Thursday, October 25, 2018

Mayday! Air India’s market share crashes to lowest ever

Air India’s market share plunged to an all-time low of 11.8% in September even as the government-owned carrier grapples with a financial crunch, reports Arun Nayal in New Delhi. In January 2014, the carrier commanded a share of 19.8%. Although the domestic passenger market is growing at robust pace, the near-bankrupt Air India has slipped to the number four position behind low-cost carrier Spicejet, which repo-rted a 12% market share.

Interglobe Aviation, which flies under the brand name IndiGo, captured 43.2% of the domestic pie while Jet Airways reported a share of 15.8%. Air India’s domestic market share had dropped to below that of Spicejet in September 2017, or exactly a year ago; at the time its share was 13.5% passengers compared with Spicejet’s 13.8%.

Air India has a fleet size of 163 aircraft; this compares with 57 aircraft for low-cost carrier Spicejet and 69 aircraft for IndiGo. Though Air India’s market share has been on a continuous decline since 2014, the situation has been aggravated in 2018-19. The government had made an attempt to divest 76% stake in the Maharaja but the effort did not result in any transaction. During the same period Indigo has expanded from 28% to 43% market share.
25/10/18 Financial Express
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