The interim but indefinite suspension of Jet Airways has left a large void but the situation is likely to normalise in domestic space as airlines are adding 51-66 more aircraft than their planned induction for the current financial year, according to aviation advisory firm CAPA.
"SpiceJet, Vistara and AirAsia India are accelerating fleet expansion by 51-66 aircraft above their original plan for FY20. SpiceJet will account for 30-40 of them. This should restore loss of Jet’s domestic capacity by September 2019," CAPA India said.
Further, the aviation advisory and research firm also expects Indian carriers to induct 134-151 aircraft in 2019-20 (Apr-Mar) but on a net level, the operating fleet will only increase by 19-36 aircraft as much of the addition will compensate for the loss of Jet Airways' capacity from the market.
Overall, CAPA expects the domestic traffic growth to be muted in 2019-20 (Apr-Mar) at less than 5 percent on year with traffic declining in the first half but to be offset by the resumption of 5-8 percent growth from October onwards. It has also warned that the rosy phase of high double-digit growth rates which was observed during the last five years is unlikely to return in the near term.
The overall fleet size of Indian low-cost carriers, which largely include all carriers other than Vistara and Air India, is likely to cross 500 in the current year from around 400 currently.
"Another large narrowbody and widebody order is expected in next 12 months," CAPA said. It is important to recall here that both IndiGo and SpiceJet have said in the recent past that they are evaluating the wide-bodied aircraft model. Currently, they operate a fleet of narrow-bodied aircraft and turboprops.
6/06/19 Anu Sharma/CNBC TV18
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"SpiceJet, Vistara and AirAsia India are accelerating fleet expansion by 51-66 aircraft above their original plan for FY20. SpiceJet will account for 30-40 of them. This should restore loss of Jet’s domestic capacity by September 2019," CAPA India said.
Further, the aviation advisory and research firm also expects Indian carriers to induct 134-151 aircraft in 2019-20 (Apr-Mar) but on a net level, the operating fleet will only increase by 19-36 aircraft as much of the addition will compensate for the loss of Jet Airways' capacity from the market.
Overall, CAPA expects the domestic traffic growth to be muted in 2019-20 (Apr-Mar) at less than 5 percent on year with traffic declining in the first half but to be offset by the resumption of 5-8 percent growth from October onwards. It has also warned that the rosy phase of high double-digit growth rates which was observed during the last five years is unlikely to return in the near term.
The overall fleet size of Indian low-cost carriers, which largely include all carriers other than Vistara and Air India, is likely to cross 500 in the current year from around 400 currently.
"Another large narrowbody and widebody order is expected in next 12 months," CAPA said. It is important to recall here that both IndiGo and SpiceJet have said in the recent past that they are evaluating the wide-bodied aircraft model. Currently, they operate a fleet of narrow-bodied aircraft and turboprops.
6/06/19 Anu Sharma/CNBC TV18
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