Saturday, January 02, 2016

India crowned world's fastest growing aviation market in 2015 as economy takes off

India was the world’s fastest growing aviation market in 2015, expanding more than 20pc as economic growth on the subcontinent picked up.
The country's air travel industry outpaced the 10pc growth registered in China and 5pc increase in the United States, according to International Air Transport Association.
Strong domestic demand and high manufacturing activity helped India's economy to grow 7.4pc between July and September, overtaking China as the world's fastest growing major country.
It is widely expected that the South Asian nation will clock 7.3pc to 7.9pc growth in 2016.
That's good news for the local airline industry, which is also enjoying higher profits thanks to a sharp fall in oil prices.
India’s carriers have lost $10bn in the past seven years as they offered base fares as low as 1 rupee (1p) in a nation where provincial taxes make jet fuel prices the most expensive in Asia.
However, the nation’s oil retailers cut fuel prices, which make up as much as 60pc percent of an Indian airlines’ cost, by 10pc today to the lowest in five years as Brent, the benchmark for half of the world’s crude trading, plunged.
That sents shares in Indian-based airlines higher.
Jet Airways climbed 8.2pc to its highest since January 2011, making it the best performing share on the Bloomberg Intelligence Global Airlines Valuation Peers Index in the past month.
01/01/16 The Telegraph
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