Friday, April 21, 2017

India's civil aviation market slows down after a period of hyper growth

Civil aviation, one of the happening sectors in India that skipped demonetisation blues, is showing signs of slowing down. The domestic air traffic growth came in at 14.91 percent for March, down from 15.77 percent in February and 25.13 percent in January. The weak data did not stop SpiceJet shares from hitting a new 52-week high of Rs 107.40 on BSE on Friday.
In the last three months of calendar year 2016, the growth rate was high at 23.9 percent (December), 22.45 percent (November) and 23.2 percent (October).
Twelve Indian carriers flew 90.45 lakh (9.04 million) passengers last month, a growth of 14.9 percent from 78.72 lakh (7.87 million) in March 2016, according to DGCA data released Thursday.
The quarterly (January-March 2017) data showed that the 12 airlines carried 272.79 lakh (27.27 million) passengers, marking a growth of 18.59 percent from the corresponding period last year.
Budget carrier IndiGo maintained its position as the biggest in terms of volumes, carrying 36.11 lakh passengers, a market share of 39.9 percent, in March 2017.
Jet Airways's market share was 15.4 percent while state carrier Air India ended with 13 percent. Budget carriers SpiceJet and GoAir's share stood at 13.2 percent and 8.9 percent, respectively.
21/04/17 SV Krishnamachari/IBTimes