Global oil prices are affecting the growth level of various sectors. But The Indian domestic aviation sector will not be affected despite rise in global oil prices. This is established by a report of research firm KPMG. The report 'Indian aviation: Flying through turbulence' was released on Thursday.

Airlines in the country can make profits if they focus on improving efficiencies, processes and cost factors of their business operations. KPMG said that the increasing price of aviation turbine fuel would hurt the industry but it not a reason an airline to close down. The report further revealed that domestic air travel will be adversely influenced by epidemic outbreaks, economic recession, terrorism, shift in policy, regulations and competitive market but the rise in oil prices would not hurt the growth of domestic aviation sector.

The buying power of the Indian middle class will remain intact as par their income level rise. The economy and gross domestic product are measured by purchasing power parity of people and not by per capita income of individuals as per report by KPMG.

The report suggested several changes and amendments to improve airline efficiency. These changes includes selection of shorter distances between the terminal, augmentation of additional aerobridges and the aircraft parking bays so as to lower transportation time. The airlines are also suggested to set up an "early warning mechanism" to forewarn them of low yields routes and identification of potentially high traffic routes.

In nutshell, the report feels that the domestic aviation industry can achieve huge losses and even become profitable, despite rising fuel prices, by adopting new cost effective methods and business operations.