Centre for Asia Pacific Aviation (CAPA) Executive Chairman Peter Harbison warned yesterday that passenger demand could slow quickly if fuel prices begin to impact upon consumer spending.
Opening the second Annual Middle East and Indian Subcontinent Aviation & Tourism Investor Summit in Mumbai, Harbison said: ?The growing oil price crisis sees the express train of demand growth coming into a lake of treacle as consumer demand slows, while fares rise. The express train is not yet stopped, but the slowing becomes unavoidable?.
He said this ?treacle effect? is the biggest short-term threat to airline profitability worldwide. Continued growth in India?s aviation sector faces potential double-jeopardy. The second obstacle to traffic growth is inadequate airport infrastructure, which is already showing signs of being unable to maintain pace with the growth in passenger demand.
?For Indian airports, there is no easy way to meet demand. The solution lies with Governments, at the Federal and State levels. They need to recognise that airport infrastructure is a crisis ? not just a policy issues. Failure to take these aviation opportunities will destroy potential for extensive regional economic development across the sub continent,? said Harbison.