Aggarwal said the gap stems from weak regional connectivity rather than a shortage of airport infrastructure. India has built airports at a fast pace, he said, but that capacity needs to be put to use by linking smaller cities to the network rather than concentrating traffic among major hubs. He pointed to about 10 million people who travel by train daily in India, compared with only 400,000 to 500,000 air passengers a day.

He suggested airlines deploy regional jets and smaller aircraft to reach Tier-2 cities as their fleets grow, arguing this would draw on the airport capacity that currently sits idle.

Aggarwal also said high taxation on aviation, which he said treats flying as a luxury good, is holding back the industry's growth.

On international service, Aggarwal estimated the long-haul market carries 25 to 30 million passengers a year and generates more than half of the aviation sector's revenue. Indian carriers hold less than 20 per cent of that long-haul market, he said.

Aggarwal acknowledged that airspace closures are disrupting international routes to the west of India, but he described those disruptions as temporary.