New Delhi: Faced with a major downslide in
business traffic, airlines are now adopting innovative schemes
to attract high-end and corporate travellers to fill in the
seats on the front rows.
As the global slowdown intensified, the airline industry
felt the heat with a sharp drop in business and first class
travel as companies resorted to video conferencing instead of
having their officials fly.
However, in some good news for the beleaguered industry,
the latest report of the global airlines body International
Air Transport Association (IATA) has projected "early signs of
an upturn" in the number of business class travellers, though
it says the yields have not gone up.
According to the IATA, the drop in the number of
international premium travellers in July came down to 14.1 percent versus last year, compared with a 21.3 percent decline
in June. Excess premium capacity and changed corporate travel
buying kept yields down 23 percent and premium revenues
down 35-40 percent in July, the IATA's Premium Traffic
Monitor said.
It said consumer confidence has been rising since
February, pulling economy travel up with it. "Passenger
numbers are now starting to turn up but there is a long way to
go before activity returns to levels seen in 2007 and early
2008," the report said.
The report, however, added that the problem of low yield
would continue with economic growth forecast remaining
relatively weak.
Buoyed by this outlook, major global airlines have
started offering varied range of incentives to promote
high-end travel in the bad times. Global airlines have started
wooing fliers back even offering discounts of up to 50 percent for business and first class fliers.
Air India had offered a limited period 'Companion Free'
offer for business class travellers in June for travel till
October this year, while other Indian carriers are now
considering doling out similar concessions to attract premium
travellers. Jet Airways and Kingfisher had also slashed their
premium class fares for a limited period earlier this year.
British Airways is offering its outbound business (Club
World) passengers a one-way upgrade to its premium First cabin
for free, a company spokesperson said.
The offer is available for outbound travel from Delhi,
Mumbai and Bangalore to the UK, the US and Canada and from
Hyderabad and Chennai to the US and Canada, the spokesperson
said, adding that tickets are on sale till September 30 for
travel till January 31 next year.
The airline's Regional Area Commercial Manager (South
Asia) Judy Jarvis said "this is a great chance for our
discerning Indian customers to indulge themselves and enjoy
unmatched service on board British Airways. ... This special
offer will allow us to totally pamper our passengers."
The airline operates 45 flights per week from London,
Heathrow, including double dailies from Mumbai and Delhi, a
daily service from Bangalore and five times a week from
Chennai and Hyderabad.
American Airlines is also offering low economy class
fares and upgrades to higher classes of travel to attract
business passengers. A company spokesperson said low-priced
tickets can be available till September 30 for travel up to
December 10.
The Air France-KLM combine would also soon offer a new
travel option for its customers called Premium Voyager, which
would be a new class between economy and business with the
fares positioned between the two classes. The offer would come
into effect from November on Air France and December in KLM.
Similarly, Malaysia Airlines is also attracting
passengers through its Economy Plus scheme and business class
'Buy One, Get One Free" offer.
The Economy Plus scheme would allow a passenger to travel
in business class at fares which are 30-50 percent lower than
the normal business class fare.
Bureau Report
First Published: Sunday, September 20, 2009, 15:04