India has become the third largest market for domestic traffic, but the penetration of international air travel remains low, according to CAPA India chief Kapi Kaul. He emphasized the need for regulatory reforms to address this issue and warned that if corrective measures are not taken, the capacity pipeline will reduce further. Kaul made these statements while delivering the keynote address at an event organized by the JRD Tata Memorial Trust to mark the 119th birth anniversary of JRD Tata.
Kaul highlighted that India’s seats per capita consumption for international air travel is significantly lower compared to countries like Australia. He expressed confidence in the long-term growth potential of the aviation industry in India, stating that the country has only scratched the surface of international travel.
Kaul also praised the privatization of Air India two years ago as a “landmark reform” that has set domestic aviation on a promising path for the future. He pointed out that over the 15 years leading up to FY19, international passenger volumes at Indian airports grew at a rate of 10 percent, reaching 69.5 million, which is 4.2 times higher than in 2004.
In order to continue this growth trajectory, Kaul emphasized the need to strengthen institutions such as the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS). He called on the government to implement bold reforms to ensure a smooth flight into the future for the Indian aviation industry.
