New airlines scoop out bigger pie

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.
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 full service carriers (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%.
20/02/07 Praveena Sharma/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: General Aviation feb 2007