New Mumbai terminal: All airlines to share one lounge

Air India, British Airways, Emirates and Lufthansa are set to lose their exclusive lounges at the Mumbai airport, with Mumbai International Airport Limited (MIAL) planning a common lounge for all airlines at T2, its international terminal slated to be opened this year.

A few weeks ago, airport executives had informed airlines about the plan to develop a common lounge. Airlines that would be hit by the move are resisting it.

Airport lounges offer comfort and exclusivity to business travellers and privileged customers, and airlines with a strong focus on premium traffic invest in developing lounges at their hubs and key airports around the world.

Currently there are six lounges at the international terminal in Mumbai; four are run by airlines exclusively for their passengers, as well as those of their partners. While the fifth is a Clipper Lounge, used by other airlines, the sixth is a lounge-cum-restaurant open to all passengers.

Sources said MIAL’s decision to opt for a common lounge at the new terminal might be influenced by two factors — better utilisation of space and higher revenues. Currently, airlines operating the lounges pay a fee to MIAL, but do not share the revenue with the operator, as airlines do not charge passengers for using the lounge.

An MIAL spokesperson did not respond to an email seeking comment.

Sources said while finalising an agreement for the lounge at the new terminal, the airport operator would eye a share of the revenue. “The proposed lounge is said to be bigger than all the four airline lounges combined. Though it would have all modern facilities, we would lose our exclusivity,” said an airline executive. “Lounges are an extension of an airline’s products and services on the ground,” said another executive.

In a statement, British Airways said, “Our home at Heathrow has multiple award-winning lounges and we would like to provide a similar experience to our customers in India, the second-most important country for us, after the US.”

Lufthansa, too, said it was keen to continue its lounge in Mumbai. The airline’s lounge is also used by other Star Alliance members, including Singapore Airlines, United, Turkish Airlines and South African Airways.

“Lufthansa lounges are an integral part of the overall high-quality passenger experience worldwide. In India, Lufthansa recently started a multi-million euro investment programme, which introduced latest aircraft such as the new Boeing 747-8, the all-new business class and a new airport lounge in Delhi. Lufthansa has no intention to change the well established and successful lounge concept in Mumbai, in the interest of the satisfaction of our valued customers and the overall quality experience at the Mumbai airport,” the airline said in a statement.

Air India and Emirates did not respond to a query on the issue.

To attract passengers, global full-service airlines are investing in products and amenities such as spas, massage service and champagne & cigar rooms. Last year, USA Today reported along with US airlines, carriers such as Lufthansa, Korean Air and Qantas had invested in developing lounges. It added while Delta had spent $30 million in the last three years to spruce up its lounges, Korean Air opened a 160-seat lounge in Seoul and Lufthansa invested in opening ten lounges and refurbishing five.