GCCs in Aviation: A Strategic Advantage in 2025

In 2025, the aviation sector is undergoing a transformational change, which is inspired by global travel demand, climate commitments, and increased complex operating pressures. In 2025, it is estimated to reach US $650.33 billion and US $771.26 billion (CAGR 4.36%). It has been evaluated that by 2029, the industry will be facing fuel price fluctuations, talent deficiency, regulatory obstacles, and supply chain rupture. The need for sustainable practices, digital changes, and cost optimization has made strategic innovation indispensable.

The Global Capability Center (GCC) has emerged as an ideal solution to solve these systemic challenges. In cost-effective areas such as India, centralizing important operations such as IT and MRO services allows aviation companies to avail themselves of scale, skilled talent, and digital innovation. India-friendly FDI norms, MRO ecosystems, policy incentives, and comprehensive aviation talent pools make it an ideal destination. This blog explores every major piece of information from the Inductus White Paper, including major operational problems, sustainable aviation strategies, and roadmaps to create aviation-specific GCC in India. It will help to understand how aviation companies can re-establish themselves through well-executed GCC operations in 2025.

Global Market Landscape and Major Trends

Global aviation revenue will reach US $650.33 billion in 2025 and US $771.26 billion by 2029.
Jet fuel is expected to be an average of $87/barrel in 2025, which is 26.4% of the airline operating costs.
Covid-19 recovery, geopolitical risk, and e-commerce air cargo are giving new shape to dynamics in the aviation sector.

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Important Industry Challenges

Fuel Instability: The value of fuel changes due to global conflicts; The SAF cost in 2025 is expected to increase by $3.8B.
Compliance Burden: The regulation costs in compliance, such as Corsia, EU Green Deal, are increasing the burden.
Maintenance cost: The cost of maintenance is expected to reach $692 billion in 2025. Older fleets and grounded aircraft increase stress in this maintenance sector.
Workforce shortage: The aviation industry is currently requiring 35,000 pilots in 2025 and this requirement is projected to increase by 350,000 by 2032.
Cybersecurity: The cybersecurity attacks in the aviation industry, such as the 2024 CrowdStrike outage and lockbit attacks highlight risks.

Cost Area	Value (USD Billion)
Labor	253 (7.6% increase YoY)
Maintenance	692 (0.5% increase YoY)
Fuel	253 (26.4% of ops)

Table: Key Cost Projections in Aviation (2025)

Environment and Stability Target

The SAF adoption rate remains low at <1%, but aims to reach 10% by 2030.
India aims to produce 8–10 million tons of SAF by 2040 and this will generate 1.1–1.4 million jobs in the SAF supply chain.
ICAO NET-Zero Roadmap: 65% from SAF, 19% offset, 13% technology, and 3% carbon capture.

Supply Series and Infrastructure Obstacles

Delay in delivery: Boeing and Airbus are lagging in the delivery of the aircraft due to titanium deficiency.
Engine problems: MRO hubs in Hyderabad and Nagpur serviced over 300 aircraft in 2024, cutting downtime by 15% for regional carriers.
The infrastructure of the airport is getting older; India is aiming to build 350 airports by 2047 (MOCA).

India is the Favorite GCC Destination!!

100% FDI (49% automatic, 51% approved by government) in scheduled air transport.
India’s aviation labor cost is 40–50% lower than Western markets.
The MRO region will grow up to $2.4 billion by 2028 (from $ 800m in 2018).
The cybersecurity of the Indian ecosystem is estimated to be $10B (Nasscom, 2024).
The government has planned to make 121 airports carbon neutral by 2025 and also 25 airports on green energy.

Strategic Roadmap to Establish GCC

Define objectives: Choose from aerospace engineering, MRO, supply chain, and avionics.
Location Strategy: Prioritizing access to infrastructure, talent centers, and IIT/NIT.
Technical Integration: Use AI for predicted maintenance and automate the avionics test.
Policy Alignment: DGCA, FAA, and EASA Certification should avail the PLI scheme.
Stability: SAF R&D, Carbon Tracking and Integrate Green Infrastructure.
Financial Models: Follow BOT, COPO or Flexi Model (Inductus Service Model).

Conclusion

The aviation sector in 2025 is balanced with many types of obstacles—rising fuel prices, shortage of labor, regulatory pressure, and environmental commitments. The construction of an aviation-focused GCC in India presents a strategic route. India’s aviation ecosystem is set to support global development, from reducing operational costs to increasing stability and cybersecurity.

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By taking advantage of India’s policy support, workforce scale, and upgradation of infrastructure, aviation enterprises can reduce risks and promote large-scale innovation. Companies make their operations safe for the future, and their change should be used as strategic centers of innovation.

For more information, case studies, and implementation stages, read the entire white paper,

“A GCC business case for the aviation industry.”

frequently asked questions (FAQs)

How does GCC support digital changes in the aviation industry?

GCCs help aviation companies to adopt emerging techniques such as AI, IOT and cloud computing to customize operations, improve customer experience, and promote large-scale innovation.

What specific tasks can be handled by GCC in aviation?

Works include fleet and maintenance analysis, revenue management, pricing optimization, loyalty program management, cybersecurity, crew planning, and digital product development.

How do GCC airlines improve operating efficiency?

Airlines can improve their operations with IT support, centralizing processes such as data engineering and customer service analysis, helping reduce GCC costs, automating workflows, and increasing turnaround speed.

Which airlines have established GCC in India?

Companies such as American Airlines, Emirates, Lufthansa Group, and Boeing have either established or exploring GCC in India to make technology and digital operations internal.

How long does it take to install GCC for an aviation firm?

With GCC counseling services or the GCC-e-Service model, companies can set up a completely functional center in 4-6 months, depending on the scope and location.

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Aditi

Aditi, with a strong background in forensic science and biotechnology, brings an innovative scientific perspective to her work. Her expertise spans research, analytics, and strategic advisory in consulting and GCC environments. She has published numerous research papers and articles. A versatile writer in both technical and creative domains, Aditi excels at translating complex subjects into compelling insights. Which she aligns seamlessly with consulting, advisory domain, and GCC operations. Her ability to bridge science, business, and storytelling positions her as a strategic thinker who can drive data-informed decision-making.