IndiGo and Jet Airways Enjoy Better Market Share Due to SpiceJet Crisis
SpiceJet is going through an uncertain period right now with a lot of cuts in their fleet as well as cancelled flights. The crisis that SpiceJet is going through at the moment has turned out to be profitable for other domestic air carriers like IndiGo and Jet Airways. IndiGo is now the top most carrier as far as domestic airlines is concerned and it has been able to enjoy its top position that it achieved in October in the month of November also. It is currently enjoying a market share of 33.5 percent, whereas the leading domestic carrier SpiceJet’s market shares fell from 17.3 percent in October to just 14.9 percent in November due to cancelled flights and a reduction in the number of flights.
Jet Airways is also enjoying an increase in its market share and it stood at 18.4 percent in November. This is the first time that Jet Airways market share has raised beyond the 18 percent mark which it achieved way back in march this year. Air India, on the other hand, was not able to boost its market share in November and in fact its shares fell to 17.5 percent.
The overall domestic airline traffic has seen a boost in November 2014 when compared to the market share in November 2013. The air traffic domestically has grown by 14.35 percent in India last month and as many as 5.87 million passengers have used the various Airline services in November 2014. The number of people who use domestic airline services last November was 5.13 million.
The growth in the air traffic usage was on the rise for the last two months and in October, the air traffic rise was 18 percent. The fares in November were 15 percent lower than normal and this contributed to an increase in the number of passengers flying domestically. All airlines have reported growth in their occupancy, except Air India.
The load factor of Air India fell from 83.5 percent in October 2014 to just 76.9 percent in November. The load of SpiceJet was the highest and it reported 86.9 percent load factor. Jet Airways load factor stood at 83.8 percent. Despite the high load factor, SpiceJet had to face highest number of cancellations among domestic airlines at 16 percent. SpiceJet also fared very poorly when it came to punctuality which stood at 78.3 percent. IndiGo and Jet Airways fared really well when it came to punctuality with Air India the worst at 72.3 percent.