'2017 air fares fell 18%, passenger CAGR up 19% in 2018'

New Delhi, June 3 (IANS) Average air fares in India fell 18 per cent in 2017, while the number of passengers flown by domestic carriers recorded a compounded annual growth rate (CAGR) of 19 per cent in the last fiscal over the financial year 2013-14, Civil Aviation Minister Suresh Prabhu said on Sunday.

He said that his ministry is working on a plan for the domestic production of aircraft under the Make in India initiative.

"Average air fares fell by 18 per cent in 2017 over average air fare in 2015, making air travel more affordable for everyone," Prabhu tweeted.

"Indian scheduled airlines carried more than 12 crore domestic passengers during FY18 as against 6.1 crore in FY14, recording growth of 19 per cent CAGR. Strategic policies resulting in enabling more Indians to fly than ever before," he said in a separate tweet.

"Comprehensive aviation capacity expansion programme NABH NIRMAN has been envisaged to cater to one billion air passengers over the next decade," he added. 

The NextGen Airports for Bharat (NABH) Nirman initiative announced in Budget 2018-19 aims to expand airport capacity by more than five times.

"UDAN envisions enhancing regional connectivity through a market based mechanism. Passenger fares capped at Rs 2,500 for an hour-long flight to enhance affordability and connectivity. #UDAN enabling "Aam Nagrik" to fly," Prabhu said in another tweet. 

"India's booming aviation and economy needs >1000 passenger and many more cargo planes. Preparing roadmap under #makeinIndia to eventually manufacture Aircrafts, beginning with components, creating eco-system, part of global supply chain. Create jobs, SMEs. Appeal @Airbus @Boeing participate," he added.

Following his Friday visit to the Airbus facility at Toulouse in France, Prabhu asked the aircraft major to build planes in India under the Make in India initiative and contribute to the country's aviation sector development.