Kingfisher, GoAir and IndiGo Airlines considering forming an alliance
We have seen a brilliant case of consolidation in the Indian aviation market with the merger of Jet Airways and Air Sahara. However, this collaboration has resulted in the biggest airline company in India which somewhat threatens the existence of smaller companies vying to get a share of the growing Indian aviation market.
The latest news coming in from the market is that the budget players like Kingfisher Airways, GoAir, and Indigo are considering forming an alliance to compete on level playing terms against bigger players in the market. If they indeed go on to form an alliance, it would surely be targeted at the Jetâ€™s dominant position.
With the acquisition of Air Sahara, Jet Airways now controls a major share of some of the most lucrative routes in India. The Jet-Sahara combine would account for nearly 85% of the flights in the lucrative Delhi-Mumbai route. This route alone contributes to almost 50% of the air traffic in the country. In addition, Jet Airways would also get 50% of all parking bays. Indian (Airlines) keeps around 35% leaving little for the smaller players in the market.
Kingfisher Airlines chairman and managing director, Vijay Mallya said in a statement: â€œFor new airlines wishing to launch services between Mumbai and Delhi, overnight parking slots will be required. However, they will be severely constrained and will have to be satisfied with the limited expansion that is taking place.â€
He further added: â€œThe viability of any airline must depend on flying the routes where there is existing traffic. The combination of routes and parallel development of a few non-metro sectors is a viable opportunity. The government has a role to play in ensuring there is no route-specific monopoly.â€