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Rediff.com  » Business » Air travel in India grew 8.2% in Apri-Dec

Air travel in India grew 8.2% in Apri-Dec

By Arif Sharif in New Delhi
January 30, 2003 18:06 IST
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India's domestic air travel market grew by 8.2 per cent in the first nine months of this financial year as domestic tourism rebounded and airlines cut fares to lure travellers, industry figures showed on Thursday.

Air travel in India, the world's 12th largest economy, dipped 5.9 per cent in the full previous year to March following a global downturn in tourist traffic after the September 11 attacks and a slowing world and domestic economy.

Provisional figures from the state-owned Airports Authority of India, which manages India's 128 airports, showed 21.4 million passengers filed through its terminals in April-December compared with 19.8 million in the year-ago period.

The figures include passengers embarking and disembarking at the 60-odd operating airfields including a joint sector facility at the southern coastal city of Cochin.

Airports Authority said the total number of international passengers -- embarking, disembarking and in transit -- it handled rose seven percent in April-December to 10.7 million from 10.01 million a year ago.

In the past year to March, the number of international passengers had dropped 2.7 percent over the preceding year.

"Our estimates show that domestic tourism grew by 20 per cent in 2002 and international tourist arrivals by 17 per cent," Subhash Goyal, head of the tourism committee at leading industry chamber Assocham, told Reuters.

The passenger figures suggest a sharp cut in air fares by the country's two main domestic airlines in July on their advance purchase schemes had helped revive air travel.

State-owned Indian Airlines and privately-held Jet Airways, who together control nearly 90 per cent of the domestic air travel market, slashed fares by up to 50 per cent in July for tickets bought at least 21 days before travel to stimulate demand.

Air fares in India are generally steep, due mainly to high prices of aviation fuel.

Goyal said domestic air travel could expand 15 per cent this year helped by the lower fares and foreign tourist arrivals by 20 per cent if there was no war in Iraq.

Airports Authority also said the volume of international and domestic freight moved by air rebounded sharply in the nine months to December, reinforcing a domestic industrial revival.

Its figures showed international cargo at its terminals in April-December jumped 16.3 per cent from a year ago after growing just 0.4 per cent in the past year.

Domestic air cargo vaulted 14.5 per cent in the first nine months of this year, improving from a 2.0 per cent growth in the full previous year.

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Arif Sharif in New Delhi
Source: REUTERS
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