Remember the capacity crunch in Mumbai after the grounding of Jet Airways? Turns out that the Mumbai airport now has more seats on offer on domestic routes than it had when Jet operated its complete schedule. This is despite the fact that the airport has not given away all the slots of Jet Airways – be it domestic or international.
There is no surprise then that last week, the government held talks with airlines on sustainability. Airline pricing is a function of capacity in the market and demand. And while there were fears of higher fares immediately post suspension of Jet Airways in April, the government-led mechanism with airports to give away slots for temporary period has not only matched the gap, but now exceeded the seats deployed. By June, the difference was down to only 11 departures a day and while there continues to be a slight lag in departures now versus when Jet Airways operated, the interesting turn of events have led to higher seats in the market.
The slots of Jet Airways were divided amongst incumbent airlines. However, the slots were linked to induction of capacity and airlines weren’t allowed to pull out of existing sectors and deploy the capacity to these newly acquired slots at Mumbai. In a scramble to add capacity, SpiceJet became the biggest beneficiary of the slots as it inducted aircraft which earlier flew for Jet Airways and also recruited B737 pilots. While the pilots and crew were absorbed across airlines, the A320 operators will take time to operationalise the pilots and crew as they undergo type rating and training. Vistara followed SpiceJet in inducting the B737s and adding capacity at Mumbai.
A Network Thoughts analysis shows that SpiceJet gained 38 additional departure slots, IndiGo gained 27, Vistara gained 21, while GoAir and AirAsia India gained 9 each. Additionally, Trujet and Star Air have obtained some slots for operations under UDAN.
18/09/19 CNBC TV18
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There is no surprise then that last week, the government held talks with airlines on sustainability. Airline pricing is a function of capacity in the market and demand. And while there were fears of higher fares immediately post suspension of Jet Airways in April, the government-led mechanism with airports to give away slots for temporary period has not only matched the gap, but now exceeded the seats deployed. By June, the difference was down to only 11 departures a day and while there continues to be a slight lag in departures now versus when Jet Airways operated, the interesting turn of events have led to higher seats in the market.
The slots of Jet Airways were divided amongst incumbent airlines. However, the slots were linked to induction of capacity and airlines weren’t allowed to pull out of existing sectors and deploy the capacity to these newly acquired slots at Mumbai. In a scramble to add capacity, SpiceJet became the biggest beneficiary of the slots as it inducted aircraft which earlier flew for Jet Airways and also recruited B737 pilots. While the pilots and crew were absorbed across airlines, the A320 operators will take time to operationalise the pilots and crew as they undergo type rating and training. Vistara followed SpiceJet in inducting the B737s and adding capacity at Mumbai.
A Network Thoughts analysis shows that SpiceJet gained 38 additional departure slots, IndiGo gained 27, Vistara gained 21, while GoAir and AirAsia India gained 9 each. Additionally, Trujet and Star Air have obtained some slots for operations under UDAN.
18/09/19 CNBC TV18
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