Friday, December 09, 2016

Airlines capacity to jump to 25% over next 3-4 yrs: ICRA

The airlines are set to add an additional capacity of 20-25 per cent over the next three to four years, even as mounting competition and price war are eating into their yields impacting the bottomlines, says a report.
Despite falling yields, due to increasing competition and the resultant hit on profitability, the airlines' capacity addition is set to clip at CAGR of 20-25 per cent over the next three-four years, domestic rating agency ICRA said in a report today.
"The industry-wide ASKMs are slated to grow at a strong CAGR of 20-25 per cent over next 2 to 4 years. This will be driven by sizeable order backlog of the market leader Indigo, and also at GoAir, Jet Airways and SpiceJet coupled with the expected fleet expansion of Vistara and AirAsia.
"The capacity expansion will also be boosted by the launch of two new airlines, Air Carnival and Zoom Air," the report said.
08/12/16 PTI/The Times Of India
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