The DGCA air traffic data for the month of April-May 2016 indicates growth in both the months of more than 20% native passengers. IndiGo’s data shows 23% ASK (Available Seat Kilometres) build Y-Y in Q1FY17 by proper maintenance of PLFs (Passenger Load Factor) and OTP (On Time Performance). On their part, Spicejet and Jet Airways have figured out how to improve their capacities. As the measures to expand capacity is reduced, capacity upgrade will be driven by lessor arrangements that will inspect the cost structures for Spicejet/Jet.
Our domestic supply-demand model indicates a yearly growth rate of just 14% between FY17 and 20E on the basis of current order book but airplane supply based on current order book will lag demand.
IndiGo shows an expansion of 23% ASK in Q1FY17 and 34% in FY17. The ASK increment between March and May 2016 is 8%, which is completely determined by Neos (airline). The ASK increment for IndiGo in domestic routes is 25% whereas it is 6.5% in the international routes. Eventually, the international ASK share for IndiGo has reduced from 11% to 9% between Mar-Apr 2015 and Mar-Apr 2016. On Time Performance (OTP) of IndiGo remains the best among big airlines. PLF expanded to 87.2% in May 2016. The market share of IndiGo is 39% as per the May data, while based on ASK it is comparatively higher in the domestic sector i.e., 41%.
27/06/16 Dipa Biswas/Financial Express
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Our domestic supply-demand model indicates a yearly growth rate of just 14% between FY17 and 20E on the basis of current order book but airplane supply based on current order book will lag demand.
IndiGo shows an expansion of 23% ASK in Q1FY17 and 34% in FY17. The ASK increment between March and May 2016 is 8%, which is completely determined by Neos (airline). The ASK increment for IndiGo in domestic routes is 25% whereas it is 6.5% in the international routes. Eventually, the international ASK share for IndiGo has reduced from 11% to 9% between Mar-Apr 2015 and Mar-Apr 2016. On Time Performance (OTP) of IndiGo remains the best among big airlines. PLF expanded to 87.2% in May 2016. The market share of IndiGo is 39% as per the May data, while based on ASK it is comparatively higher in the domestic sector i.e., 41%.
27/06/16 Dipa Biswas/Financial Express
