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February 21, 2007 18:11 IST
Low cost airline Air Deccan aims to raise up to 30 per cent of its total revenues from ancillary streams in three years, a three-fold jump from the current levels, its managing director, G R Gopinath said.
"We are aiming for ancillary revenues of 25-30 per cent in three years," he said. Currently, ancillary revenues account for nine per cent of India's second largest airline's top-line.
"Internet is a powerful engine of growth for us," Gopinath said. "We want to drive revenue into this." Company officials said 8.5 lakh people visit Air Deccan website every day.
Ancillary revenues are essentially categorised as non-passenger revenues, which the company draws by way of inflight catering, excess baggage, selling of credit cards, aircraft branding, hotel bookings and things of that nature.
Officials said the airline, which currently operates 300-odd flights daily, would get into the travel insurance space shortly.
Gopinath said ancillary revenues have enabled the airline, which launched operations in August 2003, to bring down its losses and their increase going forward would help it maintain "competitive" airfares.
"We have not broken even." He termed ancillary revenues as "hedge against inflation." Air Deccan said its website has emerged as India's largest e-commerce site. The company's call centre gets 24,000 calls every day, officials said.
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