SpiceJet Gains Good Market Share in July 2014

SpiceJet, an Indian airline owned by Sun Group of India, reported an increase in the market share by 21% in the domestic sector which makes them the second largest airline in terms of domestic passenger share. This is primarily due to heavy discounts during the year, adding exciting new products like SpiceFlex and SpiceMax. SpiceJet did well and the market share increased by 1.9 basis points. Indigo topped the parameters and emerged as the best airline but the domestic market share however declined to 30.7% from 31.6% in June. Air India declined by 18.05% which was in line with Spicejet. However Jet Lite fared lowest with the market share of 3.9%.

Spicejet has recently launced its "On time guarantee" which assures the passengers that if their flight is delayed for any reason, the flyers will be automatically compensated with discount vouchers in their next travel. The airline operates more than 340 daily flights to 47 destinations, including 40 Indian and 7 international cities.

In terms of the load factor, as per the data released by directorate general of civil aviation (DGCA), Spicejet tops load factor in July by 79.4% which outperforms all the other airlines. However GoAir came down by 70% which was in line with SpiceJet in the month of June. Indigo was close behind Spicejet and managed to fill around 79.1%. Meanwhile Jet Airways was at the bottom with load factor at 69%.
 
“Our increase in loads and share is the result of our new network, improved branding and product, and most importantly, our dynamic pricing and revenue management approach where we believe flying empty seats, which is the ultimate perishable commodity, is a waste especially for budget airlines," said Sanjiv Kapoor, Chief Operating Officer (COO), SpiceJet.