Monday, September 11, 2017

Air India better positioned as a full-service airline with superior product, says CMD Rajiv Bansal

Air India is better positioned as a full-service airline with New Delhi: “superior product” than its competitors and will strive to position itself slightly above low-cost carriers, according to its CMD Rajiv Bansal. As the loss-making national carrier works on ways to improve its on-time performance and increase the market share, Bansal said it plans to invest in technological upgradation in the fare management system. The upgradation would be done at Air India as well as its low-cost international arm, Air India Express.
In a recent interview to PTI, Bansal, who took over the reins of the disinvestment-bound Air India last month, said the airline is better positioned as a full-service carrier. “I think our product is superior in many aspects to what my competitors offer and we are positioned better in terms of full-service carrier,” the chairman and managing director said. “We are kind of competing with low-cost carriers (LCCs) also. So, we are catering to a segment which definitely looks at Air India fares and if it is too high, then tends to look at some other fares. For marginal difference, many tend to prefer Air India. That is the segment that I am targeting,” he said. Noting that every customer is price sensitive, Bansal said those who value more leg space and availability of food are willing to give that delta above what is being offered by the LCCs. “That is the customer I am targeting,” he added. Indian skies are dominated by LCCs and leading player IndiGo’s market share stood at 38.7 per cent at the end of July, according to official data.
10/09/17 PTI/Financial Express