Air India Can Witness Growth With Traffic

Aviation Industry in India, can witness a revenue growth. This is based on the statistical facutual data provided by Minister of State for Civil Aviation India. The air traffic in terms of aircraft movement and passenger traffic has increased during the last three years, however this could not leverage revenue growth as in the same tenure, aviation industry witnessed negative growth in freight.

The total aircraft movements and passengers have registered a Compound Annual Growth Rate (CAGR) of 3.3% and 5.6% respectively, whereas freight has declined by 1% during FY 2010-11 to FY 2013-14. In the current financial year (April- May, 2014) aircraft movements, passengers and freight traffic has increased by 5%, 5% and 9.9% respectively over traffic handled during (April-May) 2013-14.

Airports Authority of India (AAI) has estimated that traffic at all Indian airports, taken together in terms of aircraft movements, passenger and freight, are expected to grow at the rate of 4.2%, 5.3% and 5% respectively for the next five years.

Various Ailrlines are now targeting on cost cutting on operational expenditute to influence the bottom line.

Air India created a surplus of US $ 25.735 million after prepayment of the Aircraft advance when the national bearer sold five B777-200lr air ship. Further, a sparing of US $ 5 million for every month towards advance and premium reimbursement was likewise created, bringing about enhanced money stream. Notwithstanding, in light of the book estimation of the airplane, book misfortune marked down of these 5 flying machine would be give or take Rs. 800 crores as the airplane had deteriorated in the books over a time of 20 years while the credits were amortized over a time of 12 years.

Air India has sold five B777-200lr for a thought of US $ 336.5 million to Etihad Airways by taking after the due methodology and with the support of the Competent Authority. The operation of these airplane had prompted gigantic misfortunes throughout the years, further irritating the intense monetary position of Air India and the flying machine were discovered to be uneconomical, essential because of high fuel cost and low yields because of rivalry.

Keyword : Air India Stocks, Aviation Industry Growth,Air India Stock Price Rise, aviation Industry In India, traffic growth aviation industries in India