Thursday, April 22, 2010

Jet Airways proposes business class at budget prices

The rainy days for airlines may be over and taking flight from the raise in demand for comfortable air travel is Jet Airways.

Noticing that their business customer wants more, the company commenced a new business class service aboard Jet Konnect, their no frills all economy class airline.

With the economy opening up and air travel gaining back its momentum, companies are cashing in on enhanced opportunities and Jet is tapping the corporate traveller with their latest offering.

Passenger volumes are seen to be up by almost 30 per cent for Jet Konnect, the company is positive on raking an extra 8 to 10 per cent in revenues through this offering.

Priced 20-25 per cent lesser than their lowest Jet Airways business class fare, they feel there will be takers with corporate easing travel budgets and leisure travelers looking for console.

But will this result in cannibalizing your full service airline customer on the similar routes?

Rajeev Batra of KPMG, said, As far as Jet is concerned, they are a chiefly full service carrier and hence would want to see a shift between full service and low cost. This will impact their yields, it’s a wise business move, given the present affordability of passengers.

Meanwhile, experts feel with companies concentrating on higher yields, a move like this is not surprising and given the present scenario, strategies on these lines may work given the sunny skies.

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