Sunday, 8 February 2015

Air Passenger Growth by 8 percent in India in 2014

IATA has reported that the air traffic in India grew by 8 percent in the year 2014 as compared to 2013. This growth level makes it the third highest growing market of 2014 in terms of passenger growth, after China and Russia. Achievement of this level of growth has been matched by addition of capacity by 5.7 percent. The load factor or the occupancy levels at which the airplanes have been flying are 76.3 percent leading to this increase. This still leaves some space for improving the load factors of the carriers especially when some of the domestic carriers have been flying at above 80 percent of load factors. This might need some seat allocation changes by the carriers who have not been performing as well in getting more passengers on board.

China had an impressive 11 percent growth in traffic whereas the Russian market saw expansion by 9.8 percent. At a regional level, the growth in traffic has been 5.8 percent for Asia Pacific. Globally, there was an increase of 170 million more passengers as compared to the 2013 levels taking total to 3.3 billions.

In specific context of India, the market stimulation measures, especially pertaining to the lowering of air fares, taken by the carriers has also contributed to the growth of air passenger traffic. While Indigo enjoys comfortable 33 percent of the market share, it has also gone into major capacity expansion initiatives to gather more customers in its ambit.

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