Kingfisher, low-cost carriers eat into Jet’s market share

New Delhi: Jet Airways’ share dropped from 31.2% in 2006 to 22.6% in 2007 although the acquisition of Sahara Airlines Ltd (now JetLite India Ltd) helped it retain the mantle of the largest airline group in India with a 29.9% share of the 43.3 million passengers who flew Indian skies last year. This customer base grew 32.51% in 2007 over the previous calendar year.
Jet Airways’ share was eaten into by both Kingfisher Airlines Ltd and discount carriers, an aviation expert said.The airline “finds itself sandwiched between the two,” said Subodh Gupta, an aviation analyst at NM Rothschild India Pvt. Ltd.Kingfisher Airlines saw its share increase by 3.5 percentage points in 2007 while Deccan, an airline Kingfisher owner UB Group controls, lost 1 percentage point in the same period. Together, the group reported a 29.3% share.
Air India’s share dropped to 19% from 21.5% in 2006.
Low-fare airline IndiGo added nine planes last year, helping it grow its share to 7.6% from 1.3% in 2006. It plans to add at least one aircraft every six weeks this year. Another low fare airline Go Airlines India Ltd saw its share climb to 4.2% from 2.8%, while SpiceJet Ltd’s share moved up from 6.9% to 8.8%.
15/01/08 Tarun Shukla/Livemint

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Categories: Jet Airways Jan 2008, Kingfisher Jan 2008, Low Cost General Jan 2008