Airlines battle to corner global corporate traffic

Mumbai: With Kingfisher Airlines joining Jet Airways and Air India on international routes, the fight for high-yielding international corporate traffic has taken off.
Attracting business traffic is important because, on long-haul international routes, corporate traffic — much of which flies on the high-yield business class seats — is key to ensuring profitability.
Sudheer Raghavan, chief operating officer, Jet Airways, said one of the segments the airline looked at when it went international was the Indian diaspora. “Now that we have established ourselves with that segment, our focus is on signing up corporates. We have about 2500 corporate deals across the world with various companies. Most of these companies also have a presence in India,” he added.
According to Jet executives, nearly 450 of these deals are with business houses based outside India.
Hitesh Patel, executive vice-president, Kingfisher Airlines, said the airline will target international corporates. Air India, the nation’s flag carrier, refused to divulge details of its corporate deals outside India.
Marketing departments of airlines offer heavy discounts and other perks to attract corporates. The discounts could often be as large as 30-50%. Sweeteners like free upgrades and flexibility in travel plans are also thrown in. Add airport transfers and baggage allowances, and such deals present a tempting offer for corporates.
Mark Martin, senior advisor-aviation, KPMG, said it is a sound strategy to go for corporate deals.
09/09/08 Nirmal John/Daily News & Analysis

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Categories: Foreign Sep 2008, Indian Aviation- In General Sep 2008