News Link: Air Travel To Continue To Be Impacted In 2021- Predicts CAPA – By MK (Editor)
Aviation consultant Centre for Asia Pacific Aviation (CAPA) has predicted that demand recovery will remain uncertain even in 2021. Especially uncertain for international traffic. According to CAPA, international traffic is only expected to recover 35-40% of financial year 2020 levels. Domestic traffic in financial year 2021-22 is expected to reach 70-80% of financial year 2020 levels.
It stated that discretionary domestic travel segments like business, institutional, MICE, leisure and foreigners travelling on the domestic network. These are accounted for an estimated 55% of the market before the Covid-19 outbreak. It is unlikely to return until the pandemic is under greater control or deployment of a vaccine is widespread.
CAPA also said that even outbound travel will continue to be impacted by border restrictions. Poor consumer confidence until there is effective roll-out of a vaccine.
According to CAPA, there has been very limited discretionary travel demand that could be stimulated through lower fares. Though some carriers opposed pricing restrictions, CAPA expects no major push to change the regulations.
CAPA also said that aviation regulator Directorate General of Civil Aviation (DGCA). Bureau of Civil Aviation Security will need to be reinvented as professional, independent institutions, to be able to serve the aviation industry of today. Which includes generating funding directly from industry operators and consumers.
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News Link: Air Travel To Continue To Be Impacted In 2021- Predicts CAPA – By MK (Editor)
