Air traffic slides 15% in June

New Delhi: Domestic fliers are now deserting planes and settling for other modes of transport. On Friday, the aviation ministry released figures that showed the number of fliers in the school holiday season of June was 35.06 lakh — a good 6 lakh less than the number in May — showing a 15% fall in one month. The Indian aviation growth story is in air pocket due to oil crisis.
Wadia group-owned GoAir, which has cancelled the largest number of flights, led the fall with 33%. The Kingfisher-Deccan combine flew nearly 19% less passengers and Jet-Jetlite suffered an erosion of 14%. All airlines have reduced flights to cut losses. GoAir which once claimed to have 561 weekly flights reduced the number to 800 per month in June and is may reduce it by another 300.
While airlines expected a fall in numbers from July to September, the lean season, the early fall in June has come as a shock. Now many airlines will start renegotiating lease terms and may ask pilots to have a take home salary depending on the number of hours they fly.
For instance, a Boeing 737-700 has a lease rental of $ 300,000 and airlines took them on the assumption of using a plane for 10 hours 30 days a month. So the lease rental comes to $10,000 an hour. If oil prices continue to rise and airlines are forced to cancel flights, then they could ask lessors to accept a fee on the number of hours the plane flies for.
12/07/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Jul 2008