Demand spurt will help airlines soar

The airline industry in India has seen positive growth tends in the last few months — the industry closed the year 2010 carrying 50 lakh passengers in a single month — in December — and the going has been good so far this year.
But what happens to the growth momentum once the peak travel season ends in March? So far, market experts and airlines do not seem to be too concerned about it.
With economic recovery and increasing purchasing power, demand for travel is unlikely to dwindle, and the expectation is that the airline industry will fare well in the coming months too, say industry experts.
“Indian air travel market is expected to surpass 57 million mark in 2011, assuming that the sector does not face any major setbacks. In March 2010, domestic airlines in India carried about 3.9 million passengers; the very next month this figure jumped to 4.2 million. The airline sector will fare equally well post March 2011,” Frost & Sullivan's Aerospace & Defence Analyst for South Asia & Middle East, Mr John Siddharth, told Business Line.
14/02/11 Shubhra Tandon/Business Line

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Categories: ndian Aviation- In General Feb 2008