25-May-2012 10:45 AM

CAPA expects India domestic capacity growth of 7-8%, traffic growth of 8-10% in FY2012/13

India domestic passenger traffic will grow (23-May-2012) by 8-10% in FY2012/13 and more likely towards the lower end of the range, according to the CAPA India Outlook 2012/13. The reported noted, "Much will depend upon the impact of oil prices and other input costs on airfares. Upside growth is limited by the fact that capacity expansion will be measured, and with load factors already quite strong there is limited opportunity to grow traffic through higher occupancies". In FY2012/13 Indian carriers are expected to add approximately 24 aircraft during the year, which includes eight Q400s to be inducted by SpiceJet. This corresponds to the equivalent of 20 narrowbody aircraft on domestic routes. CAPA estimates this which would result in capacity growth of 7-8% in a best case scenario. This projection does not take into account the possibility of exceptional events such as a scenario involving further capacity reduction by Kingfisher Airlines or where Air India’s operations are severely impacted by industrial action. [more – CAPA India Outlook Report]

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