Wednesday, November 22, 2017

Aviation continues to fly high even as IndiGo & SpiceJet dominate the skies

India's domestic aviation industry is navigating well on the skies. The industry has been clocking double-digit growth for the last 39 months and the trend continued with the industry witnessing 20.6 percent (YoY) growth in October 2017, higher than 16.5 percent it clocked in September 2017. The incremental show was on account of fixing of IndiGo's and GoAir's engine issues.

With the engine problem of A320neo aircraft coming to an end, IndiGo witnessed an expansion of 130bps (MoM) in its market share in October 2017. The company had grounded 13 aircraft due to the engine issues earlier, most of which are now in the sky. This resulted in a better sequential performance on all parameters in October 2017.
IndiGo continued to manage double-digit growth in passenger traffic for the last three months and its load factor also witnessed an expansion of 210bps.

After riding high at the expense of IndiGo (engine issue), things have come to normalcy for SpiceJet in October 2017. Though it witnessed a meagre fall of 70bps (MoM) in the market share, it witnessed a significant fall in passenger growth (620bps), ASK (510bps) and RPK (370bps).
22/11/17 Nitin Agarwal/moneycontrol