By Kamal Shah
In an engaging, in-depth interview, Union Minister of Civil Aviation Mr. Rammohan Naidu Kinjarapu dives into the pressing topics of progress and development while also sharing exciting projections for the future. With keen insight, the Minister unveils the ambitious roadmap ahead, as India’s civil aviation sector aims for a leading role on the world stage.
Q1. How is the Ministry of Civil Aviation strategizing to strengthen air connectivity to promote and fully capitalize on India’s rich cultural and historical heritage for tourism, as emphasized by Prime Minister Modi during his international visits?
Under the visionary leadership of Hon’ble Prime Minister Sh. Narendra Modi Ji, our efforts are grounded in the belief that connecting previously underserved and unserved destinations is essential to unlocking the immense tourism potential of India’s cultural and natural heritage.
And being in charge of the Civil Aviation Ministry, I take pride in the growth of the aviation infrastructure in the country over the last 10 years, which has encouraged domestic and international tourism within the country. We have 160 airports operational in the country today, up from 74 in 2014. As we move toward our vision of having 350–400 airports in the country by 2047, we are determined to harness the vast tourism potential of the nation in a manner that benefits everyone.
Tourism, contributing approximately 7% to 8% of India’s GDP, plays a critical role in job creation and economic growth. It is a labor-intensive industry and with more airports coming up across the length and breadth of the country, we are creating opportunities across urban and rural India.
Our Regional Connectivity Scheme (UDAN) has been instrumental in this transformation, with operational routes expanding from 48 in 2017–18 to 619 today. Airports like Tezu in Arunachal Pradesh, Kishangarh near Ajmer and Kannur in Kerala have brought remote and culturally rich regions closer to travelers.
Additionally, India’s international connectivity has expanded to include direct flights to 56 countries, making travel to and from India more convenient than ever before. This seamless connectivity is reflected in India’s improved rank on the World Economic Forum’s Travel & Tourism Development Index 2024, where we now stand at 39th place.
Another key initiative is the execution of Bilateral Air Services Agreements (ASAs) with 116 foreign countries, facilitating seamless international flight operations. These agreements strengthen India’s position as a global tourism hub and align with the government’s vision of establishing India as a premier travel destination. They not only connect our country to the world but also invite the world to experience India’s hospitality.
And as aviation serves as the gateway to India, with over 80% of foreign travelers arriving by air, our airports are the soulful representation of our cultural richness and natural beauty. Each airport tells a story of its region. The new terminal at Varanasi Airport draws inspiration from the sacred Kashi Vishwanath Temple, Darbhanga’s terminal celebrates the vibrant colors of Mithila art, and Bagdogra’s architecture mirrors the majestic Himalayan mountains. Similarly, the GMR airport under development at Bhogapuram reflects the rich culture and traditions of North Andhra in its design.
Through such architectural brilliance and cultural integration, we are redefining the way airports are experienced, making them not just places of transit but also destinations that inspire and connect people to India’s diverse and vibrant legacy.
By fostering regional connectivity, improving infrastructure and building global partnerships, we are not only enhancing the travel experience but also contributing to India’s emergence as a global leader in tourism and aviation. Through our strategic initiatives, we aim to ensure that every traveler’s journey to explore India’s unparalleled heritage is both seamless and memorable.
Q2. How can regulatory authorities and industry stakeholders collaboratively address the issue of rising airfares in a manner that ensures affordability and fairness for passengers while safeguarding the interests of airlines, promoting healthy private enterprise and maintaining value for shareholders?
A. Aviation is an exceptionally sensitive industry that necessitates a careful balance between the interests of passengers and airlines. Airfare determination relies heavily on the dynamics of supply and demand, with global carriers conforming to International Air Transport Association (IATA) regulations. These regulations allow for dynamic pricing, enabling airlines to adjust fares in real-time to reflect market conditions.
In recent years, some carriers have encountered significant challenges, leading to market exits. Despite these setbacks, policy interventions by Prime Minister Narendra Modi, particularly the UDAN scheme, have played a pivotal role in revitalizing the sector. By offering targeted incentives and concessions, we have supported airlines, fostering a robust recovery and steady expansion.
We are rapidly bolstering our aviation infrastructure by enhancing aircraft fleets, increasing terminal and runway capacity, and improving overall airside operations. These supply-side initiatives are expected to ease fare pressures organically. The Indian airline industry currently has over 1,700 aircraft on order; as these aircraft are commissioned, capacity will rise significantly, enabling airlines to better accommodate the growing demand. Concurrently, the government is investing in the modernization and expansion of terminals and runways nationwide.
Addressing structural challenges remains a priority, exemplified by efforts to promote the domestic aircraft leasing sector. The enactment of the ‘Protection of Interests in Aircraft Objects Act 2025’ is instrumental in mitigating market risks and facilitating access to more favorable financing for airlines. Lower leasing costs should, in turn, contribute to more competitive airfares.
Further, our investments in indigenous aircraft manufacturing, as well as in Maintenance, Repair, and Overhaul (MRO) services, aim to reduce operational expenditures. These advancements will not only fortify the Indian aviation landscape but also result in long-term reductions in ticket prices.
To address short-term imbalances between supply and demand, we actively coordinate the addition of flights during periods of peak demand. For example, during Onam, when travel from Kerala to the Gulf region surged, additional flights were deployed to stabilize fares.
For ongoing oversight, a Tariff Monitoring Unit has been established at the Directorate General of Civil Aviation (DGCA) to track airfare trends. We have consistently directed airlines to manage fares responsibly during major events and emergencies, such as the Kumbh Mela or the situation in Kashmir, by deploying extra flights and curbing abrupt fare hikes.
