Air traffic growth to be affected by sharp hike in fares: CMIE

Mumbai: A major financial think-tank has scaled down its forecast on air passenger traffic growth this year from 11 to seven per cent, citing a sharp rise in fares due to a major hike in charges by private operators of Delhi and Mumbai airports.
"We now expect air passenger traffic to grow by seven per cent in 2012-13 as against our earlier estimate of 11 per cent," the Centre for Monitoring Indian Economy (CMIE) said in its latest report.
A sharp rise in air fares in order to pass on the high user development fees at various airport particularly at Delhi and Mumbai was a major contributing factor that has hit passengers volumes, the Mumbai-based think-tank said.
The total passenger volume is expected to stand at 1,737 lakh by March next year, the CMIE projected in its report.
16/08/12 Press Trust of India/Business Standard

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Categories: Indian Aviation- In General Aug 2012