India’s aviation market: Opportunities and challenges for European airlines
India’s aviation market is rapidly expanding and is set to become the world’s third-largest in the coming years. Recent developments, such as Scandinavian Airlines’ (SAS) resumption of flights to India after nearly two decades highlight renewed interest in this strategically important market. However, rising operational costs, longer routes due to airspace restrictions, and intensifying competition from local airlines mean European airlines must rethink their strategies and adopt new ways of operating to remain competitive.
India’s aviation sector offers enormous potential but also significant hurdles. Rapid economic growth, a burgeoning middle class, and increased demand for travel have transformed India into a strategically attractive yet challenging market. Infrastructure constraints, intricate regulations, and intense local competition require airlines to approach the market differently.
Moreover, the Indian market is characterized by distinct consumer preferences shaped by cultural nuances, price sensitivity, and high expectations for service quality. To succeed, airlines must deliver customer experiences that resonate deeply with local passengers while managing operational costs effectively.
New strategic imperatives for European carriers
European airlines, traditionally reliant on legacy operational models, now face intensified pressures due to geopolitical constraints, notably the restrictions on Russian airspace. These constraints result in longer routes, higher fuel consumption, and increased operational costs, placing European carriers at a disadvantage compared to regional airlines operating shorter, more efficient routes.
To overcome these challenges, European airlines must re-evaluate their route development, embrace innovative operational strategies, and actively pursue culturally aligned, localized solutions.
Leveraging strategic partnerships
Establishing partnerships has become a critical approach for many airlines aiming to strengthen their position in India. The recent collaboration between IndiGo, Delta Air Lines, Air France-KLM, and Virgin Atlantic illustrates how alliances are reshaping connectivity between India, Europe, and North America. While these partnerships open new opportunities, they also raise important questions about maintaining consistent service quality and protecting brand identity in a highly competitive environment.
Innovative operational models: The importance of localization
Operational agility is an essential aspect for success in complex markets like India. European carriers must adopt operational models that provide flexibility and responsiveness to market demands. Solutions such as Total Crew Management™ (TCM) enable airlines to efficiently manage crew resources through local recruitment and deployment. While the TCM model has proven successful for airlines such as Finnair in optimizing costs and enhancing customer satisfaction through local service delivery, airlines should view it as part of a broader strategy rather than an isolated solution.
Localized crew management provides airlines with substantial advantages, including optimized costs, culturally tailored passenger experiences, and greater operational resilience. It also enables airlines to respond rapidly and effectively to geopolitical shifts or market fluctuations without compromising service consistency.
European airlines embracing local expertise
Several European carriers have recognized the value of localization as a strategic lever in the Indian market, adopting tailored crew management and operational models to better compete.
Finnair, for example, has built on its long history of connecting Europe and Asia by establishing crew bases managed locally by AAP Aviation in markets such as India, Thailand, Hong Kong, and Singapore. By recruiting and managing flight crew locally, Finnair has optimized costs, minimized language barriers, and improved service quality through cultural alignment—leading to higher passenger satisfaction and greater operational resilience.
British Airways has also significantly ramped up its investments in India, its second-largest market. The airline now operates five local cabin crew bases in the country and employs 2,500 people locally—moves that help deliver more relevant experiences for Indian passengers and highlight the importance of local expertise in efficient operations. While each airline has its own approach, a common thread is clear: local expertise is becoming essential for success in this highly competitive market.
India’s aviation growth trajectory provides a compelling opportunity, but also demands a strategic evolution from European airlines. Legacy approaches to market entry and operations will no longer suffice. Airlines must strategically leverage alliances, localize operational frameworks, and maintain cultural relevance.
Ultimately, success in India’s aviation market hinges on recognizing that it’s not just about being present in Asia anymore, but showing up with the right model to compete.