IndiGo And Tata Group Airlines Corner Nearly 90% Combined Market Share
The duopoly of InterGlobe Aviation Ltd., operator of IndiGo airline, and Tata Group-owned airlines strengthened in June as their combined market share in the Indian aviation market neared 90%.
IndiGo's market share rose to 63.2% in June from 61.4% in May, according to data released by the Directorate General of Civil Aviation. While those of airlines owned by the Tata Group stood at 25.8%.
That takes the combined share of the two entities to 89% in June, 130 basis points higher than May.
The two major players have scheduled more flights ever since Go First declared voluntary bankruptcy on May 3 in an effort to take over the space that the Wadia group-owned airline had previously occupied. Go First's market share stood at 6.4% in April.
IndiGo has been the major beneficiary, as its market share has jumped to 63.4% from 56.8% in April, a rise of 640 basis points in just two months.
The Tata group airlines, on the other hand, haven't been able to exploit the opportunity, as their combined market share rose from 24.9% in April to 26.3% in May, but fell to 25.8% in June.
Akasa Trumps SpiceJet
Akasa Air continued to improve its market share and flew ahead of SpiceJet in June. The late billionaire Rakesh Jhunjhunwala's airline had a market share of 4.9%, compared to SpiceJet's 4.4%.
The Ajay Singh-promoted no-frills carrier is struggling with its own set of challenges. Its market share has dropped 290 basis points since January, while Akasa has gained 210 basis points since then.
The overall air passenger traffic rose nearly 19% year-on-year to 1.25 crore in June. While the number has hit a four-month low, the momentum in travel has held strong, considering the boom since last year's festival period.
With an on-time performance of 88.3% in June, Vistara was the most punctual airline, followed by IndiGo and Akasa Air (both with 87.6%), and AirAsia India (81.7%). Air India and SpiceJet's punctuality was poor, with on-time performances of 69.4% and 59.5%, respectively.
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