Domestic carriers advantageous as India-China agree on flight resumption  

As India and China are set to restart direct flight services after five years, domestic carriers are expected to capture more share with Air India and IndiGo prioritising international expansion and widening their network in the neighbouring country.

The flight between the two countries were stopped during Covid in early 2020 and did not resume after strained diplomatic relations between the two countries following border clashes. There are reports that flights are expected to resume later this year.    

The resumption of non-stop service is also expected to benefit tourism and business travel while supporting robust trade flows, which totalled more than $131 billion in 2024. China is among the top 10 international destination for freight movement from India.

Chinese carriers dominated the sector with its operators Air China, China Eastern, China Southern, and Shandong Airlines enjoyed 70% market share on the route while Indian operators – Air India and IndiGo—having 30%. India’s largest carrier IndiGo has already expressed its willingness to start flights between the two countries once services are cleared.

Aviation experts say that India’s aviation scenario has changed post Covid with Indian aviation players looking to expand their international footprints. Air India, IndiGo, SpiceJet and Akasa are all eyeing to connect new destinations on international sector.   

Ameya Joshi, an aviation analyst, said that India-China flight resumption has been long overdue and irrespective of the hostilities the trade has been going on over the years.

“The direct flights will help traders and airlines alike with traders currently traveling via third country and airlines will be able to cater to this traffic when flights resume. Airports, airlines and passengers will gain from this with the Chinese carriers having traditionally deployed wide body aircraft on the routes to India,” he said.

He further explains that with air services agreement linked to frequencies per week, the Chinese carriers have a head start.

Airlines from both the countries lost on potential passenger loads due to lack of direct air connectivity between India and China and stringent visa restrictions. Passenger traffic between two countries is currently solely through connecting hubs in South and Southeast Asia and is less than half of what it was in 2019.