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Indian domestic aviation market shows fastest growth for third year: IATA
According to IATA, the growth was driven “mainly by the comparatively strong rates of economic expansion seen in each country” along with the stimulus provided through additional airport pairs that were being offered.
India was the fastest growing domestic aviation market in the world in 2017, according to a report by global airlines’ body International Air Transport Association (IATA). The growth in India’s domestic market was “driven by economic and network expansion”.
This was the fastest full-year growth for the third consecutive year among competing countries and grew at 17.5 per cent followed by China whose domestic market grew at 13.3 per cent. India ended the year with the December growth rate recorded at 17.4 per cent.
The growth in India’s domestic aviation market in 2017 was driven by economic and network expansion, IATA said. (In picture: Indira Gandhi International Airport Terminal 3/Express photo)
On the global front, the report said, Revenue Passenger Kilometres (RPKs) grew by 7.6 per cent in 2017. RPKs, a measure of passenger volumes, recorded an “above-trend growth”, exceeding the ten-year average of 5.5 per cent.
According to IATA, the growth was driven “mainly by the comparatively strong rates of economic expansion seen in each country” along with the stimulus provided through additional airport pairs that were being offered. These new services, the IATA said, “translate into time savings for passengers and have a similar stimulatory impact on demand as cuts in airfares.”
Since the aviation market was opened in end of 2014 following several regulatory easing, India has seen a boost in passenger traffic helped significantly by low airfares offered by carriers. In 2017, broad-based pick-up in global economic conditions was also a major supporting factor. However, the airlines’ body said that full-year RPK growth was expected to be lower than the 2017 rate.
Since the opening up of India’s aviation market, low India’s passenger volumes have grown with major support from low airfares and discount battles. (Picture for representation)
“This is mainly because increases in airline input costs — notably fuel prices but also labour costs in certain countries — mean that we are unlikely to see the same degree of demand stimulation from lower airfares in 2018 than we have in recent years,” IATA said.
The IATA grouping is a body that represents around 280 airlines that command 83 global air traffic.
