Indian Aviation Market Grew Fastest Among Its Asia-Pacific Peers
India led the Asia-Pacific region in posting the highest growth in air passenger traffic in May at 13.3 percent, said the Airports Council International in its latest study released this month.
In comparison, growth in China stood at 8.3 percent and South Korea at 8.1 percent, said the global body representing airports worldwide.
It said the impressive growth showed by the Asian giants has led to a situation of “disparity” in the region if compared with passenger traffic growth of Japan and Australia. Japan, for example, posted a more subdued figure of 2.8 percent and Australia at 2.3 percent.
“The flourishing middle class in populous countries such as India and China have certainly helped boost traffic, especially in their respective domestic markets,” the report said.
The Asia-Pacific market as a whole posted a growth rate of 6.3 percent, slightly higher than Europe where the figure stood at 6.2 percent. North America, on the other hand, saw the traffic grow 5.6 percent.
The report said the “presence of the low-cost business model among carriers, coupled with historically low jet fuel prices”, have certainly acted as catalysts to stimulate air transport demand through lower fare offerings on certain market segments.
Oil prices have, however, shown a steady rise in the succeeding months.
According to the report, the global passenger traffic grew 5.6 percent year-over-year in May.
“While this was close to one percentage point below its year-to-date growth figure, it remains a robust demonstration of resilience considering the global climate of increasing geopolitical tension,” it said.
The Airports Council International’s month-by-month passenger and freight statistics are based on sample of airports that provide regular reports. The report comes against the backdrop of studies by other global bodies, saying that the growth of the aviation industry remained the highest worldwide last year.
According to the International Air Transport Association, India’s civil aviation market will become the world’s third-largest aviation market by 2025. The domestic carrier, put together, are expected to add about 1,100 aircraft in the Indian skies in the next 10 years. At present, they are operating about 600 aircraft.