Mumbai: While India’s domestic air passenger traffic continues to lag behind the previous year's figures, the underlying structure of the country's aviation landscape is undergoing a dramatic structural transformation. Fresh regulatory data underscores a widening market divide as low-cost giant IndiGo is asserting total market dominance, whereas once-budget powerhouse SpiceJet is spiralling toward operational peripheral status.
IndiGo Expands Domestic Aviation Market Dominance
According to the latest data from the Directorate General of Civil Aviation (DGCA), IndiGo’s footprint expanded to record highs at 65.9% in the third quarter of the current year, while SpiceJet’s market presence rapidly dissolved to a mere 1.1%. IndiGo's quarterly market share has increased consistently from 63.3% in Q1 to 65.4% in Q2 and the highest at 65.9% in the third quarter, with the peak recorded in July at 67.4%.
To its contrary, SpiceJet's market share has consistently declined over the three quarters from 3.9% to 2.6% and 1.1%, respectively. The airline recorded its lowest share in the month of September, when it occupied only 0.9% of the market.
According to the consolidated figures for all three quarters, market leaders IndiGo and the consolidated Air India Group control over 90% of India’s domestic skies, leaving remaining players competing for small margins.
SpiceJet Faces Mounting Operational Challenges
SpiceJet’s falling market share is closely linked to worsening operational issues. In September alone, 39.36% of all SpiceJet flights were delayed by over two hours. It also recorded the lowest on-time performance at just 16.6%, creating chaos among passengers. On social media, netizens share their ordeals with SpiceJet on a daily basis and even make memes about it, signifying that the airline's apathy has been normalised.
According to DGCA, around 35,956 passengers were affected due to SpiceJet flights being delayed for over two hours. Similarly, around 21,762 passengers were affected by SpiceJet's cancellations. The airline compensated these passengers with refreshments, accommodation and alternate flights at a cost of over Rs 49 lakhs.
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Financial Struggles Impact SpiceJet Fleet Operations
Industry experts highlighted that IndiGo’s massive fleet scale allows it to absorb unforeseen shocks and groundings far better than smaller rivals. On the other hand, severe liquidity issues and legal disputes with aircraft lessors have forced SpiceJet to ground multiple aircraft from its depleting fleet. “A fleet that cannot take off cannot generate revenue,” said an expert. Notably, the carrier is also facing issues in paying salaries to its employees across the hierarchy, with multiple employees still left to be paid for the past three months.
