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Indian airline outlook 2010

After the dramatic changes of the last five years, the Indian aviation industry is starting to see the emergence of a more favourable environment. India’s GDP growth slowed from over 9% in 2007/08 to 6.1% in 2008/09. However, given the contraction globally, this was a relatively a good result. The economy appears to be recovering earlier than expected, with GDP growth of 7.9% in the last quarter, ahead of expectations. The World Bank projects annual growth of 8.0% per annum from 2011 to 2014. Domestic traffic is also showing a return to growth. After 12 consecutive months of year-on-year declines in domestic traffic, July 2009 saw a return to positive territory, which has continued since then.

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