Indian airlines fly high in Q3 — experts see an even brighter future

Indian airlines have seen substantial growth during the July-September quarter, fuelling optimism about the exponential growth and positive developments in the sector, said Vikram Rai, the CEO of GE Aerospace. Rai was speaking at an expert panel discussion at the US-India Business Council meeting in New Delhi on Tuesday, October 17.

The panel discussion also included Arun Kumar, Managing Partner at Celesta Capital, and Kami Viswanathan, President - Middle East, Indian Subcontinent and Africa (MEISA) Operations, FedEx.

According to Rai, the surge in the aviation industry can be attributed to the projected expansion of the Indian middle-class population, set to reach 440 million — which is expected to drive domestic air travel growth. He said the next phase of growth for Indian civil aviation is expected to be driven by the use of wide-bodied aircraft.

GE Aerospace's Rai underlined India's role as a global hub for the aviation industry and the sharp increase in the number of suppliers from the country.

"We have 1,000 engineers, 13 suppliers. Three aircraft with GE and partner engines will be delivered per week, to India, over the next few years. Our aerospace sourcing from India has grown 20 times in the last few years," Rai said, adding that "air taxis are the way to go as part of the aviation sector growth."

Rai's optimism is strengthened by the recent amendments to the Insolvency and Bankruptcy Code (IBC), which address the concerns of investors and contribute to the perception that India is a secure place to invest in assets.

Experts believe that artificial intelligence (AI) will play a pivotal role in the future of the aviation industry.

Celesta Capital’s Kumar highlighted the need for enabling guidelines on AI to fully harness the growth as the industry faces challenges such as the need to expand aircraft parking space and landing spots across various airports in India. The implementation of deep tech, technology-enabled transformation, and the Internet of Things (IoT) are the priority areas for Celesta Capital.

FedEx's Vishwanathan emphasised the importance of smarter supply chains.

"Indian companies must focus on smarter supply chains which can predict bottlenecks and help in decarbonisation... see a strong growth orientation in India and an innovation ecosystem... Would like to innovate and leverage Indian talent for FedEx operations around the world," she said.