Kolkata: India’s domestic air passenger traffic growth, which had witnessed a slump on the back of the grounding of Jet Airways and the general slowdown in the economy, is expected to pick up this year.
According to Balu Ramachandran, Senior Vice-President, Cleartrip, if the divestment of Air India goes through this year, then it would bring about higher capacity addition, thereby leading to “robust” growth in passenger traffic.
“We had a fairly catastrophic event this year with Jet Airways going down, and subsequent to that the overall capacity addition in the Indian market by all domestic carriers came down to about 4-5 per cent during the April-October period. This is in stark contrast to the growth of 18-20 per cent in the same period last year,” Ramachandran told BusinessLine.
The drop in capacity addition led to a decline in passenger growth numbers, which came down to 2-3 per cent in 2019, against a growth of 16-18 per cent in 2018. The drop in capacity addition also led to an increase in fares which went up by nearly 8 per cent on year-on-year basis. The higher fares also impacted consumer demand to some extent.
03/01/20 Shobha Roy/Business Line
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According to Balu Ramachandran, Senior Vice-President, Cleartrip, if the divestment of Air India goes through this year, then it would bring about higher capacity addition, thereby leading to “robust” growth in passenger traffic.
“We had a fairly catastrophic event this year with Jet Airways going down, and subsequent to that the overall capacity addition in the Indian market by all domestic carriers came down to about 4-5 per cent during the April-October period. This is in stark contrast to the growth of 18-20 per cent in the same period last year,” Ramachandran told BusinessLine.
The drop in capacity addition led to a decline in passenger growth numbers, which came down to 2-3 per cent in 2019, against a growth of 16-18 per cent in 2018. The drop in capacity addition also led to an increase in fares which went up by nearly 8 per cent on year-on-year basis. The higher fares also impacted consumer demand to some extent.
03/01/20 Shobha Roy/Business Line
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