- Created: Tuesday, 29 July 2014 16:12
Spice Jet expanded its market reach inflating its to 19 percent crossing over the third largest airline, Air India closing at 18.5 percent in the first quarter report of the current financial year. IndiGo stood as the star player holding 31.6 percent of the market.
Spice Jet ranks among the most affordable carriers in India. The airline is moving forward with aim to increase its market coverage resulting in higher profits and expansion of the business.
Data complied in the beginning of FY 2014-15 shows budget carrier's extension and Air India's compression over the same period of time. In the month of June, Spice Jet explored variants in the market offering high discounts formulating lower air fares which attracted budget concerned customers to switch over to the best deals available.
Spice Jet flew off racing for the third place in the market winning over the customers of Air India, the national carrier. While analyzing the trend, Spice Jet set a goal to overpower market coverage of Air India, as the charts show in the month of March 14 over February 14.
Directorate General of Civil Aviation (DGCA) disclosed, SpiceJet's market share hiked 1.1 percent on monthly basis from 17.9 percent in May to 19 percent in June, walking over the record of Air India, which reported market share closing at 18.5 percent. IndiGo headed the Indian skies leading with 31.6 percent market share under its grip during the last month. Jet Airways along with Jet Lite faced major issues with a steep decline in its market share to 19.6% in June from 21% in May.
One one hand shares of renowned airlines, i.e. IndiGo and Air India sank hitting marginal lows, small-scale airline GoAir stood apart hiking its share in the aviation sector, along with the budget carrier amid rise in market share to 10.1 percent in June over 9.8 percent in May. GoAir set a new benchmark as it resulted a double-digit growth for the first time since it commenced flying in the sky of India.
Considering the load handled by the airlines, GoAir lead the market reporting 81.5 percent traffic in its air route, Spice Jet seconded at the position recording 81.4 percent loaded airlines in June. IndiGo's air load fell from 82 percent in May to 79.1 percent in June.
With increasing competition in the aviation skyline, airlines are offering regular discounts and memberships to retain their customers. Analysts stated, "As per our computations, airlines offered around 15 to 16 flash sales to bump up their loads."
Jet Airways, in which Abu-Dhabi based Etihad Airways holds 24 percent ownership, announced their merging plans in the previous week to grow their operations in the Indian markets.
Airline major Jet is giving a special fare offer as following its strategic alliance stating "last week fare is having an introductory discount off at flat 20 percent to 50 percent on regular fares on the joint network of the two airlines covering more than 135 destinations worldwide."
The joint special fare has a travel validity effective September 1, 2014 till June 15, 2015, for flights within India and from September 1 till November 30, 2014 for flights to international destinations.