GST, demonetisation may hit aviation sector

The GST which is expected to be rolled out in 2017 and the on-going demonetisation drive could impact the growth prospects of the domestic aviation industry in the next fiscal, the Centre for Asia Pacific Aviation (CAPA) has warned.

´The government´s demonetisation move could impact the growth of the domestic civil aviation market by as much as 3-5 per cent in 2017 though the next fiscal is expected to be the third consecutive year of domestic growth above 20 per cent,´ CAPA Aviation Outlook for Fiscal 2018 says.

The report states that the effect of the government´s demonetisation move ´were still unclear although there is no visible impact as yet.´