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Aviation Industry Indigo

Aviation Sector Loss to Fall to Rs 110-120 billion: ICRA

The industry's net loss will fall to Rs 110-120 billion in 2026-27 from Rs 170-180 billion in 2025-26. While the 2025-26 losses are higher than the Rs 55 billion loss in 2024-25, the projected improvement is determined by the normalization of flight operations and a steady growth in passenger demand. As stated by ICRA, domestic air passenger traffic will be anywhere between 175 million and 179 million in 2026-27. There was modest growth in 2025-26, during which estimates ranged from 0% to 3% because of several external disruptions. There was a net loss of Rs 170-180 billion in 2025-26 to the aviation industry, higher than the estimated figure of around Rs 55 billion in 2024-25. Though it will go down to Rs 110-120 billion in 2026-27, all thanks to growth in domestic air passenger traffic and the normalization of operations following disruptions in 2025-26, leading to flight cancellations and refunds. The industry's debt metric, which faded in 2025-26 with an estimated interest cover of 0.7-0.9 times from 1.8 times in 2024-25, will improve to 1.3-1.5 times in 2026-27, despite growing debt linked with new aircraft deliveries." The current year faced headwinds from cross-border growth, weather disruptions and travel hesitancy following an aircraft accident in June 2025. Furthermore, the increased US tariffs and operational disruptions at IndiGo impacted the aviation industry in India. While there are challenges, international traffic for Indian carriers is on the rise, with 7-9% growth for 2025-26 and 8-10% for 2026-27. With regard to fleet health, "Engine failures and supply chain challenges have brought about the grounding of 20-22% of the total industry fleet as of September 2023. The same has reduced to 13-15% as of February 2026, corresponding to 117 aircraft". As grounded aircraft numbers decrease and fresh supply enters the market, the industry will have a more stable equilibrium between supply and demand. After December 31, 2025, the total industry fleet stood at 865 aircraft, with over 1,700 aircraft pending delivery over the next decade. Source: Economic Times

Saheel Singh 06 Mar 2026

EVTOL Aircraft Aviation Industry

Indian eVTOL Aircraft Pioneers Seek Regulatory Progress

The Indian aviation industry is pressing India’s regulators to strengthen efforts to establish a regulatory framework for new eVTOL aircraft. The process is lagging despite PM Narendra Modi's advice to the industry to “leapfrog straight into aerial mobility.” As stated by R.K. Bali, MD of India’s Business Aircraft Operators Association, rules governing eVTOL air services will be implemented within two years. At the group’s recent conference in Hyderabad, Kurt Edwards, DG of the International Business Aviation Council, said that private sector work on Indian eVTOL models is already “far ahead of the regulator.” For instance, Bengaluru-based Sarla Aviation, backed by venture capital group Accel and Indian entrepreneur Nikhil Kamath, is emerging with the Shunya eVTOL. As stated by the start-up, the hybrid-electric 6-seater will have a range of up to 435 nm, including 82 nm in all-electric mode, and a cruise speed of up to 136 knots. Sarla, which has already begun construction of a manufacturing facility, is targeting type certification and the launch of commercial flights in 2029. The corporation said that the first air taxi services will operate to and from Bengaluru International Airport, with long-term plans to establish a network of vertiports in Mumbai, Delhi, and Pune. Last year, Chennai-based ePlane started flight testing a full-scale prototype of its e200X eVTOL aircraft and reported completing transition flights. The two-seater is designed for short urban trips, with a range of around 33 nm. Planned commercial air taxi operators comprise business aviation group JetSetGo, which last week placed pre-orders with UK manufacturer Vertical Aerospace for 50 of its 6-seater Valo aircraft. Under an agreement with InterGlobe Enterprises, U.S.-based Archer Aviation has committed its IndiGo airline subsidiary to deploy up to 200 of its four-passenger Midnight vehicles. Source: AIN

