Mumbai: The domestic aviation industry is set to grow at 11 per cent in the medium-term as some of the cyclical variables become less spiteful, ratings agency IcraBSE 2.56 % said in a report.
The industry witnessed a sub-10 per cent compounded annual growth rate in the past five years, it said.
However, pressures in the near-term remains, the report said, adding that the rising disposable incomes and the willingness to spend on air travel is likely to drive demand going forward.
The higher cost of travel and the impact of economic slowdown have affected passenger traffic growth during the current year, which, over the past five years has grown at a CAGR of 9.2 per cent, the report said.
17/02/13 PTI/Economic Times
