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Thursday 28 August 2014

What full-service carriers and low-cost airlines are offering to woo & retain frequent flyers

Frequent business travellers are an airline's delight. They pay up to 300% more than the lowest fares offered for advance purchases and over 10 times the average fare for business class seats. In other words, they are the backbone of an industry that struggles to make money.

Most passengers would want nothing more than airlines to be on time and offer a hassle-free, clean service. The expectations of frequent travellers are markedly higher. Even on flights of two hours or more, they wouldn't mind paying a premium for extra legroom, the comfort of an airport lounge, accumulation of air miles and tasty food. A decent in-flight entertainment is a must.
Due to the absence of low-cost aviation infrastructure in India, the traditional boundaries between full-service carriers and low-cost airlines have blurred. Lowcost, or budget, carriers have been offering improved services for better yields and full-service carriers have been reducing add-on services along with fares to retain market share.


For frequent business travellers, this is a mixed bag. Improved services by lowcost airlines? Great. Reduced services by full-service carriers? Not-so great. But recent developments in Indian aviation signal these passengers might be in for good times.

Look at budget carriers. They have in recent times introduced a series of products aimed at the high-paying passenger. Spice-Jet is leading the charge with SpiceMax, which offers extra legroom of six inches in the first five rows of their Boeing 737 jets and the first row of their Q400 turboprops, 'along with priority ground handling for only Rs 500 a passenger.
Read news in full 24/08/14 Devesh Agarwal/Economic Times

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