Saturday, May 06, 2017

India Slips To Second Spot In Domestic Aviation Market, IATA Blames Notes Ban

India lost its fastest growing domestic aviation market tag to China in March as it registered the lowest growth in 18 months, primarily due to the notes ban, global airlines’ grouping IATA has indicated.
The domestic passenger traffic in India in March grew at 14.6 per cent while in China it was at 15.1 per cent.
“This is the first possible sign of reduced cash supply and wider economic uncertainty weighing on demand,” said International Air Transport Association (IATA).
Prime Minister Narendra Modi had on November 8 last year announced scrapping of 500 and 1,000 rupee notes.
India was at the top of the global charts for the domestic air passenger growth for 23 straight months until February.
“China overtook India as the fastest growing domestic market at 15.1 per cent, posting the fastest year-on-year domestic growth rate for the first time in two years,” according to IATA.
The Association attributed the passenger growth in China to its robust services sector growth as well as supply developments.
As for India, it said that after posting over 20 per cent growth in domestic passenger market for 13 consecutive months until January this year, the demand for domestic air travel dropped to 17 per cent in February and 14.6 per cent in March.
05/05/17 PTI/The Arunachal Times