Air India fails to capitalise on Jet Airways woes

By: |
Updated: August 23, 2019 3:46:36 AM

Meanwhile, overall domestic passenger traffic continue to move in the slow lane; the traffic grew by 3% year-on-year amid higher fares and weak travel demand due to off season. A total of 11.9 million passengers booked air travel for July 2019 as compared to 11.5 million in July 2018.

Air India, Jet Airways, industry news, National carrier, jet airways news, jet airways stock, jet airways crisisAnalysts believe that Air India’s performance has been affected due to 15 aircraft which have been grounded for over a year now. (Reuters)

National carrier Air India has failed to capitalise on shutdown of Jet Airways so far, with its domestic passenger traffic falling since April due to grounding of aircraft for want of service and spares. The state-owned carrier, which carried 13.9% of the total domestic passengers in April 2019, reported 12.4% market share for the month of July, according to the data released by directorate general of civil aviation (DGCA) on Thursday.

Analysts believe that Air India’s performance has been affected due to 15 aircraft which have been grounded for over a year now. The airline, which has a fleet of 128 aircraft, plans to bring these aircraft back into service by October end. “Despite getting slots from Jet’s quota Air India hasn’t made gains in the domestic market. It hasn’t added significant capacities as more than 10% of its fleet is grounded for spares” an analyst with a foreign brokerage firm pointed out.

Read| Rupee falls to 2019 lows on Yuan depreciation, selloff

Meanwhile, overall domestic passenger traffic continue to move in the slow lane; the traffic grew by 3% year-on-year amid higher fares and weak travel demand due to off season. A total of 11.9 million passengers booked air travel for July 2019 as compared to 11.5 million in July 2018.

Domestic passenger traffic has increased by 3.1% y-o-y in the first seven months of CY19. In terms of market share, budget carrier IndiGo flew 47.8% of the domestic traffic in July 2019. While SpiceJet accounted for 15.5% share of domestic pie, GoAir carried 11.1% of the total in-bound passengers. Domestic market share for Tata Sons joint ventures carriers Air Asia and Vistara stood at 6.5% and 6% respectively.
All major scheduled carriers witnessed seat occupancy between 79.7-92.4% in July. Aviation consultancy firm CAPA India has projected less than 5% y-o-y growth in FY20 for the domestic market.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.