Low fares are driving domestic air traffic growth but average revenue
per passenger earned by airlines has declined from last year because a
20-25% drop in fares.
Overall volumes are up over 20% in January-April and growth has been reported in all categories - domestic leisure, corporate, small and medium enterprises and meeting-incentive segments. Air travel growth has been largely by domestic business as foreign tourist arrivals in India in January-April was up by just 2.7%.
"Travel demand has been on the rise definitely because of low fares but eventually the fares will have to catch up with the correction in crude prices. It may not happen now but in 1-2 months," said an aviation expert.
Read news in full 01/06/15 Aneesh Phadnis/Business Standard
Overall volumes are up over 20% in January-April and growth has been reported in all categories - domestic leisure, corporate, small and medium enterprises and meeting-incentive segments. Air travel growth has been largely by domestic business as foreign tourist arrivals in India in January-April was up by just 2.7%.
"Travel demand has been on the rise definitely because of low fares but eventually the fares will have to catch up with the correction in crude prices. It may not happen now but in 1-2 months," said an aviation expert.
Read news in full 01/06/15 Aneesh Phadnis/Business Standard
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