Domestic Airlines See Big Bucks In Business Class

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Anjuli Bhargava BSCAL
Last Updated : Oct 01 1998 | 12:00 AM IST

Domestic airlines have decided to get down to business. So no more `Sahara Holidays' at dirt-cheap rates, no more "business plan" packages with free hotel nights thrown in and certainly no more heavy discounting of fares guaranteed to make consumers' spirits soar and airlines' balance sheets bleed.

Instead, operators plan to focus on the old faithful _ the business traveller. This, of course, makes sound business sense. Air fares are soaring, with Indian Airlines hiking fares by 11.2 per cent and other airlines set to follow suit.

Business class fares are 30 per cent higher than those of economy class and business travellers are usually less price-sensitive than normal travellers.

The new gameplan, therefore, will be to lure more and more business travellers by offering value-added services.

The most aggressive strategy is being adopted by Sahara Airlines, which hopes to earn a third of its projected turnover of Rs 408 crore for this year in the next three months.

The services planned by Sahara include luxury hotel check-ins in the metros for business class travellers, customised meals _Thai, Mexican, Italian or Chinese, you name it _ and a city check-in option from today.

Automated boarding is expected to be on offer from end-December. Sahara is simultaneously ending all lean-season discounts and packages. "It's time to make money", says Kapil Kaul, chief general manager, "and we will value-add to attract business travellers."

Not to be left behind, Jet Airways is also introducing city check-in counters at its booking offices in the metros, "so that passengers have to spend minimum time at the airport". It is also replacing two of its Boeing 747-400s with 747-800s on trunk routes so that customers can travel in more comfortable planes. Jet's point-to-point fare scheme the customer pays a direct fare from Delhi-Trivandrum instead of having to pay Delhi-Madras and Madras-Trivandrum) is also being extended till October 30 and may be extended further depending on traffic.

A Jet spokesperson claimed that Jet had already introduced most of the features that Sahara was planning - "Sahara is simply following our footsteps - they are even copying our corporate colours. We are the leader", he argues



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First Published: Oct 01 1998 | 12:00 AM IST

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