Low-fare airlines add some frills to draw more corporate travellers

Mumbai: Some low-fare airlines are shedding their no-frills image to attract more business fliers, a segment they see sustaining their operations over the long haul.
Corporate travellers account for more than 70% of passengers flying full-service airlines such as Jet Airways (India) Ltd and Kingfisher Airlines Ltd, the country’s two largest private carriers. These airlines enter into deals with companies to fly their employees, offering special discounts and packages in exchange for assured volumes.
On the other hand, low-fare, economy class airlines see only 50% of their revenues from business travellers, a segment that can be crucial for them, especially during the current trough in aviation.
Carriers such as IndiGo, run by InterGlobe Aviation Pvt. Ltd, SpiceJet Ltd and JetLite (India) Ltd, the low-fare subsidiary of Jet Airways, have started offering free food on board for corporate fliers, and waiving cancellation and rescheduling charges.
Kingfisher Airlines is also planning special deals with companies that have employees frequently flying on its no-frills airline Kingfisher Red, previously Air Deccan.
Bruce Ashby, chief executive officer of IndiGo, said his airline offers companies all-inclusive fares and discounts based on the commitment of volumes.
Following the popularity of prepaid meals for business fliers, IndiGo now plans to allow other customers to prepay for meals at the time of booking itself.
SpiceJet says on its website that its corporate fares are pre-loaded with zero charges for any rescheduling and cancellation along with a complimentary snack on board.
22/09/08 P.R. Sanjai/Livemint

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Categories: Low Cost General Sep 2008