Thirty years ago, air travel in India was considered a luxury, with state-owned airlines dominating a landscape of high fares and limited routes. Today, India boasts the world’s third-largest domestic aviation market, with passenger traffic soaring to an impressive 220 million in 2024.

As air travel becomes more affordable and accessible, the sector is expanding at a rate of 6.2%, significantly outpacing the global average of 3.6%. This remarkable trajectory – fuelled by a growing middle class, visionary government policies and the emergence of low-cost carriers – is more than a post-pandemic rebound, with ongoing investments in infrastructure playing a key role in meeting the rising demand for regional connectivity.

Significant macroeconomic expansion fuels air travel demand in India

The underlying reason for India’s aviation boom lies in its continuous economic growth. Rapid urbanisation and a substantial young population are leading to an increasingly dispersed workforce, creating an elevated demand for efficient air transport to Tier 2 and 3 cities. Rising disposable incomes and the expansion of e-commerce are also driving the need for passenger and cargo services to emerging urban centres and underserved areas. Non-metro cities crucial for regional connectivity, such as Ahmedabad, Vijayawada and Guwahati, have borne the fruits of this growth with massive infrastructural expansion in recent years, becoming some of the busiest airports in the country. There is significant potential for other Indian cities to follow suit, given the current air travel rate is just at 0.13 per capita.

Regional aviation in India: Trends & opportunities

In the last ten years, the number of airports in India has doubled to 157 and ambitious plans are underway to add 50 more in the next 5 years. With 60% of turboprop passengers flying through just 23 airports, the market is poised for substantial growth, particularly from smaller airports.

Indian skies are ruled by low cost carriers, commanding 75% of the market share. While there has been an emerging trend of dedicated regional airlines in the last decade, current pureplay regional operators account for only 2% of the overall market.

The accelerated expansion of regional routes and the development of new airports present significant opportunities within India’s aviation sector. This potential is further amplified by the fact that India accounts for nearly half of all global aircraft orders, which is a testament to its extraordinary potential.

According to IATA, India is projected to handle 520 million air passengers by 2037. This exponential growth requires major infrastructure development and strategic policy frameworks to ensure seamless operations. It also sets the stage for the creation of a robust airport ecosystem that fosters job creation and commercial activities, as well as the development of related sectors such as pilot training and aircraft manufacturing.

The impact of UDAN: Policy and progress in Indian aviation

The Indian government’s long-term vision of establishing a robust and interconnected aviation network is founded on the democratisation of air travel. To achieve this, the proactive UDAN scheme (“Ude Desh Ka Aam Nagrik“ meaning “Let the common citizen fly”) was introduced in 2016, with a focus on boosting regional connectivity, stimulating economic growth and making air travel accessible to the wider population.  

By incentivising airlines to operate on less-travelled routes and developing new airport infrastructures in underserved regions, the government promotes regional growth. Improved connectivity drives economic activity in these smaller cities, boosting tourism in unexplored areas and making an impact on local businesses and trade. This, in turn, generates greater demand for air travel.

In nine short years, UDAN has transformed India's transportation infrastructure and contributed significantly to its economic and social development. With the government now proposing a 10-year extension of the scheme, the D328eco from regional aircraft manufacturer Deutsche Aircraft® is ideally positioned to support UDAN’s objectives of making air travel more accessible.

D328eco: The right platform for India's aviation ambitions

The success of initiatives like UDAN hinges on having the right aircraft for the job. The 40-seater D328eco aircraft is purpose-built for regional connectivity, with the right size, a low break-even factor and superior efficiency to enable it to serve a diverse range of operational demands. Built on the legacy of the Dornier 328, this next-generation turboprop offers operators a compelling combination of performance, economics and passenger comfort, making it an ideal for expanding operations and reaching a new generation of travellers in India.

With optimised fuel consumption for shorter flights and short takeoff and landing capabilities, the D328eco can address the key challenges of regional transport in India by opening up new routes to connect people and businesses.

