Airfare hike grounds business travellers

Mumbai: Dilip Chaturvedi, a middle-level executive with a production house, shuttles between airports thrice a week to check locations and promote films. But thanks to the soaring airfares, he might soon lose out on this privilege.
“Especially for short distances like Ahmedabad and Baroda, we might have to make an overnight train journey,” said the 31-year-old.
Like Chaturvedi, several corporate fliers and small entrepreneurs who frequently climbed into flights after the boom in budget airlines might have to step down. “We are expecting a drop of 15 per cent and 5 per cent in domestic and international business travellers respectively,” said Anup Kanuga, chairman (western region), Travel Agents Association of India. “Renewal of contracts with corporate houses is expected to have changes.” Usually, corporate houses renew contracts with airlines depending on their annual accounts cycle.
According to industry estimates, business fliers comprise 60 per cent of the Rs 18,000 crore domestic air travel market. Corporates spend about Rs 5,400 crores on domestic travel per year.
23/06/08 Soubhik Mitra/Hindustan Times

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Categories: Indian Aviation- In General Jun 2008