12 things to look forward to in Indian aviation in 2024

The aviation sector has also been grappling with supply chain challenges and issues related to Pratt & Whitney (P&W) engines.

1. A350 induction & International Expansion

Air India will start commercial services with the A350 early next year. While this may still not be the first custom-built aircraft for Air India, it will herald a new phase for the airline. Besides, the A350 will become the first and only widebody in India when it starts operations. Currently, that segment is dominated by Boeing—the two widebody wet leases in IndiGo are Boeing aircraft.

2. B777 refurbishment

Air India’s older B777s will go for a refurbishment starting July 2024. While the dated product will be revamped with newer seats across cabins, the airline is also adding a premium economy section. When complete, Air India will have three or four classes in its aircraft.

3. IndiGo groundings 

IndiGo is losing ground. It may not be worrisome yet but the airline lost market share in November. Come next year, there will be a spate of groundings the airline has to handle as Pratt & Whitney engines undergo checks and replacement. The engine has been a troublemaker for IndiGo since induction. What happens next is anybody’s guess.

4. IndiGo’s widebody order

Rumours of IndiGo placing a widebody order have surfaced at regular intervals. The carrier has neither accepted nor overtly denied the rumours while maintaining that it continues to explore this option, among others, including a business class cabin and loyalty programme.

5. SpiceJet’s solvency

The airline’s announced INR 2250 crore funding is yet to hit the banks, but when it does the list of creditors asking for funds is much longer than the investors. How will the situation pan out from here on for SpiceJet?

6. Akasa Air’s international expansion

Akasa Air became the fastest Indian airline to reach the 20 aircraft mark, making it eligible to start foreign operations. It has the approvals but is awaiting delivery of more planes before starting operations. Domestic operations weren’t smooth as it had to undergo multiple changes in a short time, including abandoning some of its early routes. How will the international play pan out?

7. Domestic growth

India will close 2023 with the highest-ever domestic traffic, surpassing the previous best, recorded in 2019. While India lost Jet Airways in 2019, this year it was the turn of Go FIRST to go under. What happens in 2024? Will the regional COVID uptick have an impact or will 2024 push traffic up even further?

8. Oil prices

Oil prices have been volatile ever since the pandemic started. They started with extreme lows and then reached peaks never seen before. With geopolitical conditions being turbulent, oil prices will continue to have a wavy graph, with no signs of cooling down.

9. 2024 general elections

Most governments in the past have remained committed to aviation. However, the current one has focused on some very important areas, like connectivity in the form of RCS-UDAN and the sale of Air India. Will there be continuity at the centre or will there be a new dispensation? Any change leads to disruption and sometimes merely cancelling the old. If the current mood is anything to go by, the Narendra Modi led government looks set for a third term. But the winds can change direction suddenly in politics and the general elections will dictate what next for Indian aviation.

10. UDAN & New airports

With the initial challenges of UDAN behind, the scheme has been tweaked appropriately. Yet it faces challenges on either the infrastructure side or the airline side. There have been challenges with the solvency of airlines or infrastructure not being ready, but the last push has seen many more routes being made operational.

The scheme will end soon since it has a ten-year horizon and 2024 is when the biggest push will be seen, first to open airports and routes before the general elections and then to strengthen the scheme with a possible extension.

11. Geopolitical uncertainties

From COVID in 2019 to Ukraine in 2022 and the Israel-Hamas conflict in 2023, the world has seen geopolitical shocks at regular intervals. Where a conflict will erupt next is anybody's guess. The conflicts have had deep consequences, ranging from the impact on cargo in the case of COVID to airspace closures because of the war in Ukraine and volatility in oil prices.

12. Delhi hub

Led by Civil Aviation Minister Jyotiraditya Scindia, the government is going all out to make India an aviation hub. The start is from Delhi, which involves changes to policies and terminal structure. This year will see a definite answer on multiple areas, such as having multi-terminal international operations and dedicated connectivity between terminals, a feature that has been lacking at Indian airports, affecting connection times.