The Hindu Business Line : New entrants grow at the cost of legacy air carriers

During January-June this year while Jet Airways continued its domination with a market share of 34 per cent, it was substantially lower than the 42.8 per cent it enjoyed during the same period the previous year.

New Delhi , Sept. 28

New entrants and low-cost airlines have affected the dominant position of legacy carriers operating in the Indian skies. The latest data by the Directorate-General of Civil Aviation shows that during January-June this yearnew entrants such as Kingfisher, Paramount Airways, SpiceJet , Go Air and Air Deccan registered an increase in their market share, while the three legacy carriers — Jet Airways, Indian and Air Sahara — registered a decline.

The data shows that during January-June this year while Jet Airways continued its domination of the Indian skies with a market share of 34 per cent, it was substantially lower than the 42.8 per cent market share it enjoyed during the same period in the previous year.

The story is similar in the case of Indian. During the first six months of the year, the State-owned airline recorded a market share of close to 23 per cent down from 34 per cent recorded during the same period in the previous year. Air Sahara saw its market share decline to 8.7 per cent from 13.2 per cent recorded during January-June last year.

In sharp comparison, the low-cost airline Air Deccan garnered a market share of 17.3 per cent during January-June this year up from 8.7 per cent during the same period last year. Similarly, the low-cost airline SpiceJet captured a market share of 6.5 per cent during January-June this year up from under 1 per cent during the same period in the previous year.

Almost all airlines have, however, reported carrying more passengers during the first six months of this year compared with the same period in the previous year.

During January-June this year, Jet Airways carried 52.17 lakh passengers up from 43.20 lakh passengers during the pervious year, Indian carried 35.08 lakh passengers up from 34.40 lakh the previous year, Air Deccan carried 26.43 lakh passengers up from 8.84 lakh, while SpiceJet carried 9.95 lakh passenger as compared with 75,000 passengers during the previous year.

Air Sahara, however, reported a marginal decline having carried 13.32 lakh passengers down from 13.38 lakh passengers during the previous year.

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