2020 has been an extremely difficult year for the industry with plummeting passenger volumes and unprecedented losses. We are steadily moving towards recovery, but a definitive prediction of the exact shape of revival of air traffic seems difficult. Therefore, it is better to extend the time horizon a little and discuss the longer-term outlook for Indian aviation.<\/p>\n
India has an extraordinary story – a high growth economy coupled with low air travel penetration. India\u2019s GDP is forecast to grow anywhere between 6 and 8 percent, a major chunk of which is expected to come from India\u2019s middle class. Despite this, India remains one of the least penetrated markets for airline travel with only 5 percent of citizens acquainted with air travel. India\u2019s diverse geography, internal migration, and strong family ties, coupled with growth in income, will drive a sharp growth in air travel in years to come.<\/p>\n
The aviation environment in India has been tough for years, with one of the highest cost structures in the world, owing to high taxes and a steady erosion in the rupee dollar exchange rate. This has resulted in continuous upward pressure on fuel, maintenance, and leasing costs. <\/p>\n","protected":false},"excerpt":{"rendered":"
2020 has been an extremely difficult year for the industry with plummeting passenger volumes and unprecedented losses. We are steadily moving towards recovery, but a definitive prediction of the exact shape of revival of air traffic seems difficult. Therefore, it is better to extend the time horizon a little and discuss the longer-term outlook for Indian aviation. India has an extraordinary story – a high growth economy coupled with low air travel penetration. India\u2019s GDP is forecast to grow anywhere between 6 and 8 percent, a major chunk of which is expected to come from India\u2019s middle class. Despite this, […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[188,139,130],"tags":[],"class_list":["post-401267","post","type-post","status-publish","format-standard","hentry","category-civil-aviation-live-mint","category-live-mint","category-newspapers"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/401267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=401267"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/401267\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=401267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=401267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=401267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}