Tuesday, November 19, 2019

Jet Airways: These are the airlines that benefitted the most from its demise

The July–September quarter has traditionally been a weak quarter and airlines have struggled financially and operationally in the past. But this year was different because July–September was the first full quarter that had no Jet Airways. Remember, by then Jet’s competitors had lapped up its slots and aircraft.

Clearly, there are multiple winners with each airline trying to corner whatever was possible. In terms of absolute passengers, IndiGo added 21 lakh passengers, cornering a major share of what was left behind by Jet Airways. But due to its size, this translates into a growth of 14 percent for the airline.
The highest growth was with Vistara and AirAsia India – the Tata Group-owned airlines, growing at 57 percent and 42 percent, respectively in terms of passengers carried. Spicejet, which took the maximum aircraft from Jet Airways, had a modest growth of 28 percent in passenger numbers, even when its capacity by ASK (Available Seat Kilometers) grew by 43 percent.
However, growth follows capacity and has largely been in sync in recent years. A comparison of capacity deployed in the market over the same quarter the previous year against the passengers added for the same period shows that AirAsia India and Vistara have added far more passengers than the capacity added, while GoAir and IndiGo have also been on the positive side.
The surprising numbers come from Spicejet, which added 42.8 percent capacity by ASK but could add only 28 percent of passengers. An indication that the airline has to look at its route network seriously and possibly look for shorter hops than longer flights to create the balance.
While IndiGo complained that it had not got its due in terms of re-allocation of slots, the airline has carried 21 lakh additional passengers. This period has turned out to be a blessing in disguise for AirAsia India and Vistara, which would have otherwise found very difficult to grow in Mumbai. The unprecedented growth for Vistara and AirAsia India is what defined the market after the fall of Jet Airways.
19/11/19 Ameya Joshi/CNBC TV18
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