Air India backs Modi's hub-and-spoke model, plans Varanasi international routes
Synopsis
Key Takeaways
Air India on Wednesday endorsed Prime Minister Narendra Modi's 'hub-and-spoke' aviation framework as a transformative policy shift, announcing plans to launch international connectivity from Varanasi under the proposed model. The Tata Group-owned carrier's CEO and Managing Director Campbell Wilson described the government's initiative as pivotal to strengthening India's position as a global aviation hub.
What the hub-and-spoke model entails
The framework aims to convert India from a predominantly end-destination market into a global transit ecosystem, leveraging tier-II and tier-III airports developed under the UDAN scheme to feed international routes through major hubs. Civil Aviation Minister Ram Mohan Naidu noted that nearly 35 per cent of India's international passengers currently transit through foreign hubs such as Dubai, London, and Singapore. The government seeks to reverse this by developing six globally competitive Indian hubs: Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai.
Air India's expansion strategy
Wilson credited the Prime Minister's vision for driving ecosystem development and acknowledged the Civil Aviation Ministry's role in coordinating with stakeholders. Air India's move to introduce international routes from Varanasi is aligned with this strategy, aiming to improve access for travellers from eastern Uttar Pradesh and neighbouring regions. P. Balaji, Group Head for Governance, Risk, Compliance and Corporate Affairs at Air India, said the expansion would help make international travel more accessible for passengers from tier-II and tier-III cities, broadening India's aviation footprint beyond metros.
The structural shift
This marks a fundamental departure from India's fragmented regional aviation model, where secondary airports historically served only domestic routes. By creating seamless connectivity between regional and international destinations, the hub-and-spoke framework is designed to optimise airport infrastructure utilization and reduce passenger dependence on foreign transit hubs.
Government readiness efforts
Minister Naidu recently chaired a high-level meeting to review Delhi Airport's readiness for hub-and-spoke operations. Officials indicated that the framework would enable tier-II and tier-III airports to feed traffic into major hubs, creating a layered network structure. This coordination with airport operators, airlines, and customs authorities is critical to ensuring operational efficiency and passenger convenience.
Broader implications
The model aligns with India's broader infrastructure ambitions under initiatives like Atmanirbhar Bharat, reducing foreign exchange outflow tied to international transit fees and positioning Indian carriers to capture higher-margin connecting traffic. Industry observers note that success depends on coordinated investment in ground infrastructure, slot allocation, and bilateral air service agreements.