INDIA is one of the fastest-growing air travel markets in the world and aircraft manufacturers are taking advantage of the boom.

The International Air Transport Association (IATA) expects annual passenger growth in India to be 8.4 per cent until at least 2009. The Indian middle class is becoming increasingly affluent and now has the money to fly, rather than take an often-delayed train or risk life and limb on India’s roads.

The deregulation of Indian airspace has also helped to spawn numerous new airlines in the past couple of years.

After the monopoly of state-run Indian Airlines ended a decade ago, Jet Airways and Air Sahara were launched.

However, it was the founding of Air Deccan as a no-frills carrier in 2003 that really brought the market alive.

Last year, SpiceJet, Go Air and Kingfisher Airlines were all launched and another three or four carriers are thought to be preparing for launch in the next 18 months.

This surge in airline growth has been good for the two major planemakers, Boeing and Airbus.

Indian carriers have accounted for a large number of the biggest orders in recent years, including IndiGo’s surprising $5 billion (£2.6 billion) order for Airbus placed last year.

At the Farnborough Air Show last month, Go Air bought another ten Airbus A320s, worth $670 million.

However, analysts are concerned that competition and rising fuel costs could lead to commercial casualties in this embryonic market.

Jet Airways admitted last week that price-cutting by its rivals had caused a first- quarter loss of 440 million rupees (£5 million), compared with a profit of R950 million (£11 million) the previous year.

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