India's domestic air passenger traffic grew by a whopping over 26 per cent in July over the same period last year, helped by low air fares and increase in capacity by the local carriers.
Domestic aviation market continues on growth trajectory in the new year with the air passenger traffic up by over 22 per cent in January even as the seat factor declined marginally during the period due to the end of tourist season.
Kaul says Indigo's initial public offer will be crucial for the aviation sector, and it could even encourage GoAir to come out with a public offer. Kaul expects Spicejet to raise capital after the Indigo IPO.