IndiGo, India’s biggest carrier by passenger market-share, is also the world’s tenth biggest low-cost carrier (LCC) by seats offered, according to a recent report by CAPA-Centre for Aviation. The Gurgaon-based airline follows Malaysian carrier and soon-to-be local rival AirAsia, which is on the 9th spot in a list led by Southwest Airlines, Ryanair and Easyjet, according to date compiled by the Sydney-based consultant. The airline currently has a fleet of 69 planes and offers 533,700 seats. AirAsia has a smaller fleet of 67 planes, but has 537,840 seats on offer, the report said. Southwest Airlines has a total fleet of 584 planes and 3.3 million seats to sell. IndiGo’s Indian rivals SpiceJet and Go Air are in spots 16 and 36 respectively in a list of 50 budget carriers. The inclusion of India’s budget carriers in the list shows their growing prominence in the global aviation industry.
The LCC segment exploded in India in 2003 with the advent of GR Gopinath’s Air Deccan that introduced unprecedented fares of 1 and 99, and led to an aviation boom, with passenger numbers shooting upwards of 30%.
While Air Deccan couldn’t sustain its balance sheet and sold stake to Vijay Mallya-owned Kingfisher Airlines, other LCCs came in and rapidly grew in the Indian market nibbling away share from their full service rivals. India’s three LCCs together currently control close to 59% of the passenger market although about 40% of India’s total scheduled passenger fleet, according to May data from the Directorate General of Civil Aviation.
The LCC space in India is now set to grow even further with AirAsia planning to set up a local carrier in India in a tie-up with the Tata Group and Arun Bhatia of Telestra Tradeplace. The airline plans to start operations by end of this year or early next year. Jet, India’s second-biggest carrier, also runs low fare flights under a brand called Jet Konnect, while Air India is planning to operate all economy flights on some routes.
IndiGo, owned partly by InterGlobe Enterprises and US-based Caelum Investments, started operations in August 2006, after placing a mammoth order of 100 Airbus A320 planes.
The carrier followed it with an order of 180 planes in 2011, then the biggest passenger aircraft deal by volume in aviation history. It currently has an order of 158 planes. Over the years, the airline has, with its lean business model and operational efficiency, been estimated to be the only profit-making carrier in recent times.
The LCC segment exploded in India in 2003 with the advent of GR Gopinath’s Air Deccan that introduced unprecedented fares of 1 and 99, and led to an aviation boom, with passenger numbers shooting upwards of 30%.
While Air Deccan couldn’t sustain its balance sheet and sold stake to Vijay Mallya-owned Kingfisher Airlines, other LCCs came in and rapidly grew in the Indian market nibbling away share from their full service rivals. India’s three LCCs together currently control close to 59% of the passenger market although about 40% of India’s total scheduled passenger fleet, according to May data from the Directorate General of Civil Aviation.
The LCC space in India is now set to grow even further with AirAsia planning to set up a local carrier in India in a tie-up with the Tata Group and Arun Bhatia of Telestra Tradeplace. The airline plans to start operations by end of this year or early next year. Jet, India’s second-biggest carrier, also runs low fare flights under a brand called Jet Konnect, while Air India is planning to operate all economy flights on some routes.
IndiGo, owned partly by InterGlobe Enterprises and US-based Caelum Investments, started operations in August 2006, after placing a mammoth order of 100 Airbus A320 planes.
The carrier followed it with an order of 180 planes in 2011, then the biggest passenger aircraft deal by volume in aviation history. It currently has an order of 158 planes. Over the years, the airline has, with its lean business model and operational efficiency, been estimated to be the only profit-making carrier in recent times.
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