GoAir looks to fill gap between no frills and full service carriers

Mumbai: The Wadia Group promoted GoAirlines (India) Pvt. Ltd, that runs low-fare airline GoAir, is planning to reposition itself as a value carrier, as part of its makeover.
A value carrier is a business model placed between no-frills and full-service airlines. Until now, GoAir has been a no-frills, low-fare carrier that sells light refreshments on board.
With the proposed change, GoAir will add some services similar to a full-service airline such as Jet Airways (India) Ltd and Kingfisher Airlines Ltd that would include seat selection, multiple insurance facilities, an expanded selection of food on offer, return check-in facilities, and tele check-in. An announcement of this change in the business model is expected in a month’s time.
GoAir chief executive officer Edgardo Badiali declined details, only saying that his airline “is planning to restart (the style of operations) to create value for money while being a point-to-point carrier, and passengers will have to pay to get more.”
Badiali told Mint that his airline will continue to have a low-cost structure but offer more services and products on board, on ground and during reservation.
The carrier is also considering a new package for corporate travellers, aimed at frequent flyers among them. About one-fifth of GoAir’s passengers are repeat travellers, Badiali said.
GoAir is also in talks with leading international carriers on a possible arrangement to carry their passengers domestically. Badiali declined to name these airline firms it may partner with. The Business Standard newspaper last month reported that GoAir was in touch with British Airways Plc.
An aviation expert said GoAir is trying to customize the low-cost business model for Indian passengers and predicted other carriers would follow suit.
05/10/08 P.R. Sanjai/Livemint

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Categories: GoAir Oct 2008