Domestic airlines are ramping up their fleet to service smaller towns, where demand is rising on back of growing disposable incomes and expanding businesses. Homegrown carriers are expected to add 50 aircraft in the next five years on regional routes, which are witnessing traffic growth of 20% a year, nearly double the growth in metros.

In the past, private airlines bypassed smaller towns because of poor seat loads but looming saturation in demand from big cities and growing pressure on bottom lines is forcing them to tap Tier-II and -III cities. The aviation industry classifies non-metros as tier-II destinations and even smaller cities as tier-III.

There are 13 major airports where traffic is more that 1.5 million passengers a year. Of these, top six are graded tier-I and the rest seven as non-metros. This month, low-cost carrier SpiceJet commenced regional operations, including short-haul Vizag-Tirupati, Hyderabad-Vizag, Hyderabad-Mysore flights. It has taken delivery of its first of the fourteen 80-seater Bombardier turboprops it ordered this year.

Though budget carrier IndiGo has begun international flights recently, it has decided to retain its focus on regional operations, according to president Aditya Ghosh. The Gurgaon-based regional links include Indore-Nagpur and Bangalore-Nagpur-Indore. Not to be left behind, full service carriers too are ready with their regional blueprint.

Jet Airways, the country's largest airline by market share, is raising its capacity over the next two years. It will induct more ATR planes in order to service smaller airports. "Tier-II and -III towns are our main focus now," said Gilbert George, senior general manager (India, sales). Jet will also add three Boeing 737-800 NG and four 737-900 in six months.

ET