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Air traffic growth slumps to 1.4% in first four months

Puja Mehra

The economic slowdown has taken its toll on air traffic too. In the first four months of the current year, the growth in air traffic has fallen to 1.4 per cent as against a growth rate of 9 per cent last year.

According to data collected by the directorate general of civil aviation (DGCA), the total domestic air traffic during January-April 2001 stood at 4.46 million passengers against 4.4 million during the corresponding period last year. The growth rate for the full year is projected at 9-10 per cent.

Sources point out that air traffic growth is closely related to economic growth. "When there is a slump in business, the axe falls first on travel spend," they said, adding that a slowdown always results in lesser number of business trips and vacations. Cost cuts also imply shifts from air travel to alternative modes, they said.

The sharp drop in the growth rate figures for domestic air traffic is likely to hit the airline operators severely. The slack is also likely to result in the ministry of civil aviation putting a complete stop on any new domestic private airlines getting permission to operate in India. The DGCA figures have put the average growth figure for the last 10 years at 6 per cent.

The ministry had earlier said that a decision on the long pending applications for no objection certificates from a number of potential airline operators would only be taken after a committee comprising the DGCA and ministry officials study the issue.

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