Domestic Air Traffic To Touch Pre-Covid Levels In 2 Months: Jyotiraditya Scindia
Daily air passenger numbers are likely to cross the pre-pandemic levels in the next two months, civil aviation minister Jyotiraditya Scindia said on Monday.
Addressing a event, the minister also urged states to reduce tax on jet fuel to boost the country's aviation sector.
During the pre-pandemic times, domestic airlines carried around four lakh passengers per day and the number began climbing up after second wave but again declined after the emergence of Omicron infections late last year.
Airlines were allowed to operate at full capacity from October 18, 2021.
"In November, December, we started hitting numbers of 3.8 to 3.9 lakh passengers per day. We were almost back to pre-Covid levels. With Omicron, number of travellers tanked we fell to 1.6 lakh per day. So we had a contraction of about 65-70 per cent," the minister said.
"All things remaining equal, in the next two months or so, you should see us crossing pre-Covid levels in terms of daily passengers... that will herald new demand, new capacity coming in, both at airports and airlines," Mr Scindia said.
Last month, domestic airlines carried 64.08 lakh passengers, a decline of 17.14 per cent compared to the year-ago period. In January last year, the traffic stood at 77.34 lakh passengers, according to data provided by Directorate General of Civil Aviation (DGCA).
The country's civil aviation sector was significantly impacted by the coronavirus pandemic and the sector's loss was around Rs 19,000 crore in the last fiscal ended March 2021.
In the wake of the pandemic, domestic commercial flights were suspended for two months starting from March 25, 2020 while commercial international flights remain suspended since March 23, 2020. Currently, overseas flights are being operated under bilateral air bubble arrangements.
Mr Scindia also urged states to reduce the value added tax (VAT) levied on air turbine fuel (ATF), which accounts for about 40 per cent of an airline's operational costs.
The minister said that 24 states and union territories have cut VAT on jet fuel.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.