Tuesday, November 20, 2007
Market Share Of Airlines
NEW DELHI: Budget carriers such as IndiGo and SpiceJet have given full service carriers — Air India (domestic services earlier provided under the name Indian) and Jet Airways — reasons to worry. The airline biggies’ domestic market share continued to decline in October 2007 dropping to 17.6% for Air India and 21.5% for Jet against 19.2% and 22.2%, respectively, in the previous month. According to the data compiled by the directorate general of civil aviation (DGCA), another full service carrier Kingfisher Airlines managed to maintain its growth momentum and recorded a market share of 12.7% in October against 11.8% in September. During January-October 2007 period, Air India and Jet registered a sharp decline in their market share to 19.8% and 22.7%, respectively. In the same period last year, Indian and Jet Airways’ market share stood at 22.2% and 32.3%, respectively. Industry watchers attribute Air India’s falling market share to low utilisation level of its fleet. Interestingly, the country’s largest low-cost carrier Simplify Deccan (formerly Air Deccan) continued to see its share going southward. The Bangalore-based airline‘s market share stood at 15.7% in October, down 1.6% compared to the previous month. Seat factor of the airline, however, improved during this period. Against a seat factor of 70.7% in September, the same stood at 74.2% in October. “We have not seen the figures as yet and hence would not be able to specify any reason for drop in the market share,” Simplify Deccan marketing head Nalin Gagrani said. Other budget carriers such as SpiceJet, IndiGo, GoAir and Paramount Airways, though, rode on the unexpected growth in the domestic civil aviation sector. While SpiceJet’s market share went up to 9.9% during this period, IndiGo saw its share jumping to 9.6% from 8.9% in September. The civil aviation sector grew by 35.54% during January-October. Domestic airlines carried a total of 353.68 lakh passengers compared to 260.93 lakh in the corresponding period last year.