Indian Aviation market has been in a bit of a turmoil over past few quarters. While, everyone is aware of Kingfisher Airlines’ saga, which still remains grounded, others are also operating on a very thin ice. High fuel prices, Government’s restriction (which has been relaxed a bit now) on bringing in foreign money into aviation sector, lower than expected growth in domestic Air passenger traffic, among other things have contributed to Indian Aviation Market’s turmoil. Let us look at some of the data released by the centre:
Indian Domestic Passenger Growth
Thanks to Diwali, the domestic air passenger traffic grew in month of November 2012 by 4.65 lakhs. November registered 50.20 lakh passengers as compared to 45.55 travelers in October 2012 an increase of 10.2 percent.
However, if you compare year on year growth, between January to November, the number of passengers declined in 2012. This year (Jan-Nov 2012) registered 534.14 lakh air passengers as compared 550.33 lakhs during the corresponding period of the previous year showing the growth of -2.94%.
Air Passenger Traffic [November 2012]
Low cost Airline Indigo has consistently performed well and has consistently got higher passenger traffic than other airlines. Indigo flew more passengers than even Jet combined (Jet Lite and Jet Airways). Air India has also done quite well, but it is primarily due to the fact that most of the Government officials and Bureaucrats have been mandated to travel by Air India only, due to which they register high number of passengers, even though their ticket rates are comparatively higher.
Domestic Aviation Market Share
Indigo Airlines leads the Indian domestic passenger market share with 27% followed by Air India and Spice Jet. If you combine Jet Lite and Jet Airways, then they come in at second position with 25% market share.
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