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Aviation sector update – December 2010
In December 2010, domestic passenger traffic recorded growth for the 12th consecutive
month, increasing by 6.8% mom and 16.2% yoy to 52.1lakh passengers. From January
2010 to December 2010, passenger traffic grew by robust 18.7% yoy to 520.2lakh
(438.4lakh) passengers.
SpiceJet, which witnessed strong growth of 24.5% yoy and 10.9% mom in domestic
passenger traffic to 7.2lakhs, is currently the fifth largest carrier in the domestic market after
Kingfisher (9.7lakhs), IndiGo (9.7lakhs), Jet Airways (9.2lakhs) and Air India (8.9lakhs).
The industry’s overall load factor registered mom growth in December, primarily due to
strong tourist demand during the holiday season. Load factors for Kingfisher, IndiGo,
SpiceJet, Jet Airways and Air India stood at 85.9%, 93.3%, 87.8%, 80.1% and 78.8%,
respectively, during the month.
LCCs witnessed an increase in their market share mom, primarily due to timely capacity
addition and taking full advantage of the burgeoning domestic demand. SpiceJet and Indigo
increased their market share to 13.8% (13.3%) and 18.6% (17.3%), respectively. However,
Kingfisher and Jet Airways, including JetLite, saw a decline in market share to 18.6% (17.3%)
and 25.4% (26.2%), respectively. Air India managed to hold on to its market share at 17.1%.
We continue to maintain our Neutral view on SpiceJet.
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