Increased air travel demand and expanding market opportunities in India: Is there a trend rising in order to stay agile and responsive to the competitive scenario?
The aviation industry in Asia is witnessing remarkable growth driven by a surge in air travel demand , and India has been playing an important role in this exponential growth.
Even though the country is still seen with skepticism by some investors, India’s recent signing of a rare free trade agreement with various countries in Europe, combined with the nation’s demographic advantages, are factors that will contribute to make the country more attractive from a strategic point of view.
According to Airbus' 20-year forecast, India is expecting to see a significant rise in air passenger traffic, positioning it as the third-largest civil aviation market. With a burgeoning market estimated to be worth $40 billion by 2027, and Indian consumers becoming more aspirational on their spending patterns, the country presents lucrative growth prospects that have already been understood by many aviation stakeholders - who are acting fast on it. IndiGo Airlines, for instance, has placed its first widebody order covering thirty A350-900s coming directly from Airbus, while Lufthansa has recently announced to be working towards a metal-neutral joint venture with Air India on routes between India and Europe. Various Indian airlines are announcing additional operations to Europe, and the pressure is real on European carriers. How to stay competitive against airlines that hold advantages when it comes to pricing, local expertise and local operational resources?
Local expertise and competitive pricing have become increasingly difficult for most European airlines to maintain on their routes to/from Asia, including India, and these are factors that have become paramount for the end customer. When discussing local expertise in India, where passengers truly see the value for money and expect the highest value-for-money service, it is not just about hiring a few local crew who comprehend local labor laws and languages. In a country like India - with a population of 1.4 billion, 28 states and 8 union territories, and thousands of spoken languages - local expertise means having access to professionals who not only understand this multicultural background but also have experience from international airlines, enabling them to perform with a natural respect for both the airlines’ service concept and cultural expectations within the country.
To overcome this challenge, partnering with experts who thoroughly understand the country’s diverse landscape is proving to be an effective strategy for securing market share and maintaining a competitive edge. The example of Lufthansa suggests this may be an emerging trend, and our Total Crew Management™ is proof that this shift was anticipated years ago.
Back in 2019, we expanded our strategic TCM partnership with one of our European partner airlines to India, a collaboration that enabled the carrier to utilize a global workforce, reverse traffic flows and capitalize on our diverse air crew composition, employing staff locally on competitive terms. Our advanced recruitment, crew management, and aviation payroll solutions, along with our operational bases in India, have been game-changing for various of their single routes, as they provide a strategic advantage and an efficient setup for deploying skilled crew members to meet evolving market demands and new market entrants.
Our presence in India, combined with local expertise and access to a wide talent pool, has positioned us well to benefit from the country's increasing air traffic connectivity, both domestically and with key international destinations such as Europe, Middle-East and the United States. This has given the Finnish carrier a competitive edge in maintaining crucial routes in Asia.
Solutions like these ensure that airlines can preserve their service concepts and adhere strictly to their training standards and guidelines. The approach not only enhances operational efficiency and offers airlines increased predictability and flexibility in cost optimization and crew utilization, but it also guarantees a steady supply of skilled crew members to meet the aviation sector's needs.
As the market in India continues to evolve, it prompts a critical question: Is the trend of forming strategic partnerships truly on the rise? If so, could adopting crew management solutions be the best way forward for airlines aiming to stay competitive? The evidence suggests that those who anticipate and adapt to these trends, may well secure a significant edge in this demanding, expanding, and exciting market.