Thursday, August 24, 2006

Low cost airlines eye ancillary services

Taking a cue from international no frill carriers like Ryanair and Easy Jet, Indian low cost carriers are targeting ancillary services to shore up revenue, reports CNBC-TV18.
Tying up with hotels and in-flight advertising are the focus areas right now. Indian low cost carriers like SpiceJet, Air Deccan and GoAir are looking to make an easy extra buck by starting ancillary services like hotel bookings, selling on flight insurance, and advertising space.
Currently, Indian no frills airlines earn an average about 5-6% of their revenue from these activities compared to 17-18% earned by international carriers like Easy Jet.
Services like in-flight booking, catering and car rentals have been in operation for a while now, but carriers like GoAir and Kingfisher Airlines are thinking out of the box. They have started selling advertisement space on lockers and trays inside the aircraft, besides selling insurance and providing hotels to passengers.