IndiGo Market Share Grows To 32pc
Friday, 23rd May 2014 at 07:13am
India's low-cost carrier, IndiGo, didn't relinquish its top position it held the previous year as the country's current largest airline in terms of market share, with a comfortable advantage of 10% over its closest rival.
The budget airline expanded its client base, capturing close to 32% of the domestic market during the last fiscal year. Based on the latest data from the Directorate General of Civil Aviation (DGCA), the Gurgaon-based carrier was leading by 10% over the second-placer, Jet Airways, which was able to corner 22% of the market.
IndiGo was founded in 2006 and commenced operations in the same year.
Based on the recent data furnished from DGCA, only IndiGo and Go Air grew their market share during the latest fiscal year ending April 2014 over the previous period. State-owned Air India's market share declined to 18.3% from the previous year's 19%, while SpiceJet's share down to 17.9% from 20%.
A new carrier, Air Costa, managed to capture 0.8% of the market during the last fiscal year. In April, the peak month for travel in the country, it registered the highest seat occupancy among airlines at 77.8%. The occupancy rates for the rest of the airlines are as follows: IndiGo, 77%; GoAir, 76%; JetLite, 76%; Air India and SpiceJet, both with 73.3%; Jet Airways, 71%.
Overall, India's travel market expanded slightly in April by 4.75% to 5.30 million passengers from 5.07 million during the same period last year.
IndiGo currently has 78 aircraft in its fleet and serving a network of 32 domestic and 4 international destinations. These 4 overseas destinations include Bangkok, Dubai, Singapore, and Muscat. It operates close to 500 daily flights, a big bulk of these across its domestic network.
Experts suggest that IndiGo is more likely to expand its domestic market in the next few years than its rivals who are actually either downsizing or holding their expansion plans.
Most of these airlines are burdened by the weak currency at home, surging operational costs, skyrocketing fuel cost, and low travel demand. SpiceJet, for instance, recently reported a net loss of Rs1,000 crore during the last fiscal year.
Industry analysts said that except for IndiGo and to a lesser extent, GoAir, most Indian airlines need to take drastic measures and one of which would be to restructure their domestic operations if they want to stay in the competition as new airlines are coming their way.
IndiGo will have one more rival to contend with"in the face of AirAsia India"which will take off on June 12.
By: Pete Lee.