New Delhi: Most experts in the aviation business have written off full-service carriers.Over the last several years, low-cost carriers have steadily increased their market share to 70 per cent. The full-service carriers have done everything they can to hold on to their business - which includes dropping their fares to the level of the low-cost carriers and booking losses - but that hasn't stemmed the tide. But two developments last week suggest that the full-service model may still have life left in it.
First, Vistara, the airline floated by Tata Sons and Singapore International Airlines, announced that its service, to be launched in October, will be a premium one. It will offer personalised service in its business as well as economy class - something not yet seen in India. Phee Teik Yeoh, the CEO of the airline, said the "basification" of travel in India has led to passengers losing their individuality, and Vistara will change the rules of the game.
A few hours after this announcement, Jet Airways Chairman Naresh Goyal said that Jet Konnect, the low-cost service, would be discontinued and henceforth the company would operate only its full-service carrier. The Jet Konnect aircraft will be reconfigured to have a mix of business and economy seats. Passengers will get free meals, more free baggage and all the other facilities offered by a full-service carrier. Goyal admitted that the dual-brand strategy had confused passengers and promised to return the airline to its old glory - it was known for its on-time performance (a reputation now enjoyed by IndiGo) and top-class service.
18/08/14 Surajeet Das Gupta/Business Standard
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First, Vistara, the airline floated by Tata Sons and Singapore International Airlines, announced that its service, to be launched in October, will be a premium one. It will offer personalised service in its business as well as economy class - something not yet seen in India. Phee Teik Yeoh, the CEO of the airline, said the "basification" of travel in India has led to passengers losing their individuality, and Vistara will change the rules of the game.
A few hours after this announcement, Jet Airways Chairman Naresh Goyal said that Jet Konnect, the low-cost service, would be discontinued and henceforth the company would operate only its full-service carrier. The Jet Konnect aircraft will be reconfigured to have a mix of business and economy seats. Passengers will get free meals, more free baggage and all the other facilities offered by a full-service carrier. Goyal admitted that the dual-brand strategy had confused passengers and promised to return the airline to its old glory - it was known for its on-time performance (a reputation now enjoyed by IndiGo) and top-class service.
18/08/14 Surajeet Das Gupta/Business Standard
