ATF consumption growth slows on less traffic

New Delhi: It’s always a good indication of growth in this sector. So, when aviation turbine fuel (ATF) consumption in December grew much slower than the average for the current financial year, there were concerns.
This was reinforced by domestic passenger traffic also growing by only single digits in December, after a gap of two and a half years. However, sector experts say fears on the score of growth are probably overdone.
Jet fuel consumption in December grew 6.7 per cent, below the cumulative growth of 10.3 per cent during April-December. ATF consumption growth was 13.5 per cent in the 2010-11 financial year and 10.3 per cent in 2009-10.
Aviation experts agree there was some slowing in December. “It is due to the higher base effect of the earlier year, coupled with the fall in international travel due to the rupee depreciation and global slowdown,” said Amber Dubey, director, aviation, at global consultancy KPMG. International passenger growth in November was 5.8 per cent, compared to growth of 11.2 per cent during the same period last year.
12/02/12 Mihir Mishra & Ajay Modi/Business Standard

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Categories: Indian Aviation- In General Feb 2012