Victor Chi
Updated on: October 11, 2024 7:52 am GMT
In a significant shift in the Indian aviation landscape, SpiceJet’s domestic market share has dropped to 2.3% in August, down from 3.1% in July, according to the Directorate General of Civil Aviation (DGCA). The latest data reveals that while the overall passenger traffic in the domestic aviation sector has experienced a notable increase, certain airlines have found themselves on the losing end of this growth.
Growth in Passenger Traffic
The DGCA reported that Indian airlines transported approximately 1.31 crore passengers in August 2024, marking a 5.7% increase compared to the same month last year, when 1.24 crore domestic passengers were recorded. This figure also represents an improvement from the 1.29 crore passengers flown in July 2024, highlighting a steady recovery in air travel post-pandemic.
Passenger Statistics and Trends
The surge in passenger numbers is indicative of a revitalized interest in air travel within the country. From January to August 2024, domestic airlines cumulatively carried around 1,054.66 lakh passengers, reflecting a year-on-year growth rate of 4.82%. Such figures underscore the resilience of the aviation sector, even as certain carriers struggle to maintain their market share.
Flight Delays and Cancellations
Despite the uptick in passenger numbers, August was not without its challenges. Flight delays impacted approximately 1.79 lakh passengers, leading to airlines compensating around Rs 2.44 crore for facilitation. Moreover, 38,599 passengers experienced flight cancellations, for which airlines paid out compensation and provided facilities worth Rs 1.14 crore. The cancellation rate for the month stood at 0.83%. Additionally, 728 passengers were denied boarding, resulting in compensations amounting to Rs 77.96 lakh.
On-Time Performance: The Standings
Timeliness remains a crucial measure of service quality in aviation. The on-time performance (OTP) for various airlines in August presented a mixed picture. Leading the industry was Akasa Air with an OTP of 71.2%, followed closely by Vistara at 68.6%. AIX Connect followed with an OTP of 66.8%, while both IndiGo and Air India matched at 66%. In a concerning trend, SpiceJet lagged with an OTP of only 31%, while Alliance Air had a slightly better score at 55.3%.
Market Share Dynamics
The competitive landscape of India’s aviation sector saw notable shifts in market share among the airlines. IndiGo consolidated its dominance, increasing its market share from the previous month to 62.4%. Air India also climbed to a market share of 14.7% in August, signaling its competitive resurgence. Vistara made gains as well, increasing its share to 10.3%. However, the news was less favorable for SpiceJet and Akasa Air, both of which recorded slight declines in their market shares.
Summary of Market Shares
- IndiGo: 62.4%
- Air India: 14.7%
- Vistara: 10.3%
- AIX Connect: Declined
- Akasa Air: Declined
- Alliance Air: 0.9%
- SpiceJet: 2.3% (down from 3.1%)
Passenger Complaints and Feedback
In August, the DGCA recorded a total of 1,031 passenger-related complaints. The data points to approximately 0.79 complaints per 10,000 passengers, indicating that customer service quality remains an area for improvement among airlines. Airlines need to address these concerns promptly to enhance overall passenger satisfaction and trust in their services.
Moving Forward
As the aviation industry continues to rebound, airlines will face the dual challenges of improving their operational efficiencies while competing for market share. The ongoing adjustments in route management, pricing strategies, and customer service initiatives will be critical for airlines aiming to enhance their standing in this evolving sector.
The information from the DGCA shows what the aviation industry looks like right now and reminds us that airlines are always competing with each other. SpiceJet’s recent results show how important it is for airlines to change and improve to meet the growing needs of passengers and to keep up with their rivals.
