Air traffic also gets a crude blow

New Delhi: Continuous hike in basic fares and fuel surcharge are taking toll on passenger traffic growth in the aviation sector.
The number of domestic fliers has fallen by 5 lakh from June to July as just 30.85 lakh people took to the skies last month. While passengers figures have been falling for past few months now, July was different on two counts - the number of domestic passengers was less than same period last year and most big airlines recorded their lowest ever load factors so far this year.
Though global crude is cooling off now, its record highs earlier have led to a huge rise in jet fuel prices. Coupled with over-capacity in skies, domestic airlines are feared to lose anywhere up to Rs 10,000 crore this fiscal. To avoid closure, they all raised fares and in the process lost passengers.
Since July to September is low season for travel, airlines are now waiting for next month as August is expected to be as bad as July. "... we will have to see how traffic picks up in peak season from next month and if numbers don't improve, fares will have to be looked at,'' said an airline CEO.
In July, Simplifly Deccan saw its load factor dipping to 49.2% - less than even Air India (domestic)'s figure of 55.5% - as most of its metro operations have made way for Kingfisher flights on those routes for better revenue realization.
13/08/08 Times of India

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Categories: Indian Aviation- In General Aug 2008