From a high of nearly 20 per cent five years ago, the market share of Naresh Goyal-promoted full service airline Jet Airways has dipped 2 per cent through 2018 and ended up below that of beleaguered Air India and budget carrier SpiceJet by the end of 2018, shows DGCA air traffic report for December 2018 released today.
The financial headwinds that hit Jet Airways were not visible in January 2018 when the airline logged a market share of 14.3 per cent compared to Air India’s 13.3 and SpiceJet’s 12.6. The airline reported its first net loss of Rs 1036 crore in the January-March quarter. The loss further widened in the April to June quarter to Rs 1326 crore due to 36 per cent rise in fuel prices and a simultaneously depreciating rupee. The quarterly losses also tumbled its share price at the Bombay Stock Exchange.
In August 2018, Jet Airways announced a turnaround plan to reduce maintenance costs, optimise fuel
consumption, and cut its debt and interest costs. The company indicated that it would go ahead as scheduled with the induction of more fuel efficient Boeing 737 aircraft in its fleet.
In September 2018, Jet’s market share stood at 14.2 per cent, but it continued sliding further even as rival IndiGo continued aggressively building its market share from 39.7 per cent in January 2018 to 43.2 per cent By December. By December 2018, Jet’s market share had plunged to 12.2 per cent, and Air India’s had eroded to 12.4 while SpiceJet managed to retain its share at 12.3 per cent.
Go Air’s closed 2018 with 8.8 per cent, losing nearly a per cent from a high of 9.6 per cent. Air Asia and Vistara improved its share from 4.3 per cent and 3.6 per cent in January to 5.3 per cent and 3.8 per cent.
21/02/19 Satish Nandgaonkar/Mumbai Mirror
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The financial headwinds that hit Jet Airways were not visible in January 2018 when the airline logged a market share of 14.3 per cent compared to Air India’s 13.3 and SpiceJet’s 12.6. The airline reported its first net loss of Rs 1036 crore in the January-March quarter. The loss further widened in the April to June quarter to Rs 1326 crore due to 36 per cent rise in fuel prices and a simultaneously depreciating rupee. The quarterly losses also tumbled its share price at the Bombay Stock Exchange.
In August 2018, Jet Airways announced a turnaround plan to reduce maintenance costs, optimise fuel
consumption, and cut its debt and interest costs. The company indicated that it would go ahead as scheduled with the induction of more fuel efficient Boeing 737 aircraft in its fleet.
In September 2018, Jet’s market share stood at 14.2 per cent, but it continued sliding further even as rival IndiGo continued aggressively building its market share from 39.7 per cent in January 2018 to 43.2 per cent By December. By December 2018, Jet’s market share had plunged to 12.2 per cent, and Air India’s had eroded to 12.4 while SpiceJet managed to retain its share at 12.3 per cent.
Go Air’s closed 2018 with 8.8 per cent, losing nearly a per cent from a high of 9.6 per cent. Air Asia and Vistara improved its share from 4.3 per cent and 3.6 per cent in January to 5.3 per cent and 3.8 per cent.
21/02/19 Satish Nandgaonkar/Mumbai Mirror
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