Airlines cut business class fares

Mumbai: Faced with a 10 to 15 per cent fall in passenger traffic, business class travel is coming down to earth. For the first time, Jet Airways and Paramount are introducing apex (advance purchase) fares and Kingfisher and state-owned Air India are offering free travel for spouses to boost bookings for this premium service.
Much of the hit is a result of corporate cost cutting, with senior executives now increasingly travelling economy class on domestic routes. Business class tickets are about three times an economy class ticket.
In response, the airline launched an apex offer January 5, applicable to 60 flights, that are 30 to 35 per cent lower than normal business class fares.
The three-day apex fares range from Rs 7,900 to Rs 8,100 (one-way), the five-day apex fares range from Rs 6,500 to Rs 11,500 and the seven-day apex fares from Rs 4,500 to Rs 17,500 depending on the sector.
But even all-business carrier Paramount Airways has announced apex fares and a scheme under which passengers can get a complimentary ticket for a companion for Rs 750 in January.
“We’ve managed to increase our market share from 26 to 28 in South India in 2008. After the slowdown, companies were finding our product even more attractive as ours is a business class product with high-end economy fares,” said M Thiagarajan, managing director, Paramount Airways.
Air India was among the first off the block, announcing a spouse-plus offer December 31 for executive class passengers on the domestic routes.
The scheme, on offer between January and February, allows business class passengers to take spouses along by paying only the passenger service fee (paid to the airport authority) and airport user development charges on select routes.The airline has sweetened the deal with a free-stay for the spouse at select Taj properties.
Meanwhile, Kingfisher Airlines, which has seen its passenger load factor in business class at 35 per cent to 40 per cent in the last few months, is planning a free-companion offer on domestic routes.
16/01/09 Geetanjali Shukla/Business Standard

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Categories: Indian Aviation- In General Jan 2009