All Nippon Airways Co. (ANA) and Japan Airlines Co. (JAL), Japan’s leading airlines, have joined forces with major Indian airlines in a strategic bid to tap into the surging passenger demand between the two countries. The partnerships are designed to take advantage of India’s booming economy and its rapidly growing population of over 1.4 billion people.
Both ANA and JAL have entered into code-sharing agreements with top Indian carriers, offering passengers convenient and seamless travel options. Starting October 27, JAL will launch its code-sharing partnership with IndiGo, India’s largest airline, providing routes between Haneda Airport and Delhi, as well as Narita Airport and Bengaluru. This move allows JAL passengers to fly on IndiGo-operated flights while earning JAL mileage points, enhancing travel convenience and rewards. JAL plans to expand this code-sharing arrangement to include domestic flights within India, making it easier for passengers to reach key cities like Chennai, which currently lack direct connections from Japan.
In May, ANA launched its own code-sharing arrangement with Air India. This partnership covers ANA’s routes between Haneda and Delhi, Narita and Mumbai, as well as Air India’s Narita-Delhi service. As a result of this agreement, ANA witnessed a 20% increase in passenger numbers between June and August compared to the previous year. Tsuneya Katagiri, ANA’s chief representative in India, highlighted the airline’s goal of expanding code-sharing to domestic flights within India, stating, “We want to capture the growing demand from business travelers and tourists in both countries by offering more convenient options for travel.”
The surge in passenger traffic between Japan and India is a direct result of increased economic and cultural ties between the two nations. The Japanese Embassy in India reports that the number of Japanese companies operating in India reached 4,901 in 2022, representing a 2.7-fold increase compared to a decade ago. This growth is expected to fuel a rise in business travel. The tourism sector is also flourishing, with data from the Japan National Tourism Organization revealing that the number of Indian tourists visiting Japan in 2023 more than doubled compared to a decade ago, reaching 166,394 visitors. India’s continued economic growth and rising income levels are anticipated to drive further increases in visitor numbers.
India’s overall air traffic is experiencing a rapid expansion. In fiscal 2023 (April 2023 to March 2024), the country recorded 220 million air passengers on both domestic and international routes, exceeding pre-pandemic levels. This growth is a key priority for Indian Prime Minister Narendra Modi, who emphasizes the importance of expanding the country’s air traffic network. The government is actively working to develop and expand existing airports while building new ones to accommodate this surge in demand.
India’s aviation market, now the third largest in the world after the United States and China, is witnessing fierce competition among airlines for passengers. Major carriers are strategically positioning themselves to capitalize on the growth.
IndiGo, which began as a low-cost carrier in 2006, has experienced remarkable growth. Today, it operates domestic routes to over 85 cities and international routes to over 30 cities. With a 60% market share in India’s domestic sector, IndiGo remains independent, unaligned with any international airline alliance, providing it with flexibility in its operations and partnerships.
Air India, founded in 1932, has a rich history. After years of financial difficulties as a state-run company, the airline came under the control of the Tata Group, India’s largest business conglomerate, in 2022. Air India is now part of the Star Alliance, which includes ANA, and has plans for further expansion, with Singapore Airlines set to invest in the carrier as part of its transformation.
The partnerships between Japanese and Indian airlines are well-timed, coinciding with the surge in passenger travel between the two nations. The strategic code-sharing agreements enable both ANA and JAL to offer passengers more destinations and greater flexibility, positioning them to benefit from the increasing demand. With business and tourism booming, these collaborations will strengthen the economic and cultural ties between Japan and India, setting the stage for even more growth in the future.
