Friday, August 17, 2012

NEWS Air traffic growth to be affected by sharp hike in fares: CMIE

A major financial think-tank has scaled down its forecast on air passenger traffic growth this year from 11 to seven per cent, citing a sharp rise in fares due to a major hike in charges by private operators of Delhi and Mumbai airports. 

"We now expect air passenger traffic to grow by seven per cent in 2012-13 as against our earlier estimate of 11 per cent," the Centre for Monitoring Indian Economy(CMIE) said in its latest report. 

A sharp rise in air fares in order to pass on the high user development fees at various airport particularly at Delhi and Mumbai was a major contributing factor that has hit passengers volumes, the Mumbai-based think-tank said. 

The total passenger volume is expected to stand at 1,737 lakh by March next year, the CMIE projected in its report. 

Observing that air passenger traffic reflected a modest 4.1 per cent growth in April-May this year after having clocked an overall 13.2 per cent growth in the previous fiscal, it said this deceleration could be attributed to the curtailment of schedules by two major airlines -- Air India and Kingfisher


SOURCE:http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-traffic-growth-to-be-affected-by-sharp-hike-in-fares-cmie/articleshow/15518850.cms
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