India has the potential to support at least five major airlines: Civil Aviation Minister Ram Mohan Naidu

Civil Aviation Minister Ram Mohan Naidu | Photo credit: BHAWIKA CHHABRA

India’s booming aviation sector has the potential to support at least five major airlines, Union Civil Aviation Minister Ram Mohan Naidu said in an exclusive conversation with business line.

In 2024, India’s total air passenger traffic grew by 7.72 percent to 23.28 crore, compared to 21.61 crore passengers in 2023.

“We have not only doubled the number of airports in the last 11 years, we have also doubled passenger traffic during this period,” Naidu said, adding that India is no longer a small aviation market.

“The current growth momentum of the sector has the potential to support at least five major airlines in the country with an average fleet size of more than 100 aircraft.”

According to the minister, new policy measures such as amended UDAN, the development of new airports and the expansion and democratization of air traffic will attract newer players to the market.

Currently, the Indian market faces a duopoly: IndiGo with a market share of about 65 percent and the Air India Group with about 27 percent.

Asked about the duopoly, the minister said that other airlines are also trying to expand capacity by acquiring more aircraft.

“Our airlines have more than 1,700 aircraft on order; we need more aircraft to meet the growing needs of air travelers,” he said, citing that policies such as a modified UDAN will also lead to the development of helipads and smaller airports, especially in the northeastern region of the country.

On the need for more pilots and skilled manpower to support the growth of the sector, the minister called for the formation of more FTOs (flight training organizations) and “more importantly, the FTOs that provide quality training.”

Recently, Minister Naidu launched a performance-based ranking framework for FTOs across the country, effective from October 1, 2025.

“None of the FTOs have achieved the highest marks. This is a concern, we only have 40 in the country.”

It is estimated that India will need 30,000 more pilots in the next 15 to 20 years, compared to the current 6,000 to 7,000 working pilots.

Moreover, the minister pointed out that having more airlines will also keep airfares under control and that “competition in the market will bring passengers the best possible deals.”

Airfares in India are deregulated, meaning they are determined by the market forces of supply and demand. However, airlines are required to publish their fare buckets or reservation booking designations (RBDs).

These price segments are monitored by the Tariff Monitoring Unit (TMU), established by the aviation regulator, the Directorate General of Civil Aviation (DGCA).

Explaining the initiative to control airfares, the minister said the Center has strengthened the TMU.

“We have deployed technology to closely monitor anomalies, such as a substantial increase in airfares. We have added more routes to the TMU watch list.”

Moreover, he said the ministry will also monitor the functioning of OTAs (online travel agencies) as these are the main means through which airline tickets are booked.

Currently, almost 80-82 percent of online flight tickets are booked through OTAs (estimate based on industry data).

Minister Naidu shared that the ministry’s passenger complaint portal, AirSewa, has been upgraded to allow passengers to register complaints related to air tickets.

In addition, the minister inaugurated the ‘Fare Se Fursat’ program of the state-owned Alliance Air.

Thanks to this initiative, airfares on certain Alliance Air routes will remain fixed regardless of the booking date, even up to the day of departure.

The scheme is being implemented as a pilot and will remain in force until December 31, 2025.

More like this

Published on October 19, 2025