Wednesday, October 19, 2016

September 2016: Performance of Indian carriers in domestic aviation market

by Soumen Mukherjee

Airlines in India together carried a total of 82.30 lakh (8.23 million) passengers in the domestic sector in September 2016. Continuing its dream run with above 20% year on year growth rate, the domestic aviation sector had handled 726.98 lakh passengers with 23.17% YoY growth during first nine month (January-September) of 2016 over the same period a year ago. While the MoM growth rate for the month of August was at 23.46%. Going by the passenger growth trend of the first three quarters of 2016 and the planned capacity expansion during the fourth quarter of 2016 (LCCs like IndiGo, GoAir and FSC like Vistara), it remains only matter of time that domestic aviation sector in India to record 100 million annual passenger for the first time in 2016. 





After flirting with 38-39% market share for some months, IndiGo finally grabs 40% share of India's domestic aviation market. And the gap between number one IndiGo and number two Jet is ever widening with Jet Airways group reduced down to below 19%; This huge lead of IndiGo over others is something that used to exist in Indian market before the arrival of low-cost carriers in early 2000s when there were only two-three players operating.  IndiGo's market share is now equivalent to the combined market share of Jet Airways, Air India and GoAir (41.6%).

Vistara once again regained the the top position in on-time performance chart for the month of September. The Tata Singapore Airlines joint venture airlines has been on the number one OTP position for most of its 21 months operations but had lately slipped in last two months. SpiceJet which came second in terms of OPT in September 2016 have indeed improved its on-time performance in recent times. But it was surprising to see it involved into bitter rhetoric to claim its superiority in July 2016 disregarding the relatively smaller size of operation of Vistara which was the actual leader. In that way, IndiGo the largest of all airlines in India will simply ignore all other airlines.
If not, OTP then its passenger load factor (PLF) where SpiceJet has established its indisputable leadership for the last 17 months. The second largest low cost carrier is flying its planes more than 90% full since May 2015. Vistara which has struggled to fill its aircraft from its inception has marginally improved its PLF to over 72% and the newest regional airline Air Carnival has replaced it from the bottom position. 

13 comments:

  1. It is very encouraging sign for Indian aviation to see such stable growth. The need of the hour is 20 seat aircraft. Perhaps HAL is the only company with ample opportunities, yet lack that vision or infrastructure to go ahead and pursue. They could market and get several orders for Dornier Do 228NG which they can build with license. Do you think such small aircraft make several lean routes viable to start with?

    ReplyDelete
    Replies
    1. Though many analysts were skeptical about domestic sector continuing with 20% growth in 2016 similar to 2015. I was really very bullish about this prospect. Oil price is at historical low and airlines are carry-forwarding the benefits to passengers which is believed to be the main driver of the phenomenal passenger growth in India.

      I don't see HAL coming up with indigenous civilian aircraft in next 10 years but licence production of Dornier has good potential provided it suits Air India's business plan. Moreover Mahindra likely to start promoting its own sub 20 seater turboprops which will be manufactured in India.

      Delete
  2. What's your view on Air Carnival? How do you think they would succeed in the Market?

    ReplyDelete
  3. nice blog.
    Secure your job in aviation.Best aviation academy in kochi - Flyon academy.More job opportunities available in the field of aviation. More course details visit http://flyonacademy.com

    ReplyDelete
  4. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business.
    Mcx free tips

    ReplyDelete
  5. Are you looking for a loan to clear off your dept and start up your own Business? have you being going all over yet not able to get a legit loan Company that will loan you? Here is your final solution, We can give you any amount you need provided you are going to pay back within the period of time given without any problem. Apply now and contact us for more details
    abdullahibrahimlender@gmail.com
    whatspp Number +918929490461
    Mr Abdullah Ibrahim

    ReplyDelete
  6. INSTANT AFFORDABLE PERSONAL/BUSINESS/HOME/INVESTMENT LOAN OFFER WITHOUT COST/STRESS CONTACT US TODAY VIA Call/Text +1(415)630-7138 Whatsapp +19292227023 Email drbenjaminfinance@gmail.com

