Rising air passenger traffic lucrative for aviation sector
Air passenger traffic in the country grew by a whopping 56.9 per cent in 2016-17, compared to 2013-14, Deputy Civil Aviation Minister Jayant Sinha informed the parliament.
India’s domestic aviation sector has recorded 15.5 per cent growth in September. India is witnessing strong traction in recent years, supported by rising passenger demand. Further, domestic air travel traffic increased to more than 1 crore passengers in November, 2017.
The government’s UDAN scheme, which makes flying accessible for millions of Indians by encouraging airlines to fly to under-served airports, has aided the aviation industry. The scheme has led to significant rise in domestic air passenger demand, thereby making airlines business lucrative.
The Airports Authority of India (AAI) plans to increase its capital expenditure for FY18 by 25 per cent to Rs. 2,500 crore to expand the capacity at 12 airports to meet the mounting air traffic.
According to a recent report by the International Air Transport Association (IATA), India will have 48 crore flyers by 2036, which will be more than that of Japan and Germany combined.
Going ahead, increasing trend in passenger traffic and various government initiatives would augur well for the Indian aviation industry in coming years.
Below table illustrates the financial performance for last four years:
