Domestic air passenger volumes (pax) have been consistently increasing and are likely to reach 310 million by financial year 2017-18, says India Ratings and Research (Ind-Ra).
This will be driven by the aspirations of the middle class to travel in flights and a reduction in price differential between air travel and rail journey, including the recently increased cancellation fees for train tickets.
The slowdown in economic growth during the first half of the current decade had minimal impact on pax growth.
However, the 2008 global economic crisis and fuel and currency crises in fiscal 2012-13 had a pronounced impact on air traffic growth. The gradual increase in private final consumption expenditure has been buttressing India’s pax growth since early fiscal 2013-14.
Ind-Ra’s sensitivity on economic growth also underlines the strong underlying fundamentals and continued growth in pax volumes. Matt Schaub Authentic Jersey