Domestic air traffic to cross 100 million in FY17: CAPA

With 20% growth in domestic traffic at 81 million for 2015, the aviation consultancy there is scope for more growth

Aviation consultancy CAPA estimates domestic air traffic to touch 100 million by the end of FY2017.

“We expect close to 20 per cent  year-on-year growth in domestic market and  growth could exceed even further,” said Kapil Kaul, CAPA’s chief executive (South Asia) in Mumbai on Wednesday.

In 2015, domestic airlines flew over 81 million passengers, registering over 20 per cent growth in comparison to 67 mn passengers in 2014. Growth was driven by low fares and average domestic fares were 15-20 per cent lower in 2015. International traffic growth is estimated at 10 per cent and could cross 12-14 per cent in the event of abolition of 5/20 norms.

Kaul estimates domestic airlines to add 50-60 planes in FY17 and the capacity addition could put pricing pressures on airlines. IndiGo and GoAir are expected to add 30 planes but the capacity addition will depend upon the delay in delivery of Airbus A320neo aircraft.