The Hindu Business Line : Festive season fuels business, personal travel

Flights in and out of India are full driven mainly by corporate travel and those visiting friends and relatives, according to airline sources. Incentive travel is also on the rise, sources said.

The period over Diwali is always traditionally busy, as it is not only the peak time for leisure traffic but also a busy time for business traffic, Mr Rupert Bray, Country Manager, Cathay Pacific, said.

He said this year the demand for business travel has been particularly strong, as Diwali has coincided with buyer fairs in Hong Kong and in China.

The combination of Diwali and Ramzan has seen a greater demand than normal for family travel.

Ms Kamal Sen Gupta, General Manager, Commercial, Air France, said Air France was doing well out of Bangalore and Mumbai.

The airline plans to start operating three flights a week out of Chennai by the end of this month. Other airlines such as China Airlines and Air Mauritius plan to increase flights to India.

Air India Express will start operations on the Chennai-Singapore and the Chennai-Dubai sectors from October 29.

Airline sources said that traffic volumes on most European carriers such as Air France, Lufthansa and British Airways out of Delhi have been impacted because of the North American carriers Continental and American as they offer direct connection to the US.

This has affected the visiting friends and relatives segments, as old people do not like to change aircraft or transit through a hub, according to airline sources.

Mr Bray said the arrival of additional capacity inevitably has an impact on the market.

He pointed out that with the entry of every new carrier the Indian aviation marketplace is becoming more competitive.

This benefits the travelling public with better connections and cheaper fares.

US - most popular destination

Mr Bray said at the same time, it has been proven time and again that an increase in capacity also helps to stimulate demand.

The US remains the most popular destination for Indians, and it is a route on which demand continues to grow strongly.

Chinese market

He said that of all the markets that Cathay Pacific serves, China is the fastest growing.

"As Indian companies continue to expand their presence in China, and Chinese companies continue to win contracts in India, we foresee the demand growing rapidly," Mr Bray said.

In addition, China is now a hot leisure destination for the Indian traveller, he said.