The month of October had traditionally been a strong season for air traffic. But this year, domestic passenger traffic declined steeply by 15.7 per cent in October. Industry players and aviation analysts say that the reason behind this is a combination of factors, including high air fares and a slowing economy.
The air fare jump was nearly 30 per cent as compared to last year, according to aviation experts. The grounding of Kingfisher Airlines, which had 19 per cent market share last year, has had an impact on the soaring air fares.
“Though Indigo and SpiceJet have added capacity, the presence of an additional airline makes a difference in the air fares, especially during the peak season,” said Sanjay Bhasin, Managing Director (MD), Goibibo, online travel portal.
According to data submitted by various airlines, the number of domestic passengers dropped to 45.55 lakh in October from over 54 lakh during October 2011.
25/11/12 Nivedita Ganguly/Business Line
