The Tata Group has marked a significant milestone in the aviation industry, recording an impressive 20% increase in total airline seat capacity across domestic and international markets. According to data shared by the group, which now controls Air India following its merger with Vistara, total seat capacity has risen from 64.03 million in 2023 to a remarkable 76.72 million in 2024. The Tatas also operate Air India Express, which recently absorbed AirAsia India, consolidating their position in the aviation sector.
On the domestic front, the group achieved a substantial 19% rise in passenger seat capacity, climbing from 45.88 million in 2023 to 54.76 million in 2024. This represents a commanding 28% share of the total domestic seat capacity, a notable improvement from 25% in the previous year. The expansion reflects the Tatas’ strategic push to strengthen their foothold in the competitive domestic aviation market.
However, despite this growth, the Tatas still face a significant gap compared to market leader IndiGo. Cirium, a leading aviation analytics firm, reported that IndiGo is projected to close the year with a massive 119 million seats a 9% increase over 2023 underscoring its dominance in the domestic skies.
The Tata Group’s progress extends beyond domestic boundaries. International seat capacity has surged by 21%, growing from 18.15 million in 2023 to 21.96 million in 2024. This expansion reinforces the Tatas’ commitment to capturing a larger share of the global aviation market through strategic network optimization and improved fleet utilization.
Air India, the group’s flagship carrier, has shown remarkable growth despite operational challenges. Excluding the contribution of Vistara, Air India’s seat capacity alone increased by over 39% in 2024, reaching 23.5 million seats, as per Cirium. This growth reflects the Tatas’ ongoing efforts to revitalize the airline through fleet expansion, enhanced services, and broader route networks.
The Indian aviation sector, bolstered by growth from Tata Airlines, IndiGo, and Akasa Air, has achieved a domestic seat capacity growth of 6.84% in 2024. Akasa Air, the industry’s newest entrant, quietly expanded its seat capacity by over 20%, carving out a niche in the competitive landscape.
Despite Go First’s operational suspension and reduced capacities from SpiceJet and Alliance Air, India’s domestic seat capacity reached an aggregate of 193.5 million in 2024, reflecting the sector’s resilience. Scheduled flights increased by 5.4%, totaling 1.13 million flights for the year. Additionally, total available seat kilometers (ASKs) a key industry metric grew by 7.33% in 2024.
The Tatas’ ambitious expansions signal their intent to reshape India’s aviation landscape. While challenges persist, such as bridging the gap with IndiGo, the group’s multi-brand strategy and focus on scaling operations both domestically and internationally position it as a formidable player in the industry. With the Indian aviation market continuing to grow, the Tatas’ efforts contribute significantly to the sector’s overall dynamism and future potential.
This remarkable growth underlines the resilience of India’s aviation industry, solidifying its position as a global aviation hub despite ongoing challenges.
