Domestic air travel rises 13% in Sept

Rebounds After Falling For Three Years

New Delhi: Indians have again taken to the skies for domestic travel. After witnessing constant fall in the past three years, September 2013 saw 45.5 lakh domestic flyers — up 13.4% from last September’s figure of 40.2 lakh. This is the second consecutive month of growth after August 2013’s robust 20.4% increase over the same month last year. 
    Airlines had raised fares from September 2013 by 25-30%. But a substantial number of flyers who travelled last month had actually purchased their tickets earlier when fares were low. “The peak travel months of October-December are likely to see a moderate rise in flyers due to higher fares, but the negative growth is behind us for now,” said a senior airline official. 
    While low-cost carrier (LCC) IndiGo remained the market leader with a 30.3% share in domestic travel in September, Air India saw the highest aircraft occupancy for the second month in a row. “There is a distinct improvement in our service and people are coming back to us. Our airline now has almost all new planes and passengers feel the difference,” said an AI official. 
    Airlines, however, warn that the industry is not out of the woods yet despite the feelgood factor generated after a long time by good news like growth in domestic flyers, announcement of new airlines Tata-AirAsia and Tata-Singapore Airlines, and Jet Airways getting investment from Etihad. 
    “The bottom line is that airlines are still losing money like crazy. The massive growth in domestic passengers recorded in August and September is due to low fares, which will now reflect in extensive Q2 losses that listed airlines will declare this week. Except IndiGo, every single player is bleeding heavily. One airline may be on the verge of collapse as it is showing exactly the same symptoms of financial fatigue that Kingfisher did before it got grounded last October,” said an airline official. 
    Airlines say the government must see the recent positive developments as a sign that the Indian aviation industry has huge potential. “(The government should) Lower aviation fuel prices by slashing sales tax on it and ask private metro airports, especially Delhi, to lower their charges,” said an official.