Fuel Tax Rejig, Infra Required To Spur Air Traffic Growth

air passenger traffic

The downtrend in air passenger traffic might continue unless the new government takes steps to reduce air fares via rationalisation of jet fuel taxes and infrastructure creation to spur capacity at major airports.

Industry experts warn that unless these crucial steps are implemented, the sector would continue to see a slide in passenger traffic numbers.

Lately, high fares caused by capacity constraint and slowdown in economic activity has subdued passenger traffic.

The growth rate of the high frequency indicator is usually 1.3-1.4 times the gross domestic product (GDP) growth of the country. Read more

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