In a remarkable turn of events, Akasa, a young player in the aviation industry, outshone SpiceJet in terms of domestic market share in June 2023.
Led by Vinay Dube, Akasa transported an impressive 6.2 lakh domestic passengers last month, while SpiceJet trailed behind at 5.5 lakh. However, IndiGo maintained its position as the dominant force in the domestic market with a commanding 63.2 percent market share.
Currently operating with a fleet of 19 aircraft, Akasa is set to receive its 20th aircraft later this month, making it eligible to commence international flights. This development coincides with the airline’s upcoming first anniversary on August 7, 2023.
In contrast, SpiceJet promoter Ajay Singh has been grappling with fundraising efforts and recently announced an infusion of Rs 500 crore, which falls short of the substantial funds required to meet the airline’s financial obligations.
Akasa has been steadily expanding its fleet, adding an aircraft approximately every two weeks since August last year, despite facing challenges due to supply chain constraints. The airline has a pending order for 57 Boeing 737 MAX aircraft, scheduled to be delivered over the next four years.
Meanwhile, DGCA data reveals that 1.25 crore passengers flew within India in June 2023, marking a 19 percent increase from the same month last year when 1.05 crore passengers traveled domestically. The first half of the calendar year (January-June) witnessed a remarkable 33 percent surge in domestic passengers, reaching 7.6 crores compared to 5.7 crores in the corresponding period last year. This growth occurred despite the suspension of all flights by GoFirst, which operates a fleet of over 50 planes, since May 3, 2023.
June is a peak travel month during the summer season, and despite the challenges, major airlines reported aircraft occupancy rates of over 90 percent on domestic flights.
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