The rise in fuel prices will require airlines to readjust to newer costs
In the year 2017, airline companies made lot of profit with low fuel prices and huge traffic. But things are going to be little change this year. As per the report of BT (Business Today), Fuel prices are going to rise a bit in the year 2018. Being a traveler, I have witnessed so many promotional offers with low fares in the year 2017. It was possible because companies were making profits by purchasing aviation fuel at lower rates. They were able to afford lower ticket prices because of low investment in aviation fuel. In the year 2017, airline companies managed to create huge growth in number of airline passenger. Although there were few controversies with airline companies such as Indigo but it was a good year for airline industry.
India is growing so fast in airline travel. Indian domestic airline traffic got a huge passenger growth in recent years. Every Indian domestic airline company is growing because of this. After seeing the growth in airline traffic, Indian Government also took initiative to provide better services for travelers. Indian Prime Minister Narendra Modi merged his program “Make In India” with “UDAN”. UDAN is a regional airport development and “Regional Connectivity Scheme (RCS)” of the Government of India with the goal of “Let the common citizen of the country fly“. It aimed at making air travel affordable and widespread. Also it is going to enable inclusive job growth and infrastructure development of all regions and states of India. It has basically two components. First is development and operationalization of 100 regional airports with regular scheduled flights by 2018-2019. For which initial funding of INR4500 crores was approved for the redevelopment of 50 airports in May 2017.
Year 2018 is going to be an exciting year for airline companies. Looking at the current scenario, development of airport infrastructure and fostering a healthy competitive industry landscape are the two areas that present significant opportunity for Indian aviation. The right policy frameworks and stewardship in these two areas will propel aviation as a real force for India’s economic growth and development – opening new avenues for tourism, trade and investment, and ultimately benefiting Indian consumers.