Domestic air traffic to grow to 130 million in FY18 says CAPA
However, industry-wide losses to widen because of cost pressure and fall in yield.
Domestic traffic has been rising at 20 per cent plus for the past three years and, in 2016, carriers flew close to 100 million passengers. The growth trend will continue and airlines will add over 60-65 planes. Most of these additions will be by low cost airlines. CAPA expects industry-wide losses in the country to grow from $250-300 million to $ 380-450 million in FY17 and FY18, respectively. Losses are likely to increase in Air India, AirAsia India and Vistara. Further, airlines will face yield pressures and find it difficult to cut costs. Other domestic airlines will continue to make profit.
Kapil Kaul, South Asia CEO of CAPA, said that the share of low-cost airlines in India will rise from the existing 65 per cent to 80 per cent. “IndiGo is expected to induct two aircraft every month till March 2018 and the fleet size is expected to reach 160. IndiGo’s market share will reach 55-60 per cent in two years and this will increase the strategic compulsion for other airlines to expand fleets in order to remain relevant in the market,” Kaul said.
News Source: www.business-standard.com
You might also like
Explore Madaba Art- Mosaic
Madaba, “the City of Mosaics”, located in Central Jordan is best known for its spectacular Byzantine and Umayyad mosaics, and is home to the famous 6th century mosaic map of
Data says 25% rail crew not picked as per rule
Twenty-five per cent of the crew members running Indian Railways are not picked according to rules, according to official data, prompting the transport behemoth to ask railway zones to adhere
Unlocking tourism: long way to go before returning to normalcy
Last three months have been the worst time for the global tourism industry. The massive spread of the coronavirus or COVID-19 all over the world brought the world’s tourism to
