air travel."
"The budget also provides a thrust on promotion of tourism with focus on business and conference tourism in lines of the recently concluded G20 summit to attract international tourists. Tourist destinations covering specialized areas like spiritual tourism will also support regional air travel under the UDAN scheme."
"Domestic passenger traffic has recovered to ~114 million in 9mFY2024 and is likely to grow by 8-13% in FY2024 over FY 2023 to surpass pre-covid levels. ICRA's outlook remains stable aided by fast-paced recovery in domestic passenger traffic, along with improved pricing power witnessed by the industry players as well as easing in ATF prices."
In response to the Budget 2024 announcement, Prakash Bedi, Vice President of Clarks Safari said, "The government's commitment to advancing rail and air infrastructure is commendable. The introduction of 517 new routes, catering to 1.3 crore passengers, has significantly revitalised domestic travel. The substantial orders for 1,000 new aircraft by Indian carriers reflect the escalating demand in the aviation sector. With the growing affluence of the Indian middle class, we anticipate a further surge in domestic tourism in the days to come."
