• Reducing taxes on aviation could make air travel more affordable.
• Annual domestic passenger numbers may rise from 340 million to 1.1 billion by 2040.
• Long-haul flights present a huge market opportunity for Indian carriers.
• Regional connectivity is essential for utilizing airports outside major cities.

This development may indicate a shift in Indian aviation policy towards making air travel more affordable, which could lead to significant growth in passenger traffic and revenue for Indian carriers. The focus on regional connectivity suggests a potential expansion of air travel services to Tier 2 and Tier 3 cities, which could drive further growth in the sector.