Domestic air traffic shrinks, but IndiGo continues to gain

New Delhi: The government’s decision to allow foreign airlines to invest in Indian carriers has brought optimism to the sector, but it is unlikely to expand domestic aviation, at least in the short term.
Over the last three months, the domestic air travel market has shrunk by about seven lakh passengers! Only 43.69 lakh Indians took to the domestic skies in August against 45.37 lakh in July and 50.37 lakh in the month of June.
So will this fiscal see any growth in domestic traffic at all? . AP
So will this fiscal see any growth in domestic traffic at all? All eyes are now trained on the festive season, which begins in October, for traffic to improve. But concerns remain.
Princy Singh and Dinesh Harchandani of JP Morgan noted in their note to clients that aviation turbine fuel (ATF) prices are near all-time highs of the past 10 years and, coupled with a fall in passenger traffic over recent months, the pricing power of airlines is expected to remain limited.
18/09/12 Sindhu Bhattacharya/First Post.com

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Categories: Indian Aviation- In General Sep 2012, Indigo Airlines Sep 2012