The Hindu : AI examining feasibility of budget flights

Online edition of India's National Newspaper
Tuesday, Jan 27, 2004

Kerala

Kerala

AI examining feasibility of budget flights

By S. Anil Radhakrishnan

THIRUVANANTHAPURAM, JAN. 26. Air-India is examining the feasibility of introducing "budget" flights to various sectors, including the Gulf, according to the airline's Chairman and Managing Director, V. Thulasidas.

"The proposal for the introduction of budget flights had already come up for discussion at the director board and the matter is still being examined," Mr. Thulasidas, who is on his maiden visit to the State capital after taking over the reins of the airline in December last, told .

On the disparity of the airfares of AI and other Gulf-based airlines operating in the same sector, Mr. Thulasidas said uniformity of fares was not a feasible proposition in the international sector. The international fares are determined basically by the market. A host of others factors such as supply, demand and seasonality also influence them and there can be difference in fare between one airline and another. "Uniformity of airfares is not our focus and it cannot be achieved. Even in the case of domestic airfares, there is no uniformity among the various airlines such as Indian Airlines and Jet Airways. There is stiff competition in Kerala and no airline can ignore the market. The fares of AI are competitive."

Asked about the reported poor load factor in AI flights operating to the Gulf destinations compared to the 97 per cent load factor in the flights of the Gulf-based airlines, Mr. Thulasidas said it showed that the total demand was more than met. "It also shows that the passenger demand is met and there is no room for more flights. Even the competing airlines have poor load factor to sectors such as Abu Dhabi. Another factor is that while AI operates direct flights, other airlines operate to destinations beyond."

AI does not neglect Kerala nor can it afford to neglect it, as the State is one of the big markets for the airline. Passengers from the State constitute a major percentage of the total traffic of the airline.

"If there are complaints from any quarters, all steps would be taken to address that," he added. The frequency of flights from the premier international airport of the State has gone up from five a week in 2001, to 15 in 2003. That year, there was an increase of 161 per cent in the number of flights operated by the airline, compared to the number of flights operated in 2001.

The airline is operating 23 flights from the Karipur airport in Kozhikode, 22 from the Cochin International Airport at Nedumbassery and 15 from the international airport in Thiruvananthapuram now.

Pointing out that the demand for airline seats was mostly to the Gulf destinations, Mr. Thulasidas said the airline was also operating flights under the "hub and spoke" arrangement for destinations in the U.S., the U.K., Europe and the Gulf by taking passengers to Mumbai and providing connections.

On the movement of the unaccompanied baggage that arrives in Mumbai by flights from many destinations, to Thiruvananthapuram by trucks, Mr. Thulasidas said he would look into the matter.

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