As Oil Prices Increase Airline Expansion Plans Decrease

The increasing oil prices are forcing airlines to cut back fleet expansion plans, rationalize routes and increase air fares. With growth in passenger traffic slowing (still an impressive double digits) the government and AAI are getting a bit worried as they plan to invest Rs 45,000 crores to upgrade, expand and add new airports throughout the country. This is especially true when airports are complaining about airlines not paying their airport dues on time, a worrying trend indeed.