'Domestic aviation industry heading for stability'

New Delhi: The slowdown-hit domestic aviation industry is witnessing some stability in passenger traffic, though it would take some more time for the overall recovery, aviation experts and organisations feel.
The latest official figures have shown a marginal improvement in air traffic with domestic carriers flying 3.63 million passengers in August compared with 3.59 million in the month before.
In the three weeks of September, there has been a 14-15 per cent rise in passenger traffic compared with that in last September, Executive Director of the Bird Group, Ankur Bhatia said. The company provides a large number of aviation related services to major airlines, MROs and related companies globally.
Noting that improvement in air travel during the festival season was an annual feature, he added the upward trend in passenger traffic was likely to continue beyond this season unless retarded by any economic, political or security crises.
The current upward trend would lead to recovery by the end of the current financial year if no external factor contributed to its stalling, Bhatia said.
He also estimated that though the domestic air traffic had dipped from the 2007 levels last year, it would remain at the 2008 level this calender year too.
To questions on the rising prices of aviation turbine fuel, the Bird Group ED said the prices were likely to stabilise at rates below $100 per barrel, thus keeping airline costs under check. Oil prices have been the single largest component of rising costs and losses for the airlines.
The cash-strapped airlines in India jointly account for about one-third of the global losses, amounting to an estimated $3.6 billion, according to the International Air Transport Association (IATA).
22/09/09 Press Trust of India/Business Standard

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Categories: Indian Aviation- In General Sep 2009