Why India's aviation industry is taking off

"Indians want to spend money. They're one of the world's biggest spenders today." That's the explanation Neerja Bhatia, VP of India Etihad, offers for why India is now the world's fastest-growing aviation sector. "If you look at the past, an average middle-class family would take one domestic holiday a year," he said. "Today the trend has changed." International carriers want in on the action. In 2013, India's Jet Airways partnered with the UAE's Etihad Airways. With Jet having the widest domestic network in India, there were suddenly dozens more routes, and tens of thousands of seats, connecting India to the Abu Dhabi hub. Together, the partnership holds 21% of India's aviation market, meaning about one in five fliers in India board either Jet or Etihad.<br/>India's airspace hasn't always been so lively or attractive. The government had a monopoly on national air carriers and strict aviation policies blocked foreign ventures. That all changed with de-regulation in 1994. Air India, the country's national carrier, has been carrying the India flag around the world for decades. But its future is uncertain, with today's runways more competitive than ever. Low-cost carriers now rule Indian skies, with the likes of Indigo and Spicejet accounting for two thirds of the domestic market. While most other airlines are removing frills, however, Vistara, a new full-service carrier, is adding them in. Vistara offers a three-class cabin on short-haul domestic routes: economy, premium economy and business.<br/>