Indian carriers yet to catch up on ancillary revenues

One can fly for a dollar plus taxes, but on board, you could pay between three and five dollars for a snack. That's how most international low cost carriers make money. But in India, a Rs 100 ticket does not earn much more, reports CNBC-TV18.
Rarely would you see a flying hoarding in India. That's because airlines are not keen to sport another brand on their aircraft.
But here, besides food sales, Indian carriers have hardly been able to generate revenues from ancillary sources like car rentals, hotel bookings, travel insurance and on-board sales. That's partly because they are still trying to stabilise their operations and partly because there aren't enough partners to tie up with.
Ancillary revenues for most Indian carriers are between 3-7%. But for international carriers, they contribute twice as much, that's 15-18%. Even though Indian low-cost carriers make money selling food on board or charging exhorbitantly for excess baggage, it's an insignificant contribution to revenues. International carriers charge extra for booking pre-assigned seats, SMS alerts and flight information on the mobile.
24/08/07 Moneycontrol.com

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Categories: General Aviation Aug 2007