IndiGo finds a challenger: SpiceJet

SpiceJet has been eating into No 1 rival's market share

Published: Aug 1, 2019 09:25:16 AM IST
Updated: Aug 1, 2019 09:29:22 AM IST

g_119355_spicejet_280x210.jpgImage: Shutterstock

IndiGo has a new challenger. SpiceJet, which was struggling to keep afloat till four years ago—has been cementing its position as India’s second-largest airline by market share. Between April and June, IndiGo’s market share slipped from 49.9 percent to 48.1 percent while SpiceJet’s went up from 13.1 percent to 15.6 percent.
 
According to the Directorate General of Civil Aviation SpiceJet’s market share grew by 250 basis points in June while IndiGo lost 180 basis points. The number of passengers carried by airlines in the month stood at 12 million, indicating a 6 percent growth over May. Indigo is expected to increase capacity by 30 percent in FY20 while SpiceJet will add 80 percent year-over-year in FY20. Already, SpiceJet added 30 aircraft to its fleet from Jet Airways after the airline shut shop in March.

“SpiceJet will get aggressive to gain market share,” said Mayur Milak, an analyst at IndiaNivesh Securities. “This could lead to a price war and add pressure in the 0-15 days booking period. This makes us sceptical towards the industry. The Indigo management admitted to feeling the pressure in the 0-15-day period.”

(This story appears in the 16 August, 2019 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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  • Prateek

    So Indigo has some really well planned metro network and SpiceJet is no match for the schedules, routes that Indigo has. Also on top of it Indigo has actually started to focus more on the International routes where the pricing scenario is much better and has deployed majority of the capacity there. SpiceJet surprisingly has not confronted Indigo on some of the strong monopoly routes - Eg: Indigo is the sole carrier between TRV-BLR flying 4 times a day but SpiceJet never challenges Indigo there (Air India has I guess twice/thrice weekly)

    on Aug 1, 2019
  • Rajagopalan K S

    No airline can make loss as they collect cash in advance for the usage! It\'s just siphoning of funds elsewhere that causes losses!!

    on Aug 1, 2019
  • Puneet

    There is huge difference between services and rides of spicejet and indigo. The rides of indigo are generally punctual and staff on board are cooperative whereas rides of spicejet are generally delayed and the staff on board is rude. You can check spicejet flight departure from Bangkok to Delhi. Its departure time from Bangkok is 0320 in the morning but you will not find even a single day when it took off at right time.

    on Aug 1, 2019
  • Puneet

    There is huge difference between services and rides of spicejet and indigo. The rides of indigo are generally punctual and staff on board are cooperative whereas rides of spicejet are generally delayed and the staff on board is rude. You can check spicejet flight departure from Bangkok to Delhi. Its departure time from Bangkok is 0320 in the morning but you will not find even a single day when it took off at right time.

    on Aug 1, 2019
  • Nawal miharia

    Spice jet can never compete with indigo because of its service

    on Aug 2, 2019
  • Pushpa

    Wonder how our pal Ajay Sungh managed to usher in so many planes in such a short span of time when others even start ups are struggling to induct planes. Has anybody asked this question. Second, how did the Munistry of Civil Aviation allow Ajay Singh to induct the Jet Air planes from lessors within India when foreign registered airplanes are supposed to get out of India to negotiate any fresh lease within India. There is something fishy about this chap Singh and only the opposition can prove this. Both Indigo and Spice Jet needs to be probed on where the funds come from. Will Modi Govt. Open their eyes or is this balanced by someone in the party? Arm twisting was rampant with the Lessors and the Ministry official especially the Secretary and Lady Joint Secretary must be probed.

    on Aug 2, 2019
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