India has all the ingredients for a world-class aviation market: IATA

India’s aviation sector may be going through a turbulent phase, but the long-term outlook remains strong, according to International Air Transport Association (IATA) Director General Willie Walsh. Speaking at a media roundtable in Geneva, Walsh said India has “all the ingredients to become a fantastic market” and that many of the current challenges including IndiGo’s widespread flight disruptions just are temporary.

Walsh noted that the country’s domestic aviation market has expanded rapidly. As of 2025, India’s domestic traffic is 32% larger than in 2020, measured in revenue passenger kilometres (RPKs). “It has increased by more than a third… and that growth does not come without challenges. India has facilitated that growth, and it is one of the most exciting global markets,” he said.

Airlines in India are preparing for even more expansion. Indian carriers have over 1,500 aircraft on order, and airport capacity is rising as several new airports come up across the country. Walsh welcomed the strong investment in both fleet and infrastructure, calling it a sign of confidence in India’s long-term aviation potential.

India’s domestic market is currently dominated by IndiGo and the Air India Group, which together control over 90% of the market. When asked about concerns over duopolistic tendencies, Walsh said the situation will evolve as infrastructure expands. “With the expansion of airport capacity, we will facilitate new entrants into the market. That’s something we will witness over the coming years,” he said.

India has historically been a difficult market for airlines to sustain operations in. Over the years, several major carriers have collapsed despite strong starts and ambitious plans. Walsh recalled the cases of Jet Airways and Kingfisher Airlines, which grew aggressively but ultimately failed to remain financially viable. “Many airlines have grown, then struggled financially and disappeared,” he said.

On the other hand, Walsh praised the privatisation of Air India, saying it has helped correct distortions caused by the airline’s earlier state ownership. The Tata Group took over the loss-making carrier from the government in January 2022, and Walsh noted that the transition has been “a very positive development” for the broader market.

Despite the immediate concerns around operational disruptions and capacity pressures, Walsh stressed that India’s aviation fundamentals are strong. Rising demand, large-scale fleet expansion, and major airport investments, he said, position India as a standout aviation market for the future.