Monday, July 28, 2008

Nagpur-Mumbai air traffic down by one-third

Nagpur: According to Airport Authority of India's (AAI) latest figures, traffic on Nagpur-Mumbai sector has dropped nearly 35% since June 2008.
The number of people travelling daily between the two cities has declined from about 1000 in June to just 650 this month.
The sector had seen phenomenal growth earlier. From just two airlines (Then Indian Airlines and Jet Airways) operating flights on Mumbai-Nagpur-Mumbai sector in 2002 the number had grown to five (Air India, Jet, Kingfisher, Deccan and Indigo) by October 2008. On certain days there were as many as seven flights between two cities. Most of them having above 80% passenger load factor.
Kingfisher Airlines that had started daily morning evening flights on Nagpur-Mumbai sector cut fares to as low as Rs 2,100/-. Low-cost carriers were charging as little as Rs 1599/- during the period. This was the period when Nagpur witnessed real aviation boom.Then crude oil went through the roof taking Aviation Turbine Fuel (ATF) with it. The airlines responded by raising fares and passenger loads dropped. Kingfisher has discontinued operations to Mumbai following poor passenger response. Jet Airways has suspended its evening operations for the same reasons.
The full service airlines now charge a minimum of Rs 3,725/- for Mumbai while low cost ones ask for Rs 3,250/- and above. Air tickets, that were once competitive with AC II tier fares on trains, now exceed even AC I.
28/07/08 Sachin Dravekar/Times of India
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