Aviation slump hits domestic flyers hard

New Delhi: The number of people taking domestic flights has fallen by 18.5%. This September's low is the straight fourth month in a row that domestic flyers have kept away compared to last year.
When airfares started going up earlier this year with rise in jet fuel prices, small town fliers were the first to shy away from flying. So places like Goa, Patna, Thiruvananthapuram, Guwahati, Calicut, Srinagar and Udaipur started seeing domestic passengers opting for cheaper ways of travelling.
But now the negative trend is visible in most cities, big and small. The number of domestic flyers this July fell to 58.51 lakh compared to 68.77 lakh last July, a fall of -14.9%.
The combined impact of high fuel prices and an economic slowdown has meant that as airlines raised fares, lesser and lesser number of people could afford to fly. With passenger numbers falling, airlines are now slashing capacity by withdrawing flights and returning excess planes. Despite reducing flights by 20 to 25%, airlines are still flying with nearly 40% seats unsold.
Many airlines reported their lowest seat factor in September, with the figure ranging from 64% for Jet to 50.5% for SpiceJet. Clearly, low cost carriers have lost their sheen due to constant fare hikes now as many of their patrons have gone back to trains and buses.
Aviation minister Praful Patel warned that unless the base price of jet fuel and taxes on it were not rationalised, some airlines may have no option but to close down.
19/10/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Oct 2008