    We are financial consultants providing reliable loans to individuals and funding for business, home and projects start up. Are you tired of seeking loans or are you in any financial mess. Do you have a low credit score, and you will find it difficult to get loans from banks and other financial institutions? then worry no more for we are the solution to your financial misfortune. we offer all types of loan ranging from $5,000.00 to $533,000,000.00USD with a low interest rate of 2% and loan duration of 1 to 35 years to pay back the loan secure and unsecured. Are you losing sleep at nights worrying how to get a Legit Loan Lender? Contact us via Call/Text +1(415)630-7138 Email drbenjaminfinance@gmail.com

    Do you have a bad credit? Do you need money to pay bills? Do you need loan to buy, refinance or renovate your home? Is it necessary to start a new business? Do you have an unfinished project due to poor funding? Do you need money to invest in any specialty that will benefit you? DR.BENJAMIN FINANCIER LOANS aims is to provide excellent professional financial services which include the followings

    * Personal loan * Business loan
    * Home loan * Farm Loan
    * Education loan * Debt consolidation loan
    * Truck Loan * Car Loan
    * Refinery Loan
    * Equipment Loan
    * Hotels Loan
    * Refinancing Loan

    Yours Faithfully
    Dr Benjamin Scarlett Owen
    Whatsapp +19292227023
    Call/Text +1(415)630-7138
    NOTE: GET YOUR INSTANT LOAN APPROVAL 100% GUARANTEED TODAY NO MATTER YOUR CREDIT SCORE. drbenjaminfinance@gmail.com

    ReplyDelete
  7. Do you need Personal Finance?
    Business Cash Finance?
    Unsecured Finance
    Fast and Simple Finance?
    Quick Application Process?
    Finance. Services Rendered include,
    *Debt Consolidation Finance
    *Business Finance Services
    *Personal Finance services Help
    contact us today and get the best lending service
    personal cash business cash just email us below
    Contact Us: financialserviceoffer876@gmail.com
    call or add us on what's app +918929509036

    ReplyDelete
  8. Do you need a quick loan?
    Have you been denied a bank loan?
    Do you need a loan during this pandemic?
    interest rate of 2% no matter your location
    Do you need a loan to solve your financial problems?
    If so, then you are in luck because my company lends for a short time and the interest rate is low. If you are interested, Kindly reply to us at (Whats App) number:+919394133968
    patialalegitimate515@gmail.com Mr Jeffery.

    ReplyDelete
  9. What really bring me to this blog is your caption and intro. I must confess you are indeed a webmaster. You know how to get your readers attention. Keep it up. Take a look at How to Apply for a Green Card

    ReplyDelete
  10. HELLO GET OUT OF FINANCIAL MESS WITH THE HELP OF drbenjaminfinance@gmail.com

    I have been in financial mess for the past months, I’m a single mum with kids to look after. My name is REBECCA MICHAELSON, and am from Ridley Park, Pennsylvania. A couple of weeks ago My friend visited me and along our discussion she told me about DR BENJAMIN OWEN FINANCE of drbenjaminfinance@gmail.com that he can help me out of my financial situation, I never believed cause I have spend so much money on different loan lenders who did nothing other than running away with my money. She advised, I gave it a try because she and some of her colleagues were rescued too by this Godsent lender with loans to revive their dying businesses and paying off bills. so I mailed him and explain all about my financial situation and therefore took me through the loan process which was very brief and easy. After that my loan application worth $278,000.00USD was granted, all i did was to follow the processing and be cooperative and today I am a proud business owner sharing the testimony of God-sent Lender. You can as well reach him through the Company WhatsApp +19292227023 Email drbenjaminfinance@gmail.com

    THANK YOU VERY MUCH

    ReplyDelete
  11. Thanks for supporting your time to post such an interesting & useful content.Thank you so much, I appreciate your work.
    outbound call center campaigns

    ReplyDelete