After nearly three years of uninterrupted domestic passenger growth, severe cutbacks by Kingfisher and increased fares have been pulling the number of passengers down since May.
The story of exceptional growth in the Indian domestic market took a diversion for a third consecutive month in Jul-2012, with an 9.9% year-on-year decline to 4.53 million passengers. Year-on-year reductions in passenger numbers commenced in May-2012, with a 0.9% year-on-year reduction in passenger numbers to 5.4 million, while Jun-2012 witnessed a larger 3.8% year-on-year decline to 5.10 million passengers.
India was the only major domestic market worldwide that failed to show an expansion in demand (RPKs) in Jun-2012 compared with the previous year. This was preceded by almost three years – or 35 consecutive months – of uninterrupted growth, most of it at double-digit rates (all but six of these months witnessed double-digit growth). Up until Feb-2012, India’s growth rate was among the highest in the world with double-digit increases in passenger carriage, supported by strong domestic demand and economic growth.
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