India's Civil Aviation Minister, Jyotiraditya Scindia, appealed to domestic airlines on Wednesday to collaborate in setting up an international civil aviation hub within the country. He emphasized the importance of acquiring more wide-body aircraft to enable direct point-to-point international services for passengers.
India is among the world's fastest-growing civil aviation markets, and Air India, owned by the Tata Group, recently placed a historic order for 470 aircraft, including wide-body planes.
As the government seeks to enhance the country's substantial growth potential in the civil aviation sector, Minister Scindia expressed the need to establish a civil aviation hub in India.
"While profit margins and revenues may be slim, airlines are comfortable competing domestically due to low volatility. However, the moment they venture into the international market, revenues increase significantly, albeit with greater volatility," remarked Mr. Scindia, urging airlines to take risks and face volatility to promote India's presence in international airspace.
During his speech at the Confederation of Indian Industry's (CII) annual session in New Delhi, the minister also emphasized the necessity of incorporating more wide-body aircraft into the fleets of domestic carriers to facilitate the development of an international civil aviation hub.
"To achieve this, we require wide-body aircraft that can operate point-to-point flights, eliminating the need for passengers to take circuitous routes. I urge the competitors in the industry to follow suit, as there is already intense competition on the domestic front," he stated.
Mr. Scindia's remarks were prompted by suggestions put forth by Bhaskar Bhat, Co-Chairman of the CII National Committee on Civil Aviation and Chairman of Tata SIA Airlines, which operates flights under the brand name Vistara.
"It is crucial for us to expand our international footprint while simultaneously expanding domestically. Our Indian carriers must establish an international presence as well," Mr. Scindia asserted, adding that acquiring more wide-body aircraft is essential for flying distances exceeding six to seven hours.
The Ministry of Civil Aviation is already collaborating with Delhi Airport, as well as IndiGo and Air India, to transform the airport into an international civil aviation hub.