In just a year, the domestic aviation pie is looking very different. Low-cost airlines look all set to dominate the sky for some time to come.
BANGALORE: In just a year, the domestic aviation pie is looking very different.
While the new entrants have usurped market share from incumbents, low-cost airlines, which were not around three years back, look set to dominate the sky for some time to come.
Understandably, the share of incumbent carriers (Indian Airlines, Jet Airways and Air Sahara) has been dwindling, even as full service carriers (FSCs), which had for long dominated the sky, are trying hard to preserve their market.
Except for Kingfisher Airlines (a new player), which has increased its market share to 10.5% in January this year from 7.6% last January, all other FSCs have lost marketshare, even as the overall share of FSCs has shrivelled to 62% from 79% last January.
The share of low-cost carriers (LCCs), on the other hand, has swelled to 38% from 21%.
Likewise, challenger carriers (Air Deccan, Kingfisher Airlines, SpiceJet, GoAir, Paramount and IndiGo) have hammered down the share of incumbents to 50% from 72% to take their own share up from 28% to 50%.
The biggest loser has been Jet Airways, which has lost 9.2% marketshare from 34.7% last year.
Another incumbent facing the brunt of the new entrants is the state-owned Indian, whose share has been eroded by 8.7 percentage points to 16.30%.
The state-owned carrier, which has been overtaken by budget carrier Air Deccan in the race for the second position, is only slipping further. From being ahead of it by just 0.2 percentage points in November, Air Deccan has extended the lead to 4.4 percentage points in January with a market share of 20.70%.
Another FSC struggling to keep its market from eroding is Air Sahara, whose marketshare is down to 8.2% from 11.6%. All the new players have added marketshare over the last one year — Air Deccan 7.4%, Kingfisher Airlines 2.8%, SpiceJet 2%, GoAir 5%, Paramount 1.5% and IndiGo 4.3%.
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