Get ready to be pampered when you fly abroad next time. Stung by the slowdown in the US, international carriers are going all out to woo travellers from countries such as India, which are still registering a double-digit growth in outbound traffic.
Your choice to fly an international carrier will now be influenced by how flat the beds are, how wide your business class seat is or whether a super luxury car drops you off at the airport. This is exactly what the international carriers are offering the premium Indian travellers.
International airlines pick up at least 60-65 per cent of the onward traffic from India. Many airlines feel this is the perfect time for improving the luxury quotient so that yields go up even if the load factor is down.
Mark D Martin, senior adviser, KPMG, said the Indian aviation sector is registering a double-digit growth despite the high air turbine fuel prices. This is not seen anywhere else.
International carriers are therefore seeing an opportunity in the country. The first class is increasing at the expense of the economy class. The thumb rule for every airline is that for every eight economy seats, at least one first class seat has to be sold.
Martin said foreign airlines are able to offer premium services as they can take advantage of the relatively lower air turbine fuel costs in their country of origin. Moreover, the new generation aircraft pressed into service by many carriers, has brought down the maintenance costs by at least 50 per cent. "So, some extra caviar or champagne in a fancy flute isn't a big deal," Martin added.
Singapore Airlines, for example, has improved its premium offering on its flights from Mumbai and Delhi. "The game has changed for us. We are differentiating ourselves from our competitors by customer satisfaction. It is a move that is market driven and the customer is willing to pay more," says Foo Chai Woo, general manager, India for Singapore Airlines. Woo says the airline is improving the first class with significantly wider seats and has the biggest beds in the sky.
The airline gets at least 80 per cent load factor from India and 30-40 per cent of revenues come from the business class passengers. Hong Kong-based Cathay Pacific, which recently increased the number of flights to 35 after the bilateral agreement signed last year, will for the first time introduce a First Class service on its flights with flat beds. Cathay will introduce a Boeing 747 on the Mumbai route, its most profitable route, by October- end.
Cathay gets 22 per cent of its revenues from the business class and it plans to up this to 30-35 per cent by next year. "We need to get a correct mix of yields and volumes and with Indians still upgrading from economy to business class, we see it a good strategy to get this product in India," said a Cathay executive. The airline has managed almost 80 per cent load factor from the Indian market.
Take, for example, the all business class, 48 flat bed configuration on the Airbus A319 flown by Lufthansa from Pune to Frankfurt. Lufthansa will fly six weekly flights on this route with a spacious cabin layout and exclusive service on board.
Lufthansa director Werner Heesen says the airline has seen a strong traffic growth in India over the past few years and is confident that it will continue. Aircraft manufacturer Boeing too says that smaller aircraft with all business class configuration or aircraft with more space for business travel are the way forward.
Even Emirates, which is currently playing the volume game with 125 flights per week, has recently introduced services like chauffeur-driven cars for First and Business Class passengers in Mumbai - something that they have been giving to their passengers abroad for many years.
