Indigo Flights Inch Closer to One-Third Mark in the Domestic Market Shares

As per the statistical data provided by the Directorate General of Civil Aviation (DGCA), Government of India, air traffic finally has shown some growth with the arrival of the festive season. The increase in traffic showed a major growth of 13.4 per cent in September as compared to that of August. This was mainly due to over 45 lakhs people flying in this month as compared to that of a little over 40 lakhs in the previous. Most airlines in the domestic sector have been able to fill 70 percent of their seats, even as the demand for cheapest airfare has grown with the Indian economy skidding.

Popular domestic carrier, IndiGo Airlines has been able to collect 30 percent of the shares in the domestic market sphere in September. This has led this airline to inch closer to the coveted one-third mark. Also, this implies that one in every three passengers flying in the domestic circle now takes an IndiGo flight. This comes as a major boost for this low-cost carrier, after IndiGo flight fares slightly increased following the increase in jet-fuel prices.

This year has not been good for the domestic airlines, with September being just the third month in succession when they have utilised more capacity. This actually means that airlines have offered more seats to passengers. However, there is some reasons for worry as some of these carriers have been unable to fill a least of 30 percent of their seats even during the peak season. IndiGo Airlines is leading the domestic market shares despite the threat of a stiff competition from débutantes in this sector like Air Asia, which is expected to commence its operations by the initial quarter next year. However, with an increase in the advance fares as well as spot fares for almost all airlines, the air traffic is expected to become a tad lower. Domestic carriers have to come up with a smart solution to this problem to manage the growing cost of flying and reducing passengers.

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