which was hit hard by the global
financial meltdown and high fuel cost,
saw a strong recovery in 2010 with
the domestic passenger traffic rising
19 per cent to 51.53 million, the Economic Survey said today.
In 2009, the traffic was 43.3 million.
"The civil aviation sector in India has
resumed a higher trajectory of growth
after emerging from adverse impact of
global financial crisis. The potential for higher levels of growth in the future is
also very high," said the Economic
Survey 2010-11, tabled in Parliament.
It, however, cautioned that Indian
carriers operate in an exceptionally
high-cost environment and higher prices of air turbine fuel (ATF) can
derail the growth of the sector.
"In the backdrop of higher crude oil
prices, there is a severe risk of
dampening of passenger market
growth by quickly making air travel out of reach for a significant portion of
the market, which was fuelling its
growth," the Survey said.
It also noted that widening differential
in ATF prices, which account for 40 per
cent operating costs of the Indian carriers and its huge negative impact
on airline balance sheet, are eroding
their competitiveness.
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