M'lore crash, surging traffic and fares mark aviation sector

New Delhi: A major aircrash , sudden surge in airfares and a flash strike by Air India employees marked the civil aviation sector in 2010, as the national carrier waited with bated breath to get the second tranche of equity infusion of Rs 1,200 crore in its bid to come out of the red.
The crash of Air India Express Boeing 737-800 in Mangalore claiming 158 lives, was the blackest spot on the Indian aviation scene in the year, forcing government to take immediate steps to have proper safety mechanisms in place.
The year saw a rebound in passenger traffic growth bringing some respite to the cash-strapped airlines, with the no-frill carriers benefitting the most. As a result, IndiGo narrowly tipped Air India (Domestic) to corner more market share in November, placing itself in the third position after Jet Airways and Kingfisher Airlines.
Not to lose an opportunity to make money as air traffic grew at a fast pace, Indian carriers started charging high fares even during the non-peak periods.
The air fares, particularly the last-minute or spot fares, rose substantially in October-November with some Indian carriers raising spot fares by as much as three-four times on high density routes, forcing government to intervene.
Following an uproar among the travelling public, the government stepped in last month to sternly warn airlines to reduce airfares within a week or face action. The warning and measures by the Directorate General of Civil Aviation (DGCA) brought down the ticket prices by 20-25 per cent.
26/12/10 PTI/Times of India

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Dec 2010