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I and my friend love travelling. Yesterday evening, we both were making plan of trip to Goa in low budget. Our conversation took a turn and we started discussing about the rapid growth of the aviation market. Talk about one industry that’s growing by leaps and bounds in India, aviation gives a tough beating to most others.

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India is seen as third largest aviation market by 2025. Indian Govt. is also making efforts in this direction. An Important factor behind this rapid growth is government schemes like UDAN and NABH Nirman. Here is an image describing how fast these dynamics are changing.

So, Lets understand : What is UDAN?


Our Prime Minister, Narendera Modi has launched a new scheme called the UDAN on October 2016 . Main motive of this yojana is to provide air tickets at lesser price. UDAN (Ude Desh Ka Aam Naagrik) focal point is to make flying affordable for people who wants to travel.

Features of UDAN

  • Under this scheme the air fare between tier 2 and tier 3 cities will be made Rs. 2500 per hour of travel.
  • In a flight around 50% of the total seats will be reserved for the UDAN scheme.The airlines that launch flights to and fro Tier 2 and Tier 3 cities will be given subsidies.Also the airline that run under this scheme have not to pay landing and parking charges.
  • First aim of this project is to connect 56 unserved airports and 31 unserved helipads across the country.
  • The second target is to expand the airport capacity by more than five times.

Market Insights of world

Lower airfares, growing living standard day by day are major contributors to increased air travel. Additionally, military across Philippines, Thailand, Argentina, India and China, among others are expected to spend a lot of their defense budget in obtaining new military aircraft and related equipment in upcoming period.

Market Dynamics of world

There has been a continuous increase in the number of passengers who travel by air each year. Simultaneously, there has been a continual increase in the demand for new aircraft by the airlines to satisfy this growing demand. At present, there are more than 5,000 commercial airplanes in service currently in the world. In addition, Around the world, production of new aircrafts are in progress. The orders for new aircraft have increased at a greater pace for the leading aircraft manufacturers in the last year. In 2017, Airbus took 1,109 orders for the production of new airliners, while Boeing took 912 orders. These numbers show the demand for new aircraft by the airliners.The global military expenditure experienced an increase of 1.1 % from 2016 to reach USD 1,739 billion in 2017.

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Market size

According to IATA (International Air Transport Association), India is the fastest growing airline industry in the world. Last year passenger volume rose 17.4% ahead of China which grew at 13.5% .Trips have doubled over the past 4 years.

Market size

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Travel services – flights offered by Spicemoney

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Post Author: Manpreet Kaur

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