Reform could raise int’l traffic to 100 mn by FY21
Lifting of the restriction would permit carriers such as AirAsia India, GoAir, Tata- SIA and other prospective start- ups to operate overseas. CAPA had recently projected that India’s international traffic could reach 96 million by FY23 based on the current regulatory framework. However the lifting of the 5/ 20 rule would result in an acceleration of growth, particularly over the next 2-3 years, and traffic could even cross the 100 million mark by FY21. Regional international markets would see the most rapid growth: LCCs are expected to be the key drivers of international growth, especially if the 5/20 rule is lifted. This will result in particularly strong capacity expansion on routes to the Gulf, and South and Southeast Asia.