On Tuesday, the rating agency said to the domestic airlines for capacity addition and keeps their yield under pressure. Anand Kulkarni, Assistant Vice President and Associate Head-ICRA said that the downward pressure on yields is expected to continue with expected FY 2018 capacity addition and the costs are not declining, keeping the cost per ASKM (CASK).
According to ICRA- At present, the Indian aviation sector has a sizeable order backlog of the new aircraft is about 1.78 times the current fleet size of the industry. They expect 17-20% growth in the industry Available Seat Kilometer (ASKs) during FY2018 which is backed by the planned fleet addition of a majority of the incumbent as well as new entrants, predominantly led by IndiGo.
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