Growth in airline tickets, petrol in November 2016 expected

To defend demonetization, a senior minister claimed that there was a large increase in airline tickets and petrol sales in November 2016 as a sign that it was economy beneficial. However he forgot to honestly admit the fact that airlines and petrol pumps were among the few sectors in India, which accepted the demonetized Rs 500 and Rs 1000 notes , so those interested in getting rid of their old Rs 500 and Rs 1000 notes purchased a large number of plane tickets, purchased petrol, which may not have done otherwise.
For example one airline was advertising on television and print that it was accepting Rs 500 and Rs 1000 notes in the sale that it was holding, to encourage people to travel by air. Any sector, which officially allowed people to spend their old Rs 500 and Rs 1000 notes would have noticed an increase in sales in November and may be December 2016 as some people did not want to deposit the money in the bank, and then waste time, withdrawing the money. Accepting Rs 500 and Rs 1000 notes was the most popular marketing strategy in November 2016.
It would be interesting to find out if that increase would continue in december 2016, when Rs 500 and Rs 1000 notes were no longer acceptable for petrol, airline tickets. Only time and numbers will tell.


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