A new generation aircraft with the potential to advance regional air travel in India

Engineered for superior performance and operational economics, the D328eco is truly a turboprop for the 21st century. Built with advanced composite technology, the aircraft is designed to be extremely lightweight. New Pratt & Whitney engines offer exceptional fuel efficiency, paving the way for sustainable air travel with the ability to run on both fossil-based fuels as well as 100% PtL-SAF. The integrated Garmin flight deck is a breakthrough for regional operators, maximising situational awareness and improving efficiency for more effective decision-making. This advanced avionics suite features large touch-based flight displays, performance-based navigation and enhanced synthetic vision, making it a technologically advanced solution for regional air travel.

Exceptional performance capabilities across India’s spectrum of landscapes

India is a vast country with extreme geological and environmental conditions. From the wet and hilly Vindhyas in the east and hot and arid deserts in the west, to the hot and dry Deccan plateau in the south to the icy and challenging mountainous Himalayan region in the north, the conditional demands to operate an aircraft varies significantly depending on where operators are based in India.

The D328eco’s wide range of performance capabilities include a 30,000ft service ceiling, 324 KTS cruise speed and 2,355 ft/min climb rate. Its maximum runway altitude of 3,657m and operating temperature range of -40°C to +50°C ensures exceptional hot and high performance, while offering unrivalled accessibility to challenging and remote airfields across the length and breadth of the country.

A mainline passenger experience for young, independent travellers

With 50% of its 1.458 billion population under 25 years old, India has a substantial young demographic that is eager to travel for business, education and leisure. The D328eco has a spacious modern layout offering elevated comfort and onboard amenities. A sleek modular cabin is equipped with ergonomic seats offering class-leading space, while large overhead bins ensure ample storage for carry-on bags. With a noise level of 78dB, the aircraft is the quietest of any turboprop. Passenger convenience is enhanced by power outlets at each seat, as well as a fully equipped galley where inflight drinks and snacks can be prepared.

The right range, size and economics to grow regional operations in line with the UDAN scheme

In 2024, 90% of all regional flights in India were between 100-300 NM, which is well within the 655 NM range of the D328eco with a full passenger load. Moreover, the 100-300 NM range falls exactly in line with the 800m STOL range at 70% load factor. With its exceptional break-even load factor of 55%, the D328eco platform enables operators to optimise operational ability and profitability in remote and challenging UDAN routes. In addition, the highly efficient PW127XT-S engines provide extended time-on-wing and reduced maintenance costs, further driving down operating costs. With enhanced regional connectivity as the primary goal of the UDAN scheme, the D328eco has the right size, efficiency and economics to help grow and sustain the operation of regional routes in India.

Building the D328eco: Empowering local manufacturing

Beyond its technical advantages, what clearly differentiates the D328eco from other regional platforms is the deep footprint it has in India as part of its manufacturing journey. Deutsche Aircraft is partnering with leading Indian companies to integrate local manufacturing expertise into the D328eco supply chain, actively supporting the aerospace sector.

One of the primary partners is Dynamatic Technologies, a prominent Indian engineering firm with advanced manufacturing capabilities, which will produce the rear fuselage of the D328eco. This is the first time an Indian manufacturer is supplying a major fuselage component for a civilian aircraft.

Deutsche Aircraft also has other key suppliers within the Indian aviation ecosystem, including Cyient, a global engineering and technology company that will design the DFM of the rear fuselage section and SASMOS HET, an Indian solutions provider for aerospace and defence, that will develop the specialised electrical wiring interconnection system.

By facilitating investment, encouraging innovation and developing world-class infrastructure, this aligns perfectly with the Indian government's “Make in India” initiative and aims to generate employment opportunities for its vast young workforce as it transforms India into a global manufacturing powerhouse.

Regional aviation is poised to play a crucial role in trade, tourism and development across India. As passenger numbers continue to soar, collaboration between the government, private sector and global partners like Deutsche Aircraft will be essential in unlocking opportunities within India’s rapidly expanding aviation market. By prioritising access to regional air travel through the UDAN scheme, the D328eco can support India in its quest to develop and establish its regional transportation ecosystem, while laying the foundation for years to come.

Contact Deutsche Aircraft to learn more about how the D328eco can revolutionise your regional aviation strategy.