Saturday, December 22, 2007

‘Kingfisher has game-changing plan for overseas flights’

Bangalore: Kingfisher Airlines may have to fork out about $250 million initially for its international operations but it is learnt to be working on a new ‘game-changing’ model for its overseas flights.
Sources close to the airline told Business Line that Kingfisher Airlines has a ‘game-changing’ product, which could alter the way international flights operate. The $250 million includes the cost of five A340s and five A330s which the airline will induct into its fleet next year for its international operations.
Airline analysts say that the key to the success of international operations of Kingfisher Airlines would be the positioning of the first class as well as business class of the airline.
“The key to the game would be how you sell your first class and business class seats. If you can get them right, then you are in the game,” Centre for Asia-Pacific Aviation chief executive officer for the Indian sub-continent and West Asia, Mr Kapil Kaul, said.
Mr Kaul said each first class seat on a US flight equals between eight and 10 economy seats, and a business class seat equals between six and eight economy seats. Hence, the airline will have to launch a product which would set it apart from the rest.
Mr Kaul said it would normally take between 12 months and 18 months for the international operations to break even and Kingfisher will have to invest heavily in people and put together a top notch corporate team.
22/12/07 Business Line
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