After the closure of Jet Airways, the international segment continues to offer huge opportunity for Indian airlines, mainly private carriers, as Air India is shying away from aggressive capacity expansion. According to a report by ICICI Securities Ltd., Air India could manage to increase its international capacity by only 1% in the first two months of FY20.
While IndiGo could increase its international capacity share from 15% in the first two months of FY19 to 19% in the first two months of FY20, SpiceJet managed to grow it from 22% to 24% in the same time period. GoAir has been able to take its international capacity share to 10%, ICICI Securities said in a note.
“The detailed traffic print of Apr-May ’19 indicates that 70% of the incremental capacity is still being deployed by IndiGo and SpiceJet to domestic routes, and the combined (domestic plus international) capacity of Indian airlines declined 8% during the two months,” the report said. Read More