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Air traffic to double in five years: ASSOCHAM

Agencies

The air passenger traffic in the country is poised to double in five years with more disposable income and growing consumerism of the Indian middle class, industry body ASSOCHAM said. Passenger traffic in India is projected to double in five years and triple in nine years from now. The growth in the domestic and international cargo traffic is also estimated to reach 4.5 per cent and 12 per cent over next 10 years.

Disposable income in India has gone up by five times in past two decades and the expenditure on transportation has risen from six per cent to 14 per cent in the same period, the chamber said. The drop in fares and conversion of premium rail travellers, the addressable population for the airlines industry is likely to grow by 10 per cent year on year in the next three years.

"The increase in trade activities within the nation is also leading to the development of various mini-metros which results in demand for more routes that were hitherto unavailable for airlines to operate," ASSOCHAM president Venugopal N Dhoot said.

The Indian aviation sector has impressive growth in both passenger and cargo traffic after the arrival of several low cost carrier since 2003. The passenger traffic has maintained a growth rate of 19 per cent from fiscal 2002-06 in the domestic sector and 13.7 percent from 2002-06 in the international sector. The number of aircraft in top-tier cities has grown by 33 per cent in 2005-06 and 14 per cent in 2004-05.