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Indian Civil Aviation Driven By Low Cost Domestic Market
Domestic and international Indian air traffic has increased and would have been higher if fuel prices had been lower, a top industry consultant said.
Kapil Kaul, CEO – India and Middle East for consultancy firm Centre for Asia Pacific Aviation (CAPA) said domestic air traffic grew faster than international.
For the first time in years, Indian carriers saw modest profit of $122 million, mostly owing to low fuel prices.
“The impact of fuel price on profitability is estimated at about 12 per cent,” Kaul said at the NewsX – Sunday Guardian Defence and Aerospace Summit in New Delhi on Wednesday.
“Amongst the top 20 LCCs (low-cost carriers) in the world, IndiGo was the fastest growing over the last 12 months with seat capacity up almost 28 per cent year on year,” he said.
IndiGo is leading CAGR among the local LCCs. From FY 2002 – FY 2017 this rate was 48.2 per cent. “This is something to be proud of as Indians,” Kaul said.
Jet Airways was the only airline to see lower costs, all others saw an increase.
Last 10 year’s traffic growth has been more than the growth achieved in last 50 years. Isaiah Oliver Authentic Jersey
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