Airlines hope for lift from new revenue streams

Mumbai: At a time when airlines are grappling with huge losses owing to cut-throat competition and rising fuel prices, several of them have started looking to alternative revenue streams to boost growth. Low-cost carrier SpiceJet is targeting 8% revenues from courier operations, in-flight catering and travel insurance in the current fiscal.
SpiceJet sources say that of the total revenues of Rs 1,500 crore, the company is targeting Rs 120 crore through alternative means.
Meanwhile, Air-India, which has launched a dedicated freighter service to Europe, will look at more destinations such as Asean for cargo operations and is aiming at 10% of revenues from cargo services.
Even Jet Airways and Germany’s Lufthansa are in talks for a cargo airline. And Air Deccan’s cargo business will be run as a separate subsidiary, which will also seek foreign investment.
03/07/07 Shaheen Mansuri/Financial Express

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Categories: General Aviation Jul 2007, New Jul 2007