You are here:HomeEconomy

Air traffic growth to slip by 2.5 per cent in FY13: CMIE

close

New Delhi:

Air traffic growth may decline by 2.5 per cent in FY13 as travel is being impacted by higher fares, grounding of Kingfisher Airlines and overall subdued consumer sentiment, think-tank CMIE said.

"We expect total passenger traffic to decline by 3.2 per cent year-on-year in the second half of FY13. In 2012-13 as a whole, the passenger traffic growth is expected to fall by 2.5 per cent," city-based Centre for Monitoring Indian Economy (CMIE) said in its report.

Even the DGCA data for the January-November period, released recently, shows a three per cent negative growth during the period.

According to the DGCA data, the total number of passengers carried by the domestic airlines in the first eight months of the fiscal stood at 534.14 lakh, marginally less than 550.33 lakh fliers during the corresponding period of the previous year.

Domestic passenger traffic accounts for almost 72-74 per cent of the total air passenger traffic.

Observing that the air traffic scenario is expected to remain dull in the coming months, which happens to be the lean period for the domestic carriers, the CMIE report said the factors such as higher air fares, capacity reduction due to the suspension of Kingfisher Airlines' licence are likely to have their impact on the growth in the second half of the fiscal year.

Quoting the data put out by the Airports Authority of India, the report said air traffic growth in April-September
period reflected a 1.8 per cent fall at 77 million passengers as compared to 78.4 million passengers handled by the country's airports in the same period a year ago.

CMIE attributed this decline in growth to factors such as global economic slowdown, sharp increase in air fares and capacity reduction by operators particularly grounding of the Kingfisher Airlines since October, it said.

Story first published on: December 31, 2012 07:58 (IST)

MORE FROM NDTV

FROM THE WEB

MORE FROM THE WEB
MORE FROM NDTV

For Profit Update,
Follow NDTV on Pinterest

Post your comments:

Social Sharing

Advertisement

Advertisement

 

More From NDTV

More From the WEB

  • BSE
  • NSE
Company Price (Rs.) CHG %
APOLLOTYRE 173.00 7.49%
CROMPGREAV 188.85 6.57%
ARVIND 192.00 6.19%
IRB 117.10 6.07%
More from Top Gainers »
Don't Miss

Advertisement

Market Data provided by © Accord Fintech.
© Copyright NDTV Convergence Limited 2014. All rights reserved.