Saheel Singh 12 Feb 2026

Air India Airbus

Air India Converts 15 Airbus A321NEO Orders to Latest A321XLR

Air India announced the conversion of 15 of its existing orders for Airbus A321neo aircraft to the advanced Airbus A321XLR (Extra Long Range) variant. The conversion of the orders was announced at Wings India 2026. The conversion is part of Air India’s breakthrough orders placed with Airbus in 2023, with an extra order in 2024, totalling 50 twin-aisle A350 and 300 single-aisle A320 Family aircraft. Of the 300 single-aisle aircraft, this adaptation to A321XLR applies to 15 of the 210 A321neo aircraft ordered, while the remaining 90 A320neo remain as initially configured. The deliveries of the 15 A321XLR are expected between 2029 and 2030. The A321XLR, the state-of-the-art variant of the widely successful A320neo Family, offers a range of up to 4,700 nautical miles while delivering extraordinary fuel efficiency, lower emissions and superior onboard comfort for passengers. This capability will enable Air India to open new nonstop international routes and optimize high-demand, medium-haul international services with the flight economics of a single-aisle aircraft. The CEO and MD of Air India said: “The strategic conversion of a portion of our single-aisle Airbus aircraft orders to the A321XLR is in line with our effort of aligning Air India for the future. While we are accelerating the conversion of our current fleet with new and retrofitted aircraft, we are also building our future fleet to serve the rapidly evolving needs of travellers to and from India. We are pleased with our strong partnership with Airbus, which continues to support our vision through its commitment to aviation excellence. Air India's decision to choose the A321XLR is a considerable endorsement of this game-changing aircraft. The A321XLR is a revenue generator by improving incidences, managing seasonality and optimizing capacity on medium-haul routes. Air India, leveraging the XLR’s competencies and range, will open new prospects and strengthen India's connections with the rest of the world. The two companies are 50:50 partners and have set up a pilot training centre, inaugurated in September 2025 at the Air India Training Academy in Gurugram. It has 10 Full Flight Simulators and will train more than 5,000 new pilots in the next ten years, supporting commercial aviation growth in the country. Air India presently has 542 outstanding deliveries of new aircraft out of its total firm orders for 600 aircraft, underlining its commitment to building one of the world's youngest and most effective fleets to support India's growing aviation ambitions. Since January 2022, Air India has added about 170 aircraft to its fleet, marking considerable progress in capacity expansion and fleet modernization. Source: Air India

Saheel Singh 03 Feb 2026

Budget 2026 Aviation

Budget 2026: Duty-Free Baggage Limits Will be Increased, says Finance Minister Nirmala Sitharaman

The government of India will increase limits on items that passengers can bring abroad under duty-free allowances to align them with current travel realities, Finance Minister Nirmala Sitharaman said in her Budget 2026 speech on 2 nd February 2026 As mentioned in a CBIC notification issued later on 2 nd February 2026, the Indian government has overhauled travel rules by introducing the new Baggage Rules, 2026, which will replace the Baggage Rules, 2016. The new rule, effective from February 2, 2026, increases the general tax-free allowance for Indian nationals and Indian-origin tourists from INR 50,000 to INR 75,000. In a major move to support contemporary travellers, the Indian government now allows duty-free import of one new laptop or notepad for passengers aged 18 or above, an item that before did not have a dedicated free allowance under the previous rules. Most importantly, for any items passengers carry on a plane for personal use that exceed these free baggage limits, the standard customs duty has been reduced from 20% to 10%, effectively, which significantly reduces the tax burden on added purchases. This new regime also increases the use of electronic declarations, ensuring a faster, more seamless experience for the passengers at international terminals. Source: Business Standard

