However, the market is evolving rapidly, creating significant new route opportunities. International traffic in India has more than doubled over the last decade and would have grown faster were it not for bilateral constraints. And with the growth of the economy and rising income levels, not only is there potential for traffic to accelerate, but the profile of passengers and destinations is also changing fast:
All of this points to tremendous opportunities for foreign airports and airlines in India. However, traditional methodologies for route development tend to be ineffective because the historical data is misleading. Since travellers were presented with limited non-stop options, and hub carriers did not invest heavily in promoting individual destinations, unserved or underserved markets received little traffic. But this was largely a supply-led issue.
Recent experience has shown that the introduction of non-stop services, supported by effective destination marketing, can deliver extraordinary traffic stimulation, the potential for which is not reflected in traffic data alone. Instead, it requires a deep understanding of the dynamics and drivers of the Indian travel market, and this is the value that CAPA brings. Our approach includes: