Saturday, November 05, 2016

India continues on double-digit annual traffic flight path: IATA

In its latest report, IATA said that there continues to be “little sign of any slowdown in growth” in the domestic India and China aviation markets, with domestic traffic surging by 23.6%, and 14%, year-on-year, respectively, in September.

“Such strong growth rates relate to sizeable increases in real consumer spending in both countries, although growth in India is well ahead of what the usual elasticities would imply. This is partly because airlines are adding airport-pairs and flight frequencies, which reduce journey times for passengers and has the same stimulatory effect on demand as a cut in fares,” it said.

Both Indian and Chinese airlines have increased the number of airport-pairs served in 2016, but average flight frequencies in China have fallen compared with last year, it noted.

Globally, the domestic demand climbed 7.2% in September, compared with the same month last year, which was up from the 4.1% year-on-year growth recorded in August.
05/11/16 Deccan Herald