Opportunities for Airline Startups in India !, Says Boeing India Prez, Citing Data

Salil Gupte, President of Boeing India, recently highlighted the potential for airline startups in India. He mentioned that India's growing economy and unique geography provide significant opportunities for new airlines to offer targeted services and products. Boeing has been actively supporting civil aviation customers in India and has placed nearly 600 aircraft orders from Indian airlines, including Air India, Akasa, and SpiceJet.

In an interview with ET Prime, Gupte talked about the India’s expanding aerospace presence, the competition with rival Airbus, and more. India's aviation market is one of the fastest-growing in the world, with a projected annual growth rate of around 9% over the next decade. The number of domestic air passengers in India has been steadily rising, reaching over 140 million in 2023.

"... look at one of the charts in our commercial market outlook (which sees Indian aviation to order around 2,550 commercial planes over the next two decades), you see only a small percentage of the overall market growth over the next 20 years. That small percentage alone would be the size of the largest airline in the US today. So, whenever somebody says that the Indian market is consolidated to two players and that there’s no room for startups, I hope that data proves that is absolutely untrue; that there will be opportunity for entrance into the Indian market over the next 10 to 20 years, that is very clear," said Salil Gupte.

In his role, Salil Gupte oversees Boeing's commercial, defense, and services businesses in the region. He leads a team of around 5,000 employees across various sites in India, including Bengaluru, Chennai, Hyderabad, Mumbai, and New Delhi.

Gupte has been instrumental in expanding Boeing's presence in India, supporting both Indian and global customers. Gupte has also been involved in significant defense projects, such as the delivery of C-17 cargo aircraft, P-8 maritime patrol aircraft, and Apache helicopters.

The Indian aviation market is highly competitive, with established players like IndiGo and Air India dominating the skies.

Gupte emphasized that the synergy between civil and defence aviation is extremely important in every single successful market. Citing markets of Japan, Singapore, Turkey and the likes,Gupte said that these countries leveraged the economies of scale of combining civil and defence aviation to grow. "They have not looked at them as separate individual markets, and that’s going to be very important for us.", Gupte said.

The Boeing India president also mentioned HAL and said that the government-owned aerospace and defense company is producing aerospace products like aircraft doors for the longest time for plane Makers.

Gupte also discussed the emergence of private sector players like Dynamatic, a Bengaluru based precision engineering company, Notably, Dynamatic recently announced that it is collaborating with Deutsche Aircraft to manufacture the rear fuselage of the D328eco, a 40-seat turboprop aircraft designed to enhance regional connectivity and sustainability. 

Airline Startups in India

There has been a surge in investment in aviation startups, with companies like Akasa Air and SpiceJet attracting significant funding. Further, the Indian government has been supportive of the aviation sector, with initiatives like the UDAN (Ude Desh ka Aam Naagrik) scheme aimed at making air travel affordable and widespread.

Launched in 2022, Akasa Air is a low-cost carrier founded by former IndiGo executives. It aims to provide affordable and reliable air travel across India.

Although not a recent startup, SpiceJet has been a significant player in the Indian aviation market since its inception in 2005. It has successfully expanded its fleet and network over the years.

Airline startups in India face several challenges. Limited airport infrastructure and slot availability can restrict growth and operational efficiency. Regulatory hurdles is also big challenge as navigating the complex regulatory environment and obtaining necessary approvals can be time-consuming and challenging.

Despite these challenges, the potential for growth and innovation in the Indian aviation sector remains high.