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Private airlines win major market share in India

India's private airlines, Jet Airways and Air Sahara, edged out state-run Indian Airlines to lead the market in 2000 with a higher combined share, according to aviation regulatory authority figures.

The two private airlines together carried seven million of the total 13.3 million domestic passengers last year, while Indian Airlines ferried 6.3 million, the Directorate General of Civil Aviation said on Monday.

This is the first time that private airlines have garnered more market share than state-run Indian Airlines since the country threw open its domestic skies to private players in 1993. For Indian Airlines, a declining market share may affect the government's plan to privatise the airline by mid-year.

"Private airlines have done better in 2000. Factors like the crash of an Indian Airlines plane in July seem to have affected its market share," Director General of Civil Aviation H S Khola said.

Last July, an aircraft belonging to an Indian Airlines unit, Alliance Air, crashed in eastern India, killing 58 people.

"The domestic air passenger market grew by nine per cent in 2000. This is very good growth, and we expect it to continue," he added.

In 1999, Indian Airlines was the market leader with 6.5 million out of 12.2 million total passengers, while 5.7 million travelled by Jet Airways and Air Sahara.

The market had been stagnant in 1998 and 1999.

Jet Airways gains

While the authority's data does not provide separate figures for the two private airlines, analysts say nimble-footed Jet Airways has bagged most of the market share lost by Indian Airlines.

Bombay-based, unlisted Jet Airways, which has a 25-aircraft Boeing 737 fleet, is owned by Naresh Goyal, a former travel agent. Jet started off with four old, leased aircraft in 1993, but has constantly renewed its fleet and now owns mostly young aircraft.

The smaller Air Sahara has a fleet of eight aircraft.

The 52-aircraft Indian Airlines swung to a big net loss in the first 10 months of 2000-2001, ending a three-year profit-making run.

Its officials blame bad publicity after last year's crash for the loss in market share.

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