Saturday, August 19, 2017

Indigo stays No 1 in India, but Spicejet makes big moves in July

Indigo Airlines continued to dominate the domestic market in terms of passenger flown in July but its market share reduced by almost 200 basis points to 38.7% from 40.8% in June. Another low cost carrier SpiceJet on the other hand increased its market share to 14.2% from 12.9% in the preceding month. Air India’s market share during the month remained flat at 13.5% m-o-m. The same was the case with Jet Airways where market share remained flat at 15.12%. The market share of the two new airlines partly owned by Tata Sons – Air Asia and Vistara – also stayed flat at 3.6%. In terms of passenger load factor – one of the metrics to judge the profitability of an airline – SpiceJet continues to lead the chart with 94.4% which is the same as June. While the same for Indigo declined to 83.7% from 87.8% in June. Air India continue to lag behind competitors and reported 75.5% occupancy of aircraft compared to 77% in June. The same for Jet Airways also decreased by one percentage point to 80.2% during the month. “This is the 28th month-in-a-row that SpiceJet has flown with load factors in excess of 90%, a feat unparalleled in global aviation history, which firmly establishes our standing as the country’s favourite airline. We take pride in serving our passengers and will ensure that we continue to serve them even better,” said Shilpa Bhatia, senior vice-president, commercial, SpiceJet.
The load factor for AirAsia also declined marginally at 88.4% from 89.6% in June while the same from Vistara declined to 84.6% compared to 86.4% in June. In terms of the total passengers carried Indigo continues to be ahead of competitors but total passengers flown declined to 36.99 lakh passengers in July from 38.26 lakh passengers in the month before. Jet Airways carried 15.2 lakh passengers and SpiceJet increased its passenger carried to 13.5 lakh from 12.7 lakh in the month before. The number of passengers carried by Air India during the month increased to 12.9 lakh from 12.4 lakh in June. Air Asia and Vistara also flown 3.4 lakh passengers each during the same period.
Total passenger carried in July increased by 17.17% y-o-y to 657.21 lakh passengers. Pertaining to On Time Performance (OTP), Indigo continues to lead its competitors by landing 84.6% flights on time in July compared to 86.1% in June. GoAir came distant second by improving its OTP to 78% compared to 75.9% in June. The same for Vistara declined to 74.5% compared to 80.8% in June. SpiceJet’s OTP also fell substantially to 73.4% during the month from 79.8%. Two full service carriers had the lowest OTP during the month as Air India’s OTP decreased to 65% from 69% while the same for Jet Airways decreased to 64.2% from 70.4% in June.
19/08/17 Financial Express