SpiceJet & IndiGo still bright sparks in a sector that's been on a high level

It is fair to say India's domestic aviation ndustry is in fine fettle. The industry has been clocking double-digit growth for the last 37 months. It witnessed 15.7 percent (YoY) growth in August 2017, higher than 12.5 percent it grew in July 2017. The performance in August was better than the month before as engine issues that were impacting IndiGo and GoAir were partially fixed. 

While IndiGo continues to dominate the Indian skies, its market share fell by 80bps (MoM) in August on the back of engine problems that it was facing in its A320neo aircraft. The company had grounded 13 aircraft due to engine issues. However, recent news reports indicate that IndiGo has started receiving spare engines from Pratt and Whitney (P&W), which would provide a short-term solution to the leader. This resulted in a better performance on all parameters in August when compared to the month before. 

IndiGo managed to return to double-digit growth in passenger traffic in August, as compared to the singledigit it achieved last month. However, passenger growth is still way below than its normal.Its load factor was almost flat at 83.6 percent on the back of significant 240bps (MoM) rise in the RPK (revenue passenger kilometer) and 50bps (MoM) rise in the APK (available seat kilometer).