India's aviation market flies high
India’s aviation sector has become the fastest-growing in Asia in terms of flight operations.
By Sunny Verma, TNN |
NEW DELHI: India’s aviation sector has become the fastest-growing in Asia in terms of flight operations. While the capacity deployed by Indian carriers’ in the international sector increased by 14%, the rise in domestic air capacity was 46% in October, according to latest statistics by global travel information company OAG.
The huge rise is mainly due to increasing low-cost flights that have been attracting substantial number of new customers. While India has made great gains, China’s capacity— both internationally and domestically — has increased at a reasonable 10%.
Globally, budget carriers are attracting rapidly-growing numbers. In India and China alone, demand for low-cost travel has skyrocketed, with domestic flight operations in this segment showing a remarkable jump of 466% and 254%, respectively says the OAG report.
The increase in Indian passengers has kept pace with the rising number of flights. According to the civil aviation ministry’s latest data for April-June ’06, number of passengers carried in the domestic sector increased 48%, while the international traffic rose by 16%.
The rising number of passengers has been made possible by growing low cost carriers (LCCs) in India, whose market share is predicted to reach 70% by ’10 from 30% at present, according to a recent analysis by Centre for Asia Pacific Aviation (CAPA).
This is likely to make India the world’s leading LCC market in terms of market penetration. While LCCs like Air Deccan and SpiceJet have gained momentum, full-service carriers like Jet Airways and Indian are losing 1.5% points of share every month to LCCs. This rate is not expected to slow in the short term, given the profile of current fleet orders, says CAPA.
Worldwide, the number of budget flights on offer this month is 17% higher than October ’05. Within the Asia-Pacific region, however, the number of budget services timetabled is 70% higher, at over 50,000 – nearly 21,000 more than last year.
A total of 24 lakh flights have been offered through out the world in this month, which is the highest figure since 9/11, according to the OAG, which collates data from more than 1,000 scheduled airlines on a daily basis.
Air travel to and from the oil-rich Middle East has shown the biggest increase of 15% this year in comparison to last year, whereas, aviation growth in America remains expectedly sluggish at 2%.
The huge rise is mainly due to increasing low-cost flights that have been attracting substantial number of new customers. While India has made great gains, China’s capacity— both internationally and domestically — has increased at a reasonable 10%.
Globally, budget carriers are attracting rapidly-growing numbers. In India and China alone, demand for low-cost travel has skyrocketed, with domestic flight operations in this segment showing a remarkable jump of 466% and 254%, respectively says the OAG report.
The increase in Indian passengers has kept pace with the rising number of flights. According to the civil aviation ministry’s latest data for April-June ’06, number of passengers carried in the domestic sector increased 48%, while the international traffic rose by 16%.
The rising number of passengers has been made possible by growing low cost carriers (LCCs) in India, whose market share is predicted to reach 70% by ’10 from 30% at present, according to a recent analysis by Centre for Asia Pacific Aviation (CAPA).
This is likely to make India the world’s leading LCC market in terms of market penetration. While LCCs like Air Deccan and SpiceJet have gained momentum, full-service carriers like Jet Airways and Indian are losing 1.5% points of share every month to LCCs. This rate is not expected to slow in the short term, given the profile of current fleet orders, says CAPA.
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Worldwide, the number of budget flights on offer this month is 17% higher than October ’05. Within the Asia-Pacific region, however, the number of budget services timetabled is 70% higher, at over 50,000 – nearly 21,000 more than last year.
A total of 24 lakh flights have been offered through out the world in this month, which is the highest figure since 9/11, according to the OAG, which collates data from more than 1,000 scheduled airlines on a daily basis.
Air travel to and from the oil-rich Middle East has shown the biggest increase of 15% this year in comparison to last year, whereas, aviation growth in America remains expectedly sluggish at 2%.
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