The Indian aviation sector is on the cusp of a change as airlines look to induct a record number of aircraft. This, analysts said, will put the sector on a growth runway, though keeping it viable for only long-term investors.
According to Vinit Bolinjkar, head of research at Ventura Securities, expectations of strong air traffic, coupled with low penetration, is the prime reason for a solid long-term outlook.
"India's air traffic is expected to grow at 25-30 per cent over the next three years. Indian airlines are building their capacities to support the growing domestic demand, as well as tap international routes to expand their networks. All of this is the reason for record aircraft orders by airlines," he said.
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