Global air passenger demand rose 2.7 per cent in January year-on-year, but Indian domestic air traffic shrank by about five per cent in the same month.
India’s domestic market was in negative territory with a 4.9 per cent decline in demand and 5.3 per cent capacity reduction. Load factors stood at 75.9 per cent, according to latest statistics of IATA (International Air Transport Association), a body representing 240 airlines that handle about 84 per cent of global air traffic.
It pointed out that one of the major domestic players has effectively exited the market (referring to Kingfisher Airlines), weak economic growth, rising infrastructure costs and the impact of high fuel prices (being exaggerated by excessive taxation) were the factors affecting air traffic in the country.
However, over the past two months several carriers in India announced mega ticket sales at discounted prices and it is yet to be seen, whether such promotional ticket schemes would spur any growth in air traffic.
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