According to Air India's chief commercial officer and transformation officer Nipun Aggarwal, only 40 of India's 160 airports are operating at 70-80 per cent capacity, while the remaining 120 airports outside major metropolitan centres have 'very low' utilisation rates. Speaking at a panel discussion organised by GE Aerospace India, Aggarwal attributed this problem to inadequate regional connectivity and emphasised that the country had done well in building airports but needed to ensure that the infrastructure was put to better use. He noted that improving air connectivity beyond major metropolitan centres would be necessary to attract more passengers to these airports.
Aggarwal emphasised that the next phase of aviation expansion would require airlines to look beyond their existing networks, particularly towards smaller cities. He explained that Air India's current network is largely focused on major hubs, or airports through which passengers connect to other destinations. The executive suggested that regional jets could eventually play a role in expanding airlines' presence in Tier-2 and Tier-3 cities, as these passenger aircraft are smaller than conventional narrow-body planes and suitable for routes where demand may not support larger aircraft. Aggarwal noted that regional jets could be deployed to connect Tier-2 cities as airlines expand their networks, making air travel more accessible to smaller cities.
Aggarwal stated that India's aviation market could grow substantially faster if flying became more affordable, citing high taxation as a major obstacle. He noted that aviation continues to be treated as a luxury despite potential demand from people currently travelling by other modes of transport. According to his figures, around 10 million people travel by train daily, compared with only 400,000-500,000 air passengers. He argued that a large pool of travellers could potentially consider flying if air travel became more affordable, stating that if the cost of flying per hour could be made more affordable, there would be disruptive growth in the industry. However, he did not identify specific taxes that should be reduced or suggest how much airfares would need to fall.
On international operations, Aggarwal highlighted significant room for expansion in the long-haul market, which carries 25-30 million passengers annually but accounts for more than half of the aviation market's revenue base. He noted that Indian carriers currently hold less than 20 per cent of this market, with a substantial share of passengers travelling to long-haul international destinations depending on foreign airlines and overseas connecting hubs. Despite airspace closures affecting international operations, particularly on routes to the west of India, Aggarwal maintained that these challenges are temporary and do not change the longer-term growth potential of Indian aviation. He estimated that the long-haul market is more than 50 per cent of the revenue base, even though it represents less than 20 per cent of overall passengers in the Indian aviation market.
