The 8-10 percent figure applies to combined traffic growth of domestic as well as international sectors.
Moneycontrol News
Ratings agency Moody's expects air traffic growth in the country to slow down to a healthy annual rate of 8 to 10 percent over the next two years, according to a report by the Mint.
The 8-10 percent figure applies to combined traffic growth of domestic as well as international sectors.
The report, however, did not elaborate on why the growth rate will be slower.
According to Moody's report, the growing demand for air travel will prompt the country's leading airports to fasten their expansion plans.
Abhishek Tyagi, Singapore-based analyst for Moody's said, “We expect air traffic growth to moderate but still remain healthy at 8 percent-10 percent annually over the next two years, compared with much lower growth in other countries in the region.”
India's aviation sector witnessed growth of 17.9 percent in 2016 and 18.3 percent in 2016-17.
Domestic air traffic is currently growing at 15 percent while international traffic growth is at 8-10 percent, as per data from the Directorate General of Civil Aviation (DGCA).
According to Moody’s report, the key reasons behind growth in passenger volume was expansion of the middle class, cheaper flight tickets and the regional connectivity scheme (UDAN).
