Friday, August 23, 2019

Market share of airlines fluctuates, but smaller carriers fare better

Smaller airlines GoAir and Vistara have managed to either hold on or increase their market share in the domestic market this year. On the other hand, larger carriers, including IndiGo, Air India and SpiceJet, struggled as their share fluctuated.
In the case of the national carrier, the decline has been the sharpest, since April this year.
Earlier this week, industry regulator DGCA released the industry numbers for July.
GoAir, the carrier owned by the Wadia family, has seen its share increasing from 8.7 percent in January to 11.1 percent in July. Interestingly, the airline has managed to hold on to its market share - at 11.1 percent - for three consecutive months since May. It now gives Air India competition for the third spot in the domestic market.
Similarly, Vistara has seen a sharp increase in its share this year. From 3.8 percent in January, the JV between Tata Sons and Singapore Airlines saw its share increasing to 6 percent in July. Air Asia, Tata Sons' other JV airline - this time with Malaysia's Air Asia Berhad - saw its share going up to 6.5 percent in July, from 5.3 percent in January.
All these airlines have made the most of the space created by Jet Airways, which suspended its operations in April. Going by the response to its insolvency process, reviving the airline now looks like a tough task.
The competition has in the meantime aggressively expanded its services. GoAir launched new eight flights in July. In the same month, AirAsia India announced new flights from Delhi, to Chennai and Kolkata.
A month earlier, Vistara added 62 new flights to its network. The airline now connects Mumbai with 10 cities.
23/08/19 Prince Mathews Thomas/Moneycontrol
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