Saheel Singh 02 Feb 2026

Boeing 777 Boeing

Air India to Return Long-Grounded B777-300ER to Service

It has been over 5 years since a Boeing 777 aircraft took off after landing at Nagpur for a compulsory overhaul in February 2020. If rip-offs are a common practice at your neighbourhood car workshop, this was precisely what was done with the Boeing at the Maintenance, Repair and Overhaul depot at Nagpur. A spare was detached from this aircraft to fit another aircraft and it will be replaced soon. Gradually, it was stripped of extra spares and the aircraft lay grounded at the Air India Engineering Services Ltd MRO depot at Mihan-SEZ. It all started with a quick-fix idea for another Boeing 777, which landed at the same time for a phase check with a shorter turnaround. MRO engineers detached a spare from the first Boeing, which has the call sign VT-ALL and installed it in the other plane. And then Boeing became a parts store. It takes about 30 days for an MRO to complete the Boeing-mandated C check, but this one has been delayed for 5 years. It was expected that the fresh spare would be arranged soon, but calculations backfired. The plane cannot fly back until an airworthiness release certificate is issued. The delay, which was expected to last no more than a few days, dragged on for months and then years. Aeroplane after aeroplane flew away with some spare or other taken off from VT-ALL, a source said. This exposes difficulties in inventory management. It's not normal to pluck out a vital spare from one aircraft and use it in another. Earlier, AIESL was part of Air India, which was taken over by the Tata Group in 2022. Cannibalizing the aircraft did not matter so far, as both AIESL and Air India were part of the same group. The overhaul expanded speed after the Tata Group took over. The rollout dates were extended at least 3 times. Earlier, it was scheduled to fly in November; it was later extended to December, then to January. Source: Times of India

Saheel Singh 29 Jan 2026

Wings India 2026 Aviation

Wings India 2026: Asia’s Largest Civil Aviation Event Will Showcase the Future of Aviation

Asia’s largest civil aviation event, Wings India 2026, will be launched by Rammohan Naidu, Minister of Civil Aviation. The launch will start a four-day global aviation event to be held from 28 to 31 January 2026 at Begumpet Airport, Hyderabad. The theme of the event will be “ Indian Aviation: Paving the Future, From Design to Deployment, Manufacturing to Maintenance, Inclusivity to Innovation and Safety to Sustainability ”. The event will highlight India’s fast-expanding aviation landscape, its growing global footprint, and its vision to develop into a hub for manufacturing, services, innovation, and sustainable aviation solutions. A Global Platform for Aviation Excellence Wings India 2026 will have an expansive international exhibition, static aircraft displays, flying and aerobatic shows, an advanced international conference, CEO roundtables, B2B and B2G meetings, an aviation job fair, an awards ceremony and vibrant cultural programmes. Delegates from across the world will reinforce the event’s stature as a leading global aviation forum. This event will be attended by airlines, aircraft and engine manufacturers, MROs, airport developers, OEMs, technology providers, training institutions and service partners. This will be a meeting point for industry leaders, policymakers, innovators and investors to deliberate on evolving trends, prospects, and pathways shaping the civil aviation future worldwide. The international conference will have 13 thematic sessions, along with the Global CEOs Forum and Ministerial Plenary, covering main areas, for example, Airports, Aircraft Leasing, Helicopters, Airlines, Women in Aviation, MRO, Air Cargo Transportation, Business Aviation and Small Aircraft, Aircraft Component Manufacturing, Sustainable Aviation Fuel, Flying Training and Skilling, Advanced Air Mobility and Drones. Strong International and State Participation This event will be attended by foreign delegations and senior government officials from over 20 countries, as well as official delegations, reinforcing international cooperation in the aviation industry. Indian state participation will showcase aviation-led growth, investment prospects and infrastructure expansion. Spectacular Air Shows and Aircraft Displays Wings India 2026 will have impressive static aircraft displays, flying displays and aerobatic air shows, showcasing various aircraft. Highlight attractions comprise aerial performances by the Indian Air Force’s Surya Kiran Aerobatic Team. Dedicated platforms will be provided by the event for exhibitions, chalets and B2B/B2G meetings, allowing networking, partnerships and investment discussions. An Aviation Job Fair will connect industry leaders with aspiring aviation professionals. A curated Civil Aviation innovation Challenge for students will be organized to endorse innovation, problem-solving and industry-oriented thinking among students and professionals, providing them with practical aviation experience. The event will also have a vibrant Cultural Programme reflecting India’s rich heritage, adding an exclusive experiential dimension for delegates and visitors, together with the aviation showcases. An Award Ceremony, continuing the tradition of recognizing excellence and outstanding contributions in civil aviation will also be held. With its strategic focus, Wings India 2026 will be a landmark event that will not only showcase India’s aviation development story but also strengthen global partnerships, drive innovation and chart the future trajectory of the civil aviation sector. Source: PIB

Saheel Singh 19 Jan 2026

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