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International air travel to be impacted the rest of 2021 predicts CAPA

Center for Asia Pacific Aviation (CAPA) an aviation consultant has predicted that the recovery of air travel will remain uncertain even in the year 2021, especially for international traffic. Accordingly, the CAPA predicted that the international air traffic is expected to recover just 35-40% of financial year 2020 while domestic travel is expected to recover around 70-80% of financial year 2020.

It also stated that discretionary domestic travel segments such as Business, Leisure and foreign traveling on domestic network that accounted for an estimate 55% of the market before Covid-19 outbreak.

It is unlikely to return with greater control or deployment of vaccine.

CAPA also said that even outbound travel will continue to be impacted by border restrictions and poor consumer confidence until there is effective vaccine.

The aviation authority has also said aviation regulator Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security will need to be reinvented as professional, independent institutions, to be able to serve the aviation industry of today

“The need to modernise these agencies can no longer be ignored as the entire industry will soon be market-driven. Hiving off and corporatising the air navigation services division of the Airports Authority of India (AAI), in line with global best practice, is another overdue reform that should now be pursued. The AAI requires a new long-term business model given that the largest airports will have been privatised,” said a report from CAPA

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