My Account Menu

CAPA Login


Register to trial CAPA Membership!

Robust domestic traffic growth for India in May-2010; New ownership and consolidation in 2010

22-Jun-2010

Airline traffic growth in India remained above 20% last month, spurred by a robust holiday season and economic expansion and indicating that the worst is behind for Indian airlines. Traffic has now rebounded to well above pre-recession levels.

Indian carriers domestic passenger numbers and passenger number growth: May-08 to May-2010

Future ‘looking better’: Load factors, pax levels and yields all improving

Domestic growth first returned in Jun-2009, with growth in every subsequent month, following a turbulent period from Jul-2008 onwards, characterised by weak demand and excess capacity. Financially, the domestic airline industry has been in turbulence for the past two financial years, with weak demand exacerbated by escalating fuel prices in mid 2008.

The industry is estimated to have lost approximately USD2.2 billion in 2009/2010, although it will likely be profitable in the current quarter due to a combination of improved load factor and yields.

Meanwhile, the CFO of Kingfisher Airlines parent, United Breweries Group, Ravi Nedungadi, stated the future is “looking better” for the Indian civil aviation industry. Mr Nedungadi commented: “Airlines are always prone to many external shocks. But by far, Indian airline industry has overcome the painful period and the future is looking better. This is mainly because of two factors. Firstly, the industry has cut capacity from the market and secondly, passengers are coming back. Therefore, the yields per ticket is also improving.”

4.8 million domestic pax in May-2010

During May-2010, according to India’s Ministry of Civil Aviation, domestic Indian airlines handled 4.8 million passengers, a 21.8% year-on-year increase, the highest ever monthly passenger level.

This is an extract from a report available for CAPA Members, or by individual purchase, which also contains the following sections/data:

  • Indian domestic passenger traffic: May-2010
  • Indian carriers domestic market share: May-2010
  • Kingfisher and Paramount witness passenger reductions
  • LCCs lead the way in return to traffic growth
  • Strong load factors
  • Indian carriers seat factor: May-2010 Match capacity with demand: IATA
  • New chapter for SpiceJet as Ross sells stake
    • Kalanithi Maran becomes largest shareholder; sees opportunity in continued growth
    • SpiceJet and Indigo only Indian carriers making a profit: Maran
    • SpiceJet name to remain for now; to expand South and internationally
    • SpiceJet fundraising efforts now on hold
  • Fuel tax a key concern
  • Kingfisher becomes member-elect of oneworld;
  • Air India to join Star; Jet Airways interested in Star
  • Details of Kingfisher Airlines’ oneworld election
  • Conclusion: New ownership and consolidation in 2010

View the full report now!


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.