Aviation scope in 2004 and 2009

In 2004 when low cost carriers started in India which gave happiness to the domestic customers of Indian airline industry. The domestic air passengers had grown up at an amazing speed. The domestic air traffic reached the growth of 30-40%. All things were going in right path.

The customers were happy as they were getting cheap airline tickets as compared to what they were spending before that.
The owners of airlines were happy as they were receiving more air traffic which helped them to increase their profit. The traveling agents were also happy as they were getting more commissions as the number of domestic air passengers have increased.


But in 2009 the world wide economic slowdown changed the whole scene. The number of passengers has decreased. The growth of air passengers became negative. The decrement in number of air passengers affected the Indian airline industry in many respects. The various airlines have decreased their fleet size by almost 30%. The numbers of services to various domestic as well as international destinations have withdrawn. As the number of passengers have been declined and the price of air fuel increased which resulted in the price hike of airline tickets.


The overall revenue decreased which disturbed all economic equations of airline industry. The decrement in the revenue resulted in the halt of development of airports. The people had to suffer by paying the development fee with the price of airline tickets. The various airlines are facing hardest time so far and asking the government to reduce the taxes to survive in this globally economic slowdown.


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