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Jun 19, 2012, 10.07 AM IST
Indigo Air has registered a highest market share in May at 24.9% from 19.7% year-on-year. According to the Directorate General of Civil Aviation (DGCA), the Delhi-based airline also has the highest on-time performance at 91.5%, beating Jet Airways--- its bigger rival which has recorded 21.4% share in the same month.
Indigo Air has registered a highest market share in May at 24.9% from 19.7% year-on-year. According to the Directorate General of Civil Aviation (DGCA), the Delhi-based airline also has the highest on-time performance at 91.5%, beating Jet Airways --- its bigger rival which has recorded 21.4% share in the same month.
Meanwhile, Air India's share has fallen to 16.2% from 18% month-on-month. Low fare warriors SpiceJet and GoAir's shares have also not grown much and stood at 18.5% and 7.2% respectively.
IndiGo, experts say has been able to improve its load factors due to the falling share of full service sectors like Kingfisher Airlines and Air India who are grappling with the pilots strike in their respective companies. Contrary to the belief that Jet would be the biggest beneficiary due to the ongoing crisis at KFA and AI, Indigo has taken a leap in its market share.
Moneycontrol.com spoke to experts in the aviation industry as to how Indigo with a much smaller fleet size compared to Jet and AI has been able to benefit the most from the ongoing turbulence in the sector. Following is what they think as the reasons:
*Unlike Jet and AI or KFA, Indigo is the only airline which operates on a hub-and-spoke model. In such a case, the airline operates through one central hub and all its aircraft flies on spokes between destinations and the hub, with very few direct flights between other destinations. “Routing all the traffic through the hub actually makes the overall system more efficient,” says an analyst.
*The airline operates on all metro city routes, tier I and tier II networks between spokes and less desirable locations which do not need to be connected directly to the hub, thereby improving its overall capacity.
*The airline deployed 112% capacity (highest in the industry) on Category III routes, which mainly comprise of smaller cities. According to the route dispersal guidelines of the Directorate General of Civil Aviation (DGCA) the airlines are mandated to deploy 50% of its capacity on these routes. Travel agents say the airline has managed to tap the air travel boom in smaller cities which help it garner better share than its peers.
* Indigo utilizes its aircraft for 16 hours in a day which is considered the highest in the industry, hence can ferry more passengers (on an average its passenger loads have been around 90% in the past one year.)
*Being no-frills is an added advantage for the airline as it takes lesser turn-around time then full service carriers which cater food on-board.
*Due to having the highest on-time performance in the past one year with no record of either pilot strike or flight cancellations, it now commands strong passenger loyalty.
May 21 2013, 13:56
- in Results Boardroom
May 21 2013, 11:05
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