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Pvt airlines capture 75 pc market share

Ashwini Phadnis

New Delhi , May 16

Private airlines continued their dominance in the domestic market, capturing a market share of more than 75 per cent in the domestic sector in March this year.

The latest data compiled by the Airports Authority of India shows that more than 85 per cent of the domestic air traffic at Bangalore is handled by private sector airlines.

The case is similar at many domestic airports, with the private sector airlines handling 75.7 per cent of domestic passenger traffic at Mumbai, 70.6 per cent at Delhi, and 74 per cent in Chennai.

Currently, there are at least eight established private sector airlines, including Jet Airways, Spice Jet, Air Deccan, Kingfisher Airlines and Paramount.

Meanwhile, replying to a question raised in Parliament today, the Minister for Civil Aviation, Mr Praful Patel, said that the increase in the share of private airlines in domestic air traffic was primarily due to the establishment of new airlines and large-scale induction of capacity in the domestic sector.

Further, some private airlines had gained market share by offering lower airfares, he said.

The Minister added that in 2005, private airlines enjoyed market share of 69 per cent against 31 per cent of Indian Airlines.

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