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India is the fastest growing domestic air travel market but is five times smaller than China and nine times smaller than the United States, in terms of market size, according to an International Air Transport Association report.
A data from the Directorate General of Civil Aviation (DGCA) states domestic airlines in India flew 81 million passengers in 2015, registering a 20 per cent growth from 2014. The growth was driven by low fares and average domestic fares which were 15-20 per cent lower in 2015 on a year-on-year basis.
Meanwhile, domestic airlines in China and the United States flew 394 mn and 708 mn passengers in 2015 with a growth rate of 9.7 per cent and 5.4 percent respectively.
“With annual growth of 18.8 per cent (in a market of 80 mn domestic passengers), India’s performance in terms of growth surpassed that of Russia (11.9 per cent growth, in a market of 47 mn domestic passengers), China (9.7 per cent growth, in a market of 394 mn domestic passengers) and the United States (5.4 per cent growth, in a market of 708 mn domestic passengers),” IATA said.
According to DGCA data, domestic airlines flew 39.6 mn passengers between January-May this year, registering a year-on-year growth of 22.87 per cent. Aviation consultancy Centre for Asia Pacific Aviation (CAPA) estimates domestic traffic in India to cross 100 mn in FY17. “We expect close to 20 per cent year-on-year growth in the domestic market and the growth could exceed even further,” Kapil Kaul, CAPA’s chief executive (South Asia) had said in February.
A data from the Directorate General of Civil Aviation (DGCA) states domestic airlines in India flew 81 million passengers in 2015, registering a 20 per cent growth from 2014. The growth was driven by low fares and average domestic fares which were 15-20 per cent lower in 2015 on a year-on-year basis.
Meanwhile, domestic airlines in China and the United States flew 394 mn and 708 mn passengers in 2015 with a growth rate of 9.7 per cent and 5.4 percent respectively.
“With annual growth of 18.8 per cent (in a market of 80 mn domestic passengers), India’s performance in terms of growth surpassed that of Russia (11.9 per cent growth, in a market of 47 mn domestic passengers), China (9.7 per cent growth, in a market of 394 mn domestic passengers) and the United States (5.4 per cent growth, in a market of 708 mn domestic passengers),” IATA said.
According to DGCA data, domestic airlines flew 39.6 mn passengers between January-May this year, registering a year-on-year growth of 22.87 per cent. Aviation consultancy Centre for Asia Pacific Aviation (CAPA) estimates domestic traffic in India to cross 100 mn in FY17. “We expect close to 20 per cent year-on-year growth in the domestic market and the growth could exceed even further,” Kapil Kaul, CAPA’s chief executive (South Asia) had said in February.
“On a per capita basis number of air trips made by Indians is minuscule. I do not expect India to overtake China in the near future. We would see double digit air traffic growth as long as fuel prices and fares remain low. The growth will taper once fuel and fares move up,” said aviation expert Hormuz Mama.
