Aviation boom in India! Rising airfares, other factors may attract big corporates to enter this sector
According to a research report by JM Financial, if high airfares persist for multiple years, it is likely to attract other corporate houses with deeper pockets to enter the sector due to its low entry barrier. Akasa Air, which gained 5% market share within a year, has demonstrated this trend.
The sudden bankruptcy filing by Go First, holding a 6.4% market share and a fleet of 26 operational planes, in May of this year has significantly benefited existing players in two ways: a sharp increase in fares (18% quarter-on-quarter according to JM fare tracker) and record high passenger load factors (PLFs) of over 90%.