Transparency is also central to our approach. All domestic airlines are now required to publish detailed fare information on their websites. Moreover, we are continually enhancing the AirSewa portal to address passenger grievances related to airfares, making it more accessible and user-friendly.
Ultimately, our vision is to develop a comprehensive aviation ecosystem in which increased capacity, improved infrastructure, and technological advancements naturally drive down costs. We are confident that, through these integrated efforts, air travel in India will become progressively more affordable and inclusive.
Q3. How has India’s regional connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), contributed to enhancing air connectivity in underserved and unserved regions since its inception, and what notable achievements have been realized under this initiative?
To me, UDAN represents far more than just a government initiative; it symbolizes India’s collective ambition, the hopes of our people, and the substantial advancements made in democratizing air travel. A decade prior, the country’s air traffic was predominantly limited to six major airports, with limited or no connectivity for tier-2 and tier-3 cities.
Thanks to Prime Minister Narendra Modi Ji’s visionary UDAN reform, India’s civil aviation sector has undergone significant transformation. We have established 88 underserved and unserved airports and launched 619 new routes, backed by investments exceeding ₹4,300 crores. I am particularly proud that UDAN has empowered 1.5 crore middle-class citizens to access affordable air travel, effectively turning the aspiration of “Hawai Yatra for Hawai Chappal” into a tangible reality.
With the Finance Minister’s recent announcement extending UDAN for another ten years starting April 2027, we are poised to further enhance regional connectivity. The next phase aims to integrate 120 additional destinations and serve 4 crores more passengers, with a particular emphasis on helipads and smaller airports in hilly terrains, aspirational districts, and the North-East, ensuring even the most remote areas are connected.
The scheme’s positive impact is evident at locations like Darbhanga airport, a notable UDAN success where robust domestic and rising international demand testify to its effectiveness. Moreover, UDAN has significantly contributed to job creation, not only directly in aviation and allied services but also indirectly across the hospitality and tourism sectors. Initiatives under UDAN 3.0, such as tourism-centric routes, have yielded impressive results in the North-East, with airports like Pasighat, Ziro, Hollongi, and Tezu catalyzing growth in connectivity and local tourism.
A diverse range of aircraft now operates on UDAN routes, from Airbus and Boeing models to regional aircraft such as the ATR and Twin Otter. The scheme’s Viable Gap Funding has also provided a boost to regional airline start-ups like Star Air.
Overall, UDAN stands as a remarkable story of transformation and empowerment, reinforcing the impact of inclusive policymaking and visionary leadership. I take great pride in how UDAN has shifted air travel from a luxury enjoyed by a few to an affordable and accessible mode of transportation for millions across India.
Q4. What measures are currently being considered or implemented by the government to ensure a more conducive and seamless business environment for aircraft lessors operating in India?
It is with great enthusiasm that I share the significant strides our government is making to revolutionize the aviation sector in India! The recently enacted Protection of Interests in Aircraft Objects Act 2025 stands as a testament to our ambitious vision of promoting the ‘Ease of Doing Business’ and opening new avenues for Indian airlines to access superior leasing and financing options on the global stage. This groundbreaking legislation is specifically designed to uplift our airlines’ international standing by boosting their CTC (Cape Town Convention) score, it will empower our carriers to tap into more affordable credit lines and enjoy a remarkable reduction of 8 to 10% in leasing costs.
Imagine what this means for the growth and competitiveness of India’s aviation industry! Not only will lower leasing costs allow our airlines to modernize and expand their fleets without bearing the brunt of heavy upfront expenditures, but the benefits will also trickle directly to consumers. Reduced operational outlays will naturally translate into lower airfares, making air travel even more accessible and affordable for millions of Indian passengers.
We are on the verge of implementing this forward-looking legislation, with an official commencement notification set to be issued very soon. In tandem, we are diligently working to develop comprehensive Rules under the Act within a six-month timeframe. Upholding our commitment to transparency and collaboration, we shall pre-publish the draft Rules well before they are finalized, inviting insightful feedback and suggestions from stakeholders across the public spectrum and industry alike. The aim is to forge a robust and holistic regime encompassing the Convention, the Protocol, the Act, and the Rules, ensuring a seamless and all-encompassing operational framework.
Our dedication to fostering a healthy leasing environment is visible in our earlier initiatives at GIFT City, where we have offered attractive incentives such as income tax exemptions, extended tax holidays, stamp duty waivers, and streamlined processes through regulatory bodies like the DGCA. Now, with the formal adoption of the Cape Town Convention, we are gearing up to transform GIFT City into a globally recognized aircraft leasing hub, further amplifying the existing advantages.
Recently, GIFT City played host to the prestigious India Aircraft Financing & Leasing Conference in Gujarat, attracting over 300 luminaries from airlines, lessors, financial institutions, legal firms, and more—an impressive convergence of global and domestic expertise. GIFT City’s allure only grows when compared to traditional hubs like Dublin, Singapore, and Dubai—our cost-efficient real estate, affordable workforce, competitive utility prices, and unparalleled access to the burgeoning Indian aviation market create an unbeatable business proposition. With the legal backing of the Cape Town Convention, GIFT City’s standing as a prime destination for aircraft leasing is bound to soar, ushering in greater investment and employment opportunities.
It is worth noting that until now, the most lucrative component of the aviation value chain—aircraft leasing and financing—was dominated offshore. But the tides are shifting! Strengthening our domestic leasing ecosystem unveils a staggering annual revenue potential of $5 billion. As India’s airlines continuously expand to meet the demands of a thriving market and regional aviation flourishes under transformative initiatives like UDAN, I am supremely confident that India is set to become a dynamic powerhouse in the global aircraft leasing and financing arena. The future is bright, and the success story has only just begun!
