Indian aviation
India’s aviation industry continues evolving rapidly, with significant developments shaping domestic and international markets. IndiGo has taken a major leap into long-haul travel, Air India is strengthening its global network despite a notable drop in its domestic market share, and Mumbai Airport is considering debt refinancing. Meanwhile, IndiGo co-founder Rakesh Gangwal’s appointment as Chairman of Southwest Airlines highlights the global influence of Indian aviation leaders. Here’s a detailed look at the latest aviation updates.
IndiGo Enters the Long-Haul Market with European Expansion
IndiGo, India’s largest airline by market share, is making its long-haul debut with direct flights to Manchester and Amsterdam starting July 2025. This expansion marks a major milestone for the airline, as it enters a highly competitive long-haul segment traditionally dominated by full-service carriers like Air India, British Airways, and Lufthansa.
IndiGo will operate three weekly flights to both Manchester and Amsterdam, offering much-needed connectivity between India and the UK’s North, as well as the Netherlands. This move is especially significant for Manchester, which currently has no direct flight from India. The new routes are expected to benefit travelers, businesses, and the Indian diaspora in the region.
To support its long-haul ambitions, IndiGo has leased Boeing 787-9 aircraft from Norse Atlantic Airways. The airline inducted its first widebody plane into service on March 1, 2025, with three more set to join later this year. IndiGo has hinted at making these services daily and is actively exploring additional European destinations for further expansion.
Beyond Europe, IndiGo is aggressively growing its international network, having recently announced direct flights between Mumbai-Seychelles and Mumbai-Krabi, expanding leisure travel options for Indian flyers.
Air India Faces Market Share Decline Amid Expansion
India’s domestic aviation market saw an 11.28% year-on-year growth in January 2025, with 14.6 million passengers flying during the month, according to the Directorate General of Civil Aviation (DGCA).
IndiGo further strengthened its dominance, increasing its market share to 65.2% in January 2025, up from 64.4% in December 2024. In contrast, Air India Group’s market share dropped to 25.7% from 26.4% in December, signaling growing competition. Akasa Air’s share stood at 4.7%, while SpiceJet held 3.2% of the market. When it comes to On-Time Performance (OTP), IndiGo led the rankings at 75.5%, followed by Akasa Air at 71.5%. Air India recorded an OTP of 69.8%, while SpiceJet lagged at 54.8%, highlighting continued operational challenges.
Despite its domestic market dip, Air India is ramping up international expansion. The airline is shifting its Tokyo operations from Narita Airport to Haneda Airport, a move designed to improve passenger convenience and strengthen its strategic partnership with All Nippon Airways (ANA) through an expanded codeshare agreement.
Additionally, Air India has launched “ZipAhead”, a new paid service for economy class passengers, offering priority check-in and baggage handling for a fee of around $8. This initiative is aimed at enhancing the passenger experience.
Mumbai Airport Debt Refinancing Underway
The Adani Group, India’s largest private airport operator, is in discussions with BlackRock and Citadel to refinance $750 million in debt for Mumbai International Airport Ltd (MIAL), according to The Economic Times. The refinancing will provide funds for critical airport upgrades and expansion projects.
The Adani Group currently operates several key Indian airports, including Mumbai, Ahmedabad, Lucknow, Jaipur, Mangaluru, Guwahati, and Thiruvananthapuram, in addition to the upcoming Navi Mumbai Airport. Collectively, these airports handle 23% of India’s passenger traffic.
IndiGo Co-Founder Among Top Indian-American Billionaires
Rakesh Gangwal, co-founder of IndiGo, remains one of the richest Indian-American billionaires in 2025, with an estimated net worth of $5.8 billion.
Gangwal, a veteran in the airline industry, began his career with United Airlines in 1984 and later became CEO and chairman of US Airways Group. In November 2024, he was appointed Chairman of Southwest Airlines, a move aimed at boosting the U.S. airline’s financial performance. Other top Indian-American billionaires include Vinod Khosla (Sun Microsystems), Jay Chaudhry (Zscaler) and Jayshree Ullal (Arista Networks)
Conclusion
India’s aviation sector is undergoing a significant transformation. IndiGo’s foray into the long-haul market signals its global ambitions while it continues to dominate domestic aviation. Air India is restructuring its international network, enhancing customer experience, and focusing on strategic markets like Japan. Meanwhile, Adani Group’s airport expansions and refinancing efforts highlight strong infrastructure investments.
With rising passenger numbers, new routes, and aggressive market expansions, 2025 is set to be an important year for Indian aviation.
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