Regional aircraft manufacturer ATR expects India’s next phase of aviation growth to emerge beyond metro cities, with tier-2 and tier-3 markets offering significant opportunities as regional connectivity expands.
Speaking to businessline, Alexis Vidal, Senior Vice President Commercial, ATR, said that while India has become the world’s third-largest domestic aviation market over the past decade, a large share of inter-city travel outside metro regions continues to be served by rail and road transport.
According to Vidal, nearly 90 per cent of India’s inter-city trips fall within a distance of 740 kilometres, which aligns with the operating range of turboprop aircraft.
However, only about 3 per cent of these journeys are currently undertaken by air.
According to the regional aircraft manufacturer, government-led regional connectivity initiatives have contributed to the expansion of aviation access in smaller markets.
On the upcoming modified UDAN (Regional Connectivity Scheme), the regional aircraft manufacturer noted that investments in additional airports and extended route financing could improve the accessibility and viability of regional air travel across the country.
Under the initial UDAN scheme, more than 600 routes have been operationalised, connecting 93 unserved and underserved airports.
Besides, the Centre plans to increase the number of airports in the country to 230 by 2030.
These developments, Vidal said, create a foundation for regional aviation growth, particularly in smaller cities where direct connectivity remains limited.
As per insights from ATR’s MobilityMonitor, a backcast model analysing journeys across transport modes, India has the potential for more than 400 additional regional air routes, which could add approximately 35 million annual passengers in the regional segment.
27/04/2026 Rohit Vaid/Business Line
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