Millennium Post

Air India loses ground to private passenger carriers

Asserting the need to devise a better strategy and combat the competition Air India is facing with private airlines, civil aviation minister Ajit Singh on Tuesday directed  Air India to submit to him a plan to enhance its share in the domestic passenger market within a week. This detailed plan has to include ‘month-wise targets of market share along with corresponding strategy to achieve these targets for the next one year.’

What is noteworthy is the point that domestic  low cost airlines IndiGo and SpiceJet had overtaken Air India carrying more passengers.

Leading in this league in the market  is IndiGo with 27.6 per cent share followed by Jet Airways of 25.2 per cent and SpiceJet 18.5 per cent.  Below Air India which has a share of 18.2 per cent, domestic carrriers like Jet Airways has a market share of 18.7 per cent, Go Air of 7.4 per cent and Kingfisher of  3.2 per cent. While Ajit  Singh emphasised that Air India needs to put in more efforts and asked the airline management to  come out with innovative and customer focused strategies to achieve best utilisation of all planes and also maximum utilisation of each plane. Air India's market share of 18.2 per cent remains the same from July onwards.


Domestic fares in India rose by 29 per cent in the second quarter (Q2) of this financial year compared to that in Q2 last year, as the average overall ticket prices for both domestic and global travel rose by nine per cent, a study has shown. ‘Airfares in India across domestic and international travel saw an overall price rise of 9 per cent Quarter on Quarter (QoQ), with domestic fares within India witnessing a considerable increase of 29 per cent,’ the latest American Express Business Travel Monitor quarterly study said. While the QoQ domestic fares rose by 29 per cent, the year-over-year increase was 11 per cent, it said.

The fares from India to Europe, Middle East and Africa (EMEA) region as well as Intra-Asia Pacific fares saw a five per cent rise, while those to the Americas overall witnessed a marginal increase of two per cent, it said.

In the last quarter, India had observed a strong five per cent rise in airfares for both Intra-Asia Pacific and EMEA destinations, with a significant hike of 13 per cent in business class fares for Intra Asia Pacific travel QoQ.

But fares from India to the Americas saw a marginal increase of two per cent QoQ, while full business airfare to this region remained flat, the study for the quarter said.

American Express Business Travel Monitor tracks a set of round trip airfares originating in the Asia Pacific region to 370 city pairs across the world. Ten countries -- Australia, China, Hong Kong, India, Japan, South Korea, Malaysia, New Zealand, Singapore and Taiwan, are covered. Carl Jones, head of American Express Advisory Services for Asia-Pacific, said India and Australia in particular have seen significant increases in domestic fares which have had an impact on overall fare performance for the region.
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