World passenger volume rises, but India's keeps falling, down 9.93pc

INDIA's civil aviation sector is the worst performing in the world according to an India Asian News Service (IANS) report which said that domestic air passenger traffic fell 9.93 per cent for the third straight month in July.

Meanwhile international passenger demand in July increased by 3.5 per cent year on year world wide and load factors remained healthy at 83.3 per cent, said the report.

"After expanding at 20 per cent plus rates through 2010 and early 2011, the Indian market stopped growing at the end of 2011," said the report, citing a release from the International Air Transport Association (IATA).

"The uncertain economic outlook is having a negative impact on demand for air transport," said IATA director general Tony Tyler, former CEO of Hong Kong's Cathay Pacific Airways.

The demand-supply gap also widened in the month under review as 2.1 per cent more capacity was added which reduced the average load factors of the domestic carriers to 69.6 per cent from 71.8 per cent in the corresponding period of last year.

According to India's aviation regulator, the domestic air passenger traffic fell 9.93 per cent for the third straight month in July to 4.53 million year on year.

The passenger traffic on the month-to-month basis fell 11.17 per cent in July at 4.53 million from 5.10 million year on year.