New Delhi: IndiGo, India’s largest carrier in terms of market share, has consolidated its position in the domestic market by adding more flights than its domestic peers since flights resumed in May.
While IndiGo operated 50% of the total flights during July, the airline’s share increased to about 56% during August (see chart), according to data accessed by ET. At the same time, the share of the second largest domestic carrier, SpiceJet, fell to 14.7% in August from 15.5% in the previous month.
IndiGo is operating 583 flights a day while SpiceJet is a distant second with 183 flights and other airlines such as Air India, Alliance Air, Vistara, AirAsia India and GoAir are operating less than 100 daily flights each.
The only airline that has seen a huge dip in total flights operated between July and August was TruJet, which saw its daily flights fall to six from 24 after some of its aircraft were taken back by lessors.
IndiGo’s market share hit a high of 60.4% in July from 45-50% before the pandemic hit travel and lockdown led to two-month grounding of airlines.
Travel industry watchers said IndiGo is best prepared, both financially and operationally, to grow after the pandemic.
“Clearly, IndiGo would be stronger than other domestic airlines post the pandemic,” said Nishant Pitti, CEO at easemytrip.com, an online travel portal.
“Among all carriers, IndiGo is the only one that has financial muscle to come out of this crisis. If an airline shuts due to financial problems, IndiGo is the only carrier that has resources to fill for a closed airline. So, pandemic could be a blessing in disguise for IndiGo,” said another industry insider, who did not want to be identified.
IndiGo is the only carrier that has cash reserves of Rs 18,450 crore as of June 30, 2020. All other carriers, including Air India, are in a bad financial position.
The only other Indian carrier, which is in a comfortable position owing to the support of its promoters, is Vistara, which is currently focusing on expanding globally. The airline launched flights to London on Friday and is set to connect other destinations in Europe too.
28/08/20 Mihir Mishra/Economic Times
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While IndiGo operated 50% of the total flights during July, the airline’s share increased to about 56% during August (see chart), according to data accessed by ET. At the same time, the share of the second largest domestic carrier, SpiceJet, fell to 14.7% in August from 15.5% in the previous month.
IndiGo is operating 583 flights a day while SpiceJet is a distant second with 183 flights and other airlines such as Air India, Alliance Air, Vistara, AirAsia India and GoAir are operating less than 100 daily flights each.
The only airline that has seen a huge dip in total flights operated between July and August was TruJet, which saw its daily flights fall to six from 24 after some of its aircraft were taken back by lessors.
IndiGo’s market share hit a high of 60.4% in July from 45-50% before the pandemic hit travel and lockdown led to two-month grounding of airlines.
Travel industry watchers said IndiGo is best prepared, both financially and operationally, to grow after the pandemic.
“Clearly, IndiGo would be stronger than other domestic airlines post the pandemic,” said Nishant Pitti, CEO at easemytrip.com, an online travel portal.
“Among all carriers, IndiGo is the only one that has financial muscle to come out of this crisis. If an airline shuts due to financial problems, IndiGo is the only carrier that has resources to fill for a closed airline. So, pandemic could be a blessing in disguise for IndiGo,” said another industry insider, who did not want to be identified.
IndiGo is the only carrier that has cash reserves of Rs 18,450 crore as of June 30, 2020. All other carriers, including Air India, are in a bad financial position.
The only other Indian carrier, which is in a comfortable position owing to the support of its promoters, is Vistara, which is currently focusing on expanding globally. The airline launched flights to London on Friday and is set to connect other destinations in Europe too.
28/08/20 Mihir Mishra/Economic Times
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