Friday, June 28, 2019

Jet Airway’s misfortune seems a boon for rivals

Mumbai: Lenders of Jet Airways may have badly hit by the grounding of the country's oldest private sector airline, but its misfortune has turned out to be a boon for the airline's competitors like SpiceJet and InterGlobe Aviation.

In the December-March quarter of FY19, both Indigo and SpiceJet reported strong top line growth on the back of robust growth in Revenue Passenger Kilometres (RPKM) over same quarter last year and an increase in their yields.
For the quarter Q4FY19, airlines saw an increase in yields coupled with a stark increase in their capacities.

Indigo is still flooding the domestic market as well as the international market with capacity and is guiding for a 30 per cent growth in capacity over FY20; 50 per cent of which will be led by the international fleet addition.

Similarly, SpiceJet did well for quarter despite of the grounding of B737MAX airplanes; the company offset the grounding of the MAX planes by mounting additional frequencies, inducting JET planes on wet lease and by rationalising & optimising the use of its existing fleet.

Indigo is increasing its share in the international market which has a travel time of less than 6 hours (UAE, some routes in China) which have higher yields according to the management.
28/06/19 Ashwin Punnen/Asian Age
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