Confirming the airline industry's estimates of a slowdown in the aviation sector, domestic passenger traffic for the calendar year 2008 showed a decline of 5 per cent compared to the previous year.

Also, the Kingfisher-Kingfisher Red combine ousted Jet-JetLite as the largest Indian carrier combine in the month of December 2008.

According to figures released by the Ministry of Civil Aviation today, total air traffic carried in 2008 stood at 40.8 million, compared with 42.9 million in the previous year.

The slowdown happened in the second half of 2008 when air traffic fell by 16.20 per cent compared to the same period a year ago, while it increased by around 8 per cent in the initial six months.

The steepest fall came in the fourth quarter (Oct-Dec) when air traffic fell by 17.39 per cent. Aviation turbine fuel (ATF) prices increased by around 56 per cent from January to August along with a consequent rise in airfares.

However, the prices saw a decrease of around 54 per cent from August to January which was not accompanied with a similar cut in airfares.

While average yearly marketshare figures for most of the carriers remained constant in 2008 compared to 2007, Kingfisher Red (previously Air Deccan) saw its share dip from 17.1 per cent to 12.2 per cent in 2008, while Delhi-based low-cost carrier IndiGo gained control of 11.6 per cent of the market compared with 7.6 per cent the previous year.

Domestic air traffic for December 2008 fell by 17.17 per cent compared to the year-ago month even as the Kingfisher-Kingfisher Red combine emerged as the largest carrier in the Indian skies for the month as full service carrier Jet Airways' [Get Quote] share of the market came down from 19 per cent to 16.7 per cent.

National carrier Air India's share decreased from 18 per cent to 16.8 per cent. Full service carriers lost some market to low-cost carriers primarily since as the latter introduced fresh capacity into the market.

Barring Paramount, which accounts for a minuscule part of the market, IndiGo had the highest loads of 75.5 per cent. The industry average loads for the month stood at around 69 per cent.