India’s Aviation Boom: A World of Opportunity for AerFin

India’s aviation industry is soaring. With the country on track to become the world’s third-largest aviation market, the demand for aircraft, engines and MRO (Maintenance, Repair, and Overhaul) services is unprecedented. As part of the UK Department for Business and Trade’s Airports and Aviation MRO Trade Mission, I had the opportunity to visit key industry players across four cities in five days — and the scale of opportunity is staggering.

Passenger numbers in India are expected to triple over the next decade, driven by a rapidly growing middle class, improved connectivity, and a modal shift from trains to planes. To put this into perspective, India sees around 18 million daily train passengers compared to just 430,000 daily air passengers. A small modal shift of just over 2% from trains to planes would double the number of air passengers, creating an enormous demand for additional aircraft and airport capacity.

India currently has around 800 commercial aircraft — a fraction of China’s 3,500 — yet airlines like IndiGo and Air India have placed massive orders to expand their fleets. IndiGo alone has over 350 aircraft in service with another 900 on order, while Air India made a record-breaking order for 500 aircraft in 2023. This growth isn’t limited to domestic travel; India is also expanding its international routes, like IndiGo’s new Manchester service, strengthening ties between India and the UK.

The growth in air travel is outpacing infrastructure, and airports are working hard to keep up. Many have increased capacity through efficiency improvements and expansion projects, but some are already hitting their limits. Plans for additional runways and new airports are well underway, with new facilities like Bengaluru’s Terminal 2 highlighting the country’s ambitious expansion strategy.

This booming aviation market also means an increased demand for MRO services. During the mission, I visited leading MRO providers like GMR Aero Technic, AI Engineering Services Limited (AIESL), and Air Works, all of which are investing heavily in their own capabilities to meet growing demand. Airlines are also expanding their in-house MRO capacity to reduce reliance on third-party providers and support their rapidly growing fleets.

One of the most exciting takeaways from the mission was the focus on sustainability. India’s new airports are prioritising green energy solutions, with solar parks, advanced building thermal management systems, and water harvesting technologies. Airlines are transitioning to more fuel-efficient aircraft and engines, and optimising flight operations to reduce their carbon footprint. As a company committed to sustainability, AerFin is well-positioned to support these efforts by extending the life of aviation assets and reducing waste through our USM (Used Serviceable Material) solutions.

Supply chain challenges and engine issues remain some of the biggest pain points for Indian airlines. During the mission, I learned that one airline currently has over 70 aircraft grounded due to supply chain problems. This creates a significant opportunity for AerFin to provide critical support. Our extensive inventory of USM, particularly for narrowbody fleets like the A320 and 737, offers cost-effective solutions to keep aircraft flying and minimise downtime.

As India’s aviation sector continues its rapid expansion, our expertise in asset management, MRO Lite services, and USM supply will be essential in helping airlines manage costs and maintain operational efficiency.

Beyond fleet growth and infrastructure development, the skills shortage for aviation engineers is a key concern. Many Indian airlines and MRO providers are addressing this by investing in their own training academies — a move that reflects their long-term commitment to building a skilled workforce and supporting sustainable industry growth.

Walking through Bengaluru’s new Terminal 2 and hearing about its ambitious expansion plans — including a metro line, new ground transportation links, another terminal, and new maintenance hangars — underscored the scale of India’s aviation growth. This country’s vision for its aviation future is clear, and it’s looking for global partners to help turn that vision into reality.

For AerFin, the opportunity is immense. Our ability to supply high-quality, cost-effective USM, provide spare engine support, and collaborate with MROs on in-house repair capabilities positions us as a key partner in India’s aviation journey. As the market evolves, we’re ready to support airlines and MRO providers in navigating the challenges and seizing the opportunities ahead.

India’s aviation boom is just beginning, and AerFin is excited to be part of this extraordinary journey. By strengthening our partnerships, expanding our capabilities, and staying true to our values of confidence, reliability and progressiveness, we’ll continue to help the industry see the way ahead.