With an estimated 14 percent increase in air traffic, India's domestic aviation industry is poised for strong growth, reported Press Trust of India. Citing a report by ICICI Securities, the report added that the growth is particularly driven by a positive outlook for crude prices.
On the flip side, it noted that the growth wasn't sufficient given that in the past 16 years passenger traffic has surged between 18-20 percent a year on an average.
"Our supply-demand model for domestic air traffic implies 14 percent growth in passengers as evidenced from firm aircraft orders and latest delivery schedules," it said.
However, air fare corrections due to a dip in crude prices is not a factor contributing to increase in traffic, as the current prices are already 15 percent lower in 2015-16. Further, air fares are expected to stabilise as oil prices also settle going ahead.
16/06/16 Harish Revanna/IBTimes
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On the flip side, it noted that the growth wasn't sufficient given that in the past 16 years passenger traffic has surged between 18-20 percent a year on an average.
"Our supply-demand model for domestic air traffic implies 14 percent growth in passengers as evidenced from firm aircraft orders and latest delivery schedules," it said.
However, air fare corrections due to a dip in crude prices is not a factor contributing to increase in traffic, as the current prices are already 15 percent lower in 2015-16. Further, air fares are expected to stabilise as oil prices also settle going ahead.
16/06/16 Harish Revanna/IBTimes
