There is an intresting issue which crops up each time in my mind whenever i read any news items related to market share. I remember reading abt the same somewhere in the article which was talking abt IC,s declining market share..
With more and more people taking to skies due to this LCC boom does it actually matter for airlines how much market share each has been able to capture. The primary goal of the airline should be that it should be able to serve more pax than what it was doing in last previous years.
Offcourse with more and more entrants in the market the market share would get divided . Infact i dont remember exactly which newspaper was it. Bt it quoted that even though market share of IC was declining the number of people it was flying was more than wat it was since last few years...
This ultimately means these market share figures are absolutely good for nothing
With the entry of new airlines, it may not be possible for airlines to have the same market share as earlier, the criteria to measure the performance should be growth and not just the market share.
So its more of a marketing thing. Bt does it actually make any sense. Because i think market share can correspondingly increase as an wen a particular airline introduces more services and flights on various sectors...
A very strong rumour is that DN is getting into bed with 9W
Thats from quite some time. But it is believed that talks broke up between the two when 9W was to take over S2. This had upset DN-9W talks. Don't know if they have started allover again
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Jet Airways and Air Deccan are on the opposite ends of the Indian Aviation spectrum. If they do ever merge, so will Air Deccan become Jet Airways Lite?
Naa it looks more of a rumour to me. Infact DN themselves have an ambitious plan of becoming the Ryanair of India. Why on earth they wud want to sell themselves to Jet.
Seat 13A wrote: Jet Airways and Air Deccan are on the opposite ends of the Indian Aviation spectrum. If they do ever merge, so will Air Deccan become Jet Airways Lite?
I didnt mention a merger but some sort of a strategic deal or something like that...don't know clearly
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Light travels faster than sound...thats why people appear bright, until you hear them talk!
ATREYEE DEV ROY Posted online: Monday, November 13, 2006 at 0040 hours IST
NEW DELHI, NOV 12: To retain its position as the second largest domestic airline, state-owned Indian Airlines is going for aggressive expansion of both its fleet as well as distribution network. After deciding to take on lease five A320s and six regional jets, the company is likely to go live on all the major global distribution systems (GDS) in the country by next week including Galileo and Amadeus, industry sources said.
With the low cost phenomenon catching up in the country, the full service carriers are losing out on the yields, and therefore the move is seen as a calculated measure to maximise on the availability.
The final deal with GDS providers is expected to be signed on November 16. Earlier, the airline for its domestic distribution depended on only Abacus, which offered services for only 60 cents per segment, i.e.,one flight. But being available on only one GDS restricted the airline’s reach.
By extending to others, IA will have to shell out almost $1.6 to $1.8 per segment but will get access to 27,000 more dedicated terminals and 11,000 travel agents in the country just through Galileo and Amadeus, thereby ensuring a larger customer base.
According to an industry expert, “With the airlines focused on the market share, our GDS will provide them with a wider access to travel agents across the country.
Also, it will provide travel agents access to book flight tickets on one of the largest airlines in the country.”
Besides the decision to be available with all the GDS majors, the lease agreement for two A320s (which ended in October this year) have been revised for another four and a half years. Also the lease period for two more A320 family aircraft, which were supposed to be returned in March 2007, has been extended for three more years, a senior IAs’ official informed.
The airline, currently operates a fleet of 73 aircraft. With the addition of 11 more aircraft, the carrier will have the largest fleet size among the domestic carriers, 26 more than the current market leader Jet Airways’s fleet of 57 aircraft.
On the international network, the airline already has a wide distribution system via seven GDSs comprising Amadeus, Galileo, Fabre, Abacus, Axess, Infini and Worldspan.
ATREYEE DEV ROY Posted online: Monday, November 20, 2006 at 0112 hours IST
NEW DELHI, NOV 19: India's youngest domestic carrier Indigo Airlines has climbed to the third spot in capacity utilisation with a seat factor of 73.5% in October, the third month of its operation. SpiceJet continues to be at the top with a load factor of 77.3%, followed by Air Deccan at 76%. According to the directorate general of civil aviation’s market share figures, October proved to be particularly beneficial to low cost carriers as the market share of SpiceJet, Go Air and Indigo increased from 6.8%, 2.5% and 1.9% in September this year to 7.1%, 3.4% and 3.5%, respectively, in October.
However, despite offering a large number of tickets at nominal prices of Rs 3 and Rs 6, India’s first low-cost carrier Air Deccan’s market share has actually been on the downslide. After touching a high of 21.2% in June, the airline’s share registered an average of 19.3% in the second quarter of the current financial year, further dropping to 18.1% in October.
State-owned Indian Airlines’ market share plummeted below 20% for the first time in 2006. It registered a market share of 19.9%. However, it retains its position as the second largest domestic carrier. It isn’t easy going for the largest private sector carrier Jet Airways either. For the first time in over five years, the market share of the largest private carrier Jet Airways had dipped below 30% to stand at 28.4% in September, and registered a minor loss of 0.1% to stand at 28.3% in October. Jet has been continuously losing market share this year.
I think this is turning out to be another case of different talk among different people. While KCM quoted the latest airline pax shares. Delhi HT today talks about different market shares and comes up with figures also.
For Month of Oct, 06
Jet Airways (9W) 28.3 % carried 8Lakhs pax
Indian (IC) 19.9% carried 5.63Lakhs pax
Air Sahara (S2) 9.4% carried 2.65Lakhs pax
Sahara has been able to consolidate its position by carry 2.65lakhs pax in october compared to 1.92 lakhs which it did in July 06 immediately after the fallout of the merger in June which comes to a 38% increase.
Total pax carried in the month of oct is 28.24Lakhs.