CAPA India International Outlook 2012/13: Some surprises ahead, Jet could join Star, A380 may debut

While the Indian aviation sector has been through various ups and downs since the introduction of major reforms in 2003/04, international traffic has been the steady performer, growing at a compound annual rate of 11.8% over the last eight years. Even during the economic downturn in 2008/09, when domestic traffic registered a double-digit decline, international traffic remained in positive territory, growing at 6%.

As outlined in the first part of our India outlook series last week, FY2012/13 will be a challenging and uncertain year for India's aviation sector overall.

However, in India's international operations, which are expected to see steady growth, CAPA foresees a number of developments which could surprise and re-define the sector. Alliance relationships may be an important part of that re-definition.