India’s domestic aviation space is heating up with new launches and rankings! As per the July data released by the DGCA, Vistara flew past the competition to occupy the 2^nd rank in the domestic market share. It now stands at 10.4% ahead of SpiceJet, Go First, and others. But all these airlines are trailing way behind IndiGo, which occupied almost 58.8 % of the market share in July. With Akasa Air also a contender now, it will be interesting to see the data for the next few months.

Vistara’s Domestic Share Ranking at the 2^nd spot is rather a surprising turn in the Indian aviation space.

Understanding Vistara’s Ranking

In July this year, Vistara’s domestic share reached 10.4% (some 1.01 million domestic passengers). Vistara has never reached such top ranking since it began operations nearly seven years ago in 2015.

Two of Tata-owned airlines, Vistara and Air India showed an increase in passenger number in July when compared to June. Even IndiGo was not immune to a drop in passenger numbers (when compared to the June data). Somehow the numbers swung to Vistara’s favor in July.

In June, it was trailing behind SpiceJet when it comes to per passenger numbers. This figure turned in Vistara’s favor in July. With a closer look; the numbers point to Vistara utilizing the lower capacity vacuum in the market by SpiceJet and other stretched-for-funds airlines. Lower capacity equals a reduction in the market share. Vistara, which is well-funded, didn’t need to lower its capacity and, thus, could improve its market share. This helped to improve Vistara’s domestic share ranking.

The Nitty-Gritty of the Domestic Aviation Space

IndiGo has ruled the domestic space with the largest market share by a large percentage. The 2^nd spot has always been volatile. Other airlines such as Air India, Go First, and SpiceJet have all occupied the 2^nd ranking at one point over the last few years. Though this is the first time Vistara has grabbed the 2^nd spot, which is quite coveted (as IndiGo refuses to buzz from the top).

Larger domestic share doesn’t automatically translate into more profits. But it opens up the way for it. Monsoon season can be a lean period for air travel. SpiceJet also operated fewer number of flights due to restrictions put on the airline by the DGCA. These restrictions were put in place for the technical snag the airline faced lately. Once SpiceJet is back on schedule and the airfare restrictions are removed from 31^st August; a truer picture will emerge.

The DGCA data for the months of September will be thus more interesting to note. The entire aviation industry will no doubt wait for the August and subsequent reports to check if Vistara’s domestic share ranking remains the same or not.

Now when you take flights to India, you have many good options including Vistara for visiting various destinations in the country. You can book cheap tickets via Indian Eagle and explore India at leisure.

About Vistara: Vistara is jointly owned by the Tata Group and SIA (Singapore Airlines Ltd); with the former being the majority stakeholders with 51% share. It operated the first flight from Delhi to Mumbai. Its first international flight was from Delhi to Singapore in August 2019.

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