Air traffic in India has dipped 4% to 38.63 lakh passengers in February from 40.87 lakh in January, according to the data released by the Directorate General of Civil Aviation (DGCA). Traditionally, Jan-March quarter is considered a lean season for air traffic. However, number of passengers carried by domestic airlines in first two months of this year is 19% higher at 80.56 lakh, as against 67.61 lakh in the corresponding period of year 2009, a sign of the sustained economic recovery.
Private carrier Jet Airways has secured 26.1% market share flying 10.08 lakh passengers. Credit JetKonnect, the airline?s no-frills service with load factors of over 90%, launched in May 2009 with nearly 15-10% lower fares then Jet, has helped the carrier report a high market share. The UB group-owned Kingfisher Airlines has managed a 22.7% market share and the carrier flew 8.77 lakh passengers. Flag carrier Air India has secured the third position with a 17.2% market share. The public sector airline flew 6.63 lakh passengers. In the low cost space, Delhi-based Indigo has managed a share of 14.9% by flying 5.77 lakh passengers while SpiceJet flew 4.65 lakh passengers to record a 12% share. The Wadia Group promoted GoAir and Chennai-based Paramount Airways and flew 2.11 lakh ans 0.62 lakh passengers each and commanded a market share of 5.5% and 1.6% respectively.
Citigroup Global Markets, in a recent report, has said it is positive on passenger growth, predicated on a broad-based economic recovery. The analysis by the firm further reveals that airline managements are now focused on shoring up profitability and repairing balance sheets- rather than growth. Hence capacity growth will be relatively muted. On fares and yields, the firm is less optimistic. ?We reckon that fares will increase, but given that fares are high compared to other modes of transport, pricing will be limited to nearly 5% CAGR over the next 2-3 years,? the report stated.
Nikos Kardassis, CEO at Jet said, ?Jet continues to consolidate its leadership position in the Indian aviation industry with five consecutive months of impressive growth. The changed economic scenario has seen a steady rise in air traffic growth.?