AlpFly, a leading travel company which deals in bulk booking of air tickets and hotels has stated that the recent boom of the domestic aviation industry could be reasoned by FDI liberalization and decline in fuel cost. “It seems like the Indian aviation industry is capitalising on spending potential of the middle class, following a decline in fuel cost and liberalization of Foreign Direct Investment (FDI) in the country,” says a tour manager from Alpfly.
With the National Civil Aviation Policy (NCAP), implemented in June 2016, the regional air connectivity has improved greatly. The Mumbai-Delhi corridor has become one of the busiest aviation routes in the world. However, some rural networks, which are in the pipeline of the Regional Connectivity Scheme (RCS), are yet to emerge.
Civil Aviation Minister P Ashok Gajapathi Raju said, “Government’s aviation scheme ‘Ure Desh ka Aam Nagrik’ (UDAN) is focusing on improving the air-connectivity to major regions, including, the North East, Jammu & Kashmir, Uttarakhand, Himachal Pradesh, Andaman & Nicobar Islands and Lakshadweep, by establishing operational flexibility and promoting helicopter operations.”
According to a performance report published by the Ministry of Civil Aviation, based on the data submitted by various domestic airlines, India’s domestic airline industry has registered a growth of 17.18 per cent. While 56.09 million passengers air-traveled during the January-July in 2016, and the numbers rose to 65.72 million this year.
Notably, the number of air ticket bookings, for both domestic and international flights, has significantly increased in India. “Recently, there has been a boom in group tour and honeymoon booking segment,” highlights the Alpfly tour manager.
Furthermore, the customized group tours, including air and hotel packages, have become popular among all age groups, as the packages can be availed at affordable prices. More than 75 per cent of the travellers are going for package tours.
India, the third-largest domestic civil aviation market in the world, is growing to be the largest aviation market in the world by 2018, considering the plethora of opportunities and advancements in the sector. Also, the travel companies offering affordable air-packages, are thriving as the number of air travelers are increasing.