Aviation sector records robust growth in 2007: Survey

New Delhi: The civil aviation sector continues to report robust growth in January-December 2007 with domestic passenger traffic recording a growth of 32.51 per cent. The Economic Survey 2007-08, tabled in Parliament on Thursday by the Union Finance Minister, Mr P. Chidambaram, showed that the international air traffic grew by 15.6 per cent during the same period.
The survey points out that the combined number of international and domestic passenger traffic has almost doubled between 2004 and 2007. Similarly, international air cargo reported a growth of 13 per cent while domestic air cargo sector grew by 9.8 per cent during April-October 2007.
Financial health.
Commenting on the financial health of the sector, the survey states that the process of consolidation has started and is likely to enable the airlines to increase their revenues through synergies in operations and also by ensuring optimal utilisation of resources in a capital intensive sector.
During the year, not only did the Government initiate the process of merging Air India and Indian, but the merger of Jet Airways and Air Sahara was also completed and Kingfisher Airlines acquired Air Deccan.
Realising that infrastructure development is a key issue, Airports Authority of India (AAI) started the process of modernising Kolkata and Chennai airports. In Chennai, AAI proposes to construct an integrated passenger terminal capable of handling 20 million passengers annually at an estimated cost of Rs 1,942.51 crore by June 2010.
28/02/08 Business Line

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Categories: Indian Aviation- In General Feb 2008