Saturday, June 06, 2009

Carriers to soon take a call on on-board mobile telephony

New Delhi: In the midst of plunging load factors on the domestic sector and rising operational costs, loss-making carriers are now turning to alternative revenue models to beef up their balance sheets. As a first, low-cost carriers are weighing the option of providing on-board telephony on their flights as an additional source of revenue. “We are in talks with several low-cost carriers in India to provide on-board mobile telephony through On Air,” SITA regional vice-president Damian Hickey told The Indian Express. On Air, a joint venture between SITA and Airbus, is a mobile telephony service that enables flyers to use their own mobile phones to send and receive emails, exchange text messages and make and receive voice calls and access the Internet.
On-board mobile telephony operates on a revenue share model where the airline ties up with several mobile service providers operating in the country. The charges incurred on making such calls from the flyer’s own mobile are equivalent to international roaming. Under a non-disclosure pact, Hickey was unable to divulge further details or names of the airlines involved.
06/06/09 Smita Aggarwal/Indian Express
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