Monday, September 28, 2015

Newbies sending old airlines into a spin

The newbies are clearly hotting up the war for Indian skies. Fresh entrants like Vistara, Air Asia India, Air Costa, Air Pegasus and True Jet seem all set to challenge the monopoly of incumbent carriers who have long dominated the domestic air space.

As per data released by aviation regulator DGCA, these carriers have in the first eight months of the year increased their market share from 2.5 per cent to 4.9 per cent on the back of improved operating environment.

Besides adding to the spurt in air traffic growth, the new entrants have put downward pressure on yield or average passenger fare charged by airlines. Going forward, the carriers are set to turn the heat on older rivals by adding capacity.

While Vistara will increase its fleet to nine adding two more A320s by year-end, Air Asia India will induct one A320 next month. Air Costa is planning to replace its 67-seater E170 Embraer aircraft with 112-seater E190.
27/09/15 Nirbhay Kumar/mydigitalfc.com
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