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This article was first published 10 years ago

What are budget airlines doing to attract biz travellers

May 13, 2014 13:25 IST

Image: Low-cost carriers are keen to improve their revenues in business class segment.
Photographs: Reuters Aneesh Phadnis

Budget airlines are wooing the business traveller ahead of the launch of two new Indian airlines.

GoAir is revamping its business class product, GoBusiness, with more comfortable seating and SpiceJet is offering free flights to companies on the purchase of  6-10 tickets.

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What are budget airlines doing to attract biz travellers

Image: No-frill carriers are offering discounts to their corporate clients.
Photographs: Courtesy, GoAir

The aviation industry is highly seasonal with summer and winter peak seasons.

All airlines depend on business travellers for regular traffic.

Typically, airlines offer discounts to companies committing a fixed business during the year.

Also companies get waivers on cancellation, free meals and a higher luggage allowance.

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What are budget airlines doing to attract biz travellers

Image: Budget airlines are improving their product offering to improve load factors.
Photographs: Courtesy, GoAir

GoAir sells only eight seats in the two front rows of its Airbus A320, keeping the middle seats vacant. Known as GoBusiness, this effort to attract the business traveller since 2010 has faced a tepid response.

The airline is now improving the offer with more comfortable seats and new upholstery. 

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What are budget airlines doing to attract biz travellers

Image: GoAir is now aggressively marketing its GoBusiness product.
Photographs: Courtesy, GoAir

The airline has 19 A320s and is reconfiguring seats in its fleet.

“GoAir is now aggressively marketing its GoBusiness product.

That was not the case earlier,” said a source from the travel industry who did not wish to be named.

“We have been working on improving the customer experience.

We are investing in product enhancement and staff training,” the GoAir spokesperson said.

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What are budget airlines doing to attract biz travellers

Image: SpiceJet offers compensation for flight delays.
Photographs: Reuters

SpiceJet recently launched a corporate flyer programme that offers a free flight for six one-way or three return tickets.

There are two free flights for 10 one-way or five return tickets.

“GoAir and IndiGo are trying to catch up with SpiceJet which is popular among corporates because of its on-performance and service.

SpiceJet's announcement last week, offering Rs 500 and Rs 1,000 vouchers for flight delays of one and two hours, is aimed at business travellers who value punctuality,” said Anna Singh, assistant managing director of ATPI, a corporate travel management company.

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What are budget airlines doing to attract biz travellers

Image: SpiceJet has launched a special scheme for its corporate fliers.
Photographs: Amit Dave/Reuters

Luring biz class

* GoAir sells only eight seats in the two front rows of its Airbus A320, keeping the middle seats vacant. Known as GoBusiness, the scheme aims to attract business travellers as the segment has faced a tepid response since 2010

* SpiceJet recently launched a corporate flyer programme that offers a free flight for six one-way or three return tickets

